Katanga Mining Ltd Ord KATFF

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

[Sogosohubidu201]

@lech, $1 billion Canadian free cash at $15 per pound of cobalt price and $6,500 per tonne of copper price is after tax and capital expenditure. $1.7 billions EBITDA Canadian (which of course before tax as the name indicates) and $1 billion Canadian free cashflow are estimated with the new tax regime including super profit tax.

NPV for KCC and ERG mines were estimated and published in October 2018. Congo signed its new mining code into law in June 2018. Therefore, it is probable that the NPV values may be estimated taking into consideration of the new mining code. But I do not know for sure because I don't a have a copy of detailed calculation from Goldman.

DRC still keeps tax credits in a large part, but there are some changes, it appears. Details are not available to me.

The best way is to use the free cash flow for share price estimation because it includes everything there.  With 8% cash yield currently for the broad market, if use 10% cash yield and cobalt price rises to $50,000 per tonne ($22.7 per pound), KAT will be easily over $5 share price, say in 2022.