Katanga Mining Ltd Ord KATFF

Co Radiometric Taint was a Market Control Bluff

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My latest Comment from my SA KvN KAT Blog:

Encouraging production numbers this week from KAT: Cu cathode production increased to 65,402 tonnes in Q4 2019 from 59,424 tonnes in Q3 2019.

Co contained in hydroxide production increased to 6,173 tonnes in Q4 2019 from 4,763 tonnes in Q3 2019

Financials for this increased output are going to be the "tell". Maybe in one more year we'll be cooking on gas finally...

And just to remind everyone - again - I've been saying from day one that the Radiometric taint on former Co hydroxide production would be fixed by better Production Drilling, Ore Blending and Phosphoric Acid treatments (I was at last year's AGM and Darren, the prior CEO - well, one of them anyway...) told us H3PO4 was being implemented with some sucess.

I've argued that these tainted Co stockpiles were "manufactured" and could be "normalized" by being blended with new, "clean" product such that exports would bounce back, as well, I stated categorically that I believed no Ion Exchange Plant ("IX") was ever needed or would be built.

I have suggested that I believe Glencore have been using the Radiometric Taint as a "Red Flag" to bait-and-switch the dumb market into believing there was a real problem with Co production.

I maintain it was an entirely manufactured market control ploy - give them their dues - one of some magnitude and bravado.

And probably, if ever fully investigated, quite likely a highly illegal one. But look at the Co price. It worked.

KAT says:

"In line with a long-term solution and further technical development, Whole Ore Leach ("WOL") modeling has been completed which indicates that both current and 'elevated' Uranium levels may be successfully removed from the cobalt hydroxide product with KCC's Phosphoric acid addition capabilities. KCC is however continuing to evaluate the feasibility of an IX Plant."

So there you have it. H3PO4 treatment working and Co production scaling back up nicely. Who knew??!!?

No need to believe their last quoted sentence. An IX was just a super-duper, highly technocologically orientated brain-twister that they hung this whole ruse on. There will be no such IX built... ever.

These are my views only. Thanks for reading.