OTCPK:KATFF - Post by User
Comment by
Lech1988on May 27, 2019 7:13am
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Post# 29774689
RE:RE:Debt-to-equity swap option?!
RE:RE:Debt-to-equity swap option?!The market capitalisation of KAT is only slightly larger than the outstanding INTEREST we owe to Glencore. At present the equity has so little value that it wouldn't even make a dent in the debt load outstanding. In my opinion the only viable solution is to restructure the tenor of the outstanding liabilities such that Glencore retains its juicy interest payments and KAT has more time to fully ramp its Cobalt production. They key thing to remember is even if the ramp up went perfectly and all the cobalt was sold/exported on schedule mathematically it would have been impossible for KAT to have paid off the debt by 2021 so this current situation was largely inevitable.