OTCPK:KATFF - Post by User
Comment by
Sogosohubidu201on Jun 20, 2019 4:12pm
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Post# 29846433
RE:RE:RE:RE:I hate to say it but...
RE:RE:RE:RE:I hate to say it but...@ topdop, I have 220K cash sitting on my account. If KAT does drop to 20 cents range, I am definitelly going to buy 400-500k shares of KAT. But I don't plan to add more at the current level. High C1 in Q1 2019 was caused by the absence of cobalt sale. We will see big decrease in C1 in Q2 2019 results. To develop a mine into commercial production of 300k copper and 35k cobalt annually would need in average $6 - 8 billions USD. So the high debt of KAT is not out of range in the industry. In terms of Ion Exchange Plant, as long as KAT is producing 1,200 tonnes of cobalt per month, KAT should be free cash flow positive from Q1 2020, and we can afford to wait for the development of Ion Exchange Plant.
I remember Glencore CEO said at the annual meeting in April this year that the cash flow from KCC operation should make KCC pay off debts Very Easily.