Katanga Mining Ltd Ord KATFF

RE:RE:RE:RE:RE:RE:RE:Healthy Consolidation

[Sogosohubidu201]

Chinese major cobalt companies such as Huayou and Hanrui already had significant loss in Q1 this year due to low cobalt price. They are projecting big loss in Q2, too.  Artisanal miners are gradually exiting cobalt mining and it is projected that the cobalt volume from artisanal mining may be down 70% because of the impact of low cobalt price.  We are starting to see the sign of supply side destruction for cobalt.  At the same time, cobalt use in EV has been increasing significantly.  After KAT cobalt volume increase being adsorbed by the increase in EV usage, we should see some cobalt price recovery moving forward in Q4 this year and into next 2 years.  The cobalt price may move into $40,000-$50,000 per tonne range in 2021-2022.  However, after 2022 and before 2025, we will likely see $80,000 per tonne or even $100,000 per tonnne of cobalt price due to severe cobalt shortage by then. For huge reward, have to have patient to wait for the next 3-5 years.