OTCPK:KATFF - Post by User
Post by
Sogosohubidu201on Jun 13, 2019 8:19pm
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Post# 29824658
Debt to Equity and Dilution
Debt to Equity and DilutionYour guys should put this debt to equity conversion and dilution at the market price to the rest. It is very unlikely. If Glencore wants to screw the minority shareholders, glencore would have done it when the previous loans were due in March 2014 and share price was around 40-50 cents at that time. Glencore did do it or could not do it. In my view again, as I said before, If glencore wants to do that, it has to be close to the NPV value that is north of $5 per share for minority shareholders considering the mine is about reach the full production in 6 months.
The loans will either be extended or KAT to take loans from banks pay off Glencore partly or in whole at lower interest rate (2-3% lower, 4-5% interest rate as compared to 6-7% interest from Glencore) because by then KAT should generate good free cashflow to allow itself to be in a position to do so.