Katanga Mining Ltd Ord KATFF

RE:RE:RE:RE:RE:RE:RE:RE:RE:I hate to say it but...

[bigguy56]

Good post Topdop. Further to what you have said... do you think that Glencore wants to keep the company or are they preparing the company for an asset sale? It seems to me that they are preparing for an asset sale. KAT will make a nice asset once the capital investments are complete. I do not know as much about the corporate structure as some here, especially with the involvement of KCC, etc. So perhaps selling KAT is not a reasonable objective. 

But, having caretaker management in place seems to fit that objective.

I don't know the history of KAT, but it seems that this would have been costing them money so when the Cobalt craze started, they felt it was a good opportunity to do something with the asset, with several potential outcomes (seling, keeping). ThIngs have not worked out well.

Like i have previously posted, these projects require to be completed one they are at about 30% complete. At that point, long lead items have been ordered and it is go-time. There is no turning back. It looks to me like they are completing the work and then they willl have an asset with a value. And also alot of debt that may make the 2 conbined not economically viable. So I am not a Corporate FInance guy, but I do know that in M&A analysis, one can exclude Corporate debt from the p[icture and arrive at different solutions. . So what would this potentially mean for shareholders?? Probably not good, but if anybody can shed some light at current copper prices, that would be great.