Katanga Mining Ltd Ord KATFF

RE:RE:RE:RE:RE:RE:RE:RE:Essential reading

[Sogosohubidu201]

That may be a reasonable expectation. But I don't think that Glencore is going to sell its crown jewels (KAT mine) in the next several years when they clearly know that cobalt price is going to go up and KAT is ramping up cobalt and copper production, and they are going to be in control of the cobalt supply and thus cobalt price in a large extent in the future.

Glencore had already projected for KAT mine to generate $1.7 billions EBITDA Canadian and $1.0 billion free cash flow at $15 per pound of cobalt price and $6,500 per tonne of copper price at steady state operation. If cobalt price does rise to $70,000 USD per tonne long term, KAT will generate over $3.1 billions EBITDA Canadian $. The Enterprice value over EBITDA for copper plays FM.TO and FCX are 11.35 and 9.5 currently.  At this ratio (say 10), this will be $12 share price Canadian $, say in 2022-2024. Everybody be patient on this board (haha).