Katanga Mining Ltd Ord KATFF

RE:RE:RE:RE:RE:Glencore Onwership of KAT shares..Latest

[patels96]

The interest is irrelevent to GLEN as upon condolidation the interest expense and interest income report on GLEN's finaicals are eliminated. The accounting works as such that when GLEN issues the debt its an asset on GLEN's balance sheet, but a liability on KAT's. Since GLEN holds ~86% of all of KAT's assets and liability are recorded onto GLEN's balance sheet, thus eliminating the loans off the balance sheet (effectively no loans from GLEN to KAT are shown on GLEN's balance sheet). The interest income will not trickle down to GLEN's shareholders as profit. However, what will tricke down is the shareholder equity of KAT to GLEN's shareholder. Its in GLENs best interest to make KAT profitable in order for GLEN's shareholders to reap the benefits of a majority shareholding in KAT.

Based on my debt capacity analysis of GLEN's loans to KAT, GLEN can extend the loans for another 6 to 7 years. Like I said earlier, got no takers if you want to see my financial model on KAT give me your email adress and I can send it

Best,