Katanga Mining Ltd Ord KATFF

My rough estimates of earning and SP

[mingzhu]

net revenue $4000 m  minus  royalty 641 m minus  interest 930 m (10% of 3.7 b+5.6 b from KCC) = 2400 m . assuming all other cost such as salary etc 400 m, = 2000 m earning * 50% super tax = 1000 m / 2 b shares = $0.5. 10 multiples gives $5 SP. 

the all other cost of 400 m is likely to be underestimated. I hope others come out with your estimates.

[60606060]

$5.00 SP would be nice especially nice if the present SP was $2.50. MCAP about $5B

[Sogosohubidu201]

Your interest calculation is incorrect because the amount of debt and interest rate are incorrect.  The new interest rate is 7% and the total debt KAT owed to Glencore is $3.77 billions for loan debt and $2.3 billions for customer pre-payments.  KCC debts and KAT debts are different.  KCC owed KAT for the debts while KAT owed Glencore for the debts. Some posters on this borard still

[Gws0623]

Note 26 from the Dec 2017 financials shows a US$4.5 Billion tax loss carry forward for the DRC.  This wasn't part of the Gecamines settlement so I imagine it still applies.  These losses can be applied against 70% of taxable income in any given tax year and should provide a nice tax shield for at least 3 or 4 years, even with a 50% super tax. Sogo, what do you think?  

[Sogosohubidu201]

Yes, that is correct.  We have nice tax loss carry forward.  We also have one time charge of $150 millions from the settlement. It will be interesting to see the earning numbers in the nest few quarters.  I am confident for the net earning of $1.0-1.2 per share next year if copper and cobalt prices remain similar to the current levels.