Katanga Mining Ltd Ord KATFF

A case for Buying

[topdop]

I am writing to remind readers that there are limited few Co mines in the world, most Co being derived as a by-product of Cu mining (and to a lesser extent, Ni mining).

I am also writing to remind readers that KAT is primarily, and in the first instance, a pretty sizeable Cu miner.

With full Steady-State Cu production slated to reach 300kt/year by 2020, KAT will sit firmly in the mid-tier bracket of producers. With it's massive Co (and H2SO4 credits), it should also end up in the lowest cost quartile bracket too).

https://www.theglobeandmail.com/amp/investing/article-copper-and-the-very-big-fund-short/

Andy Home's article aptly summarizes the "push-pull" that's been going on in base metal markets in recent months and partly also explains KAT's continued share price weakness that has occurred in surprising contrast to the very positive catalysts achieved of late; notably the Gecamines & Gertler settlements and the KAT delivery of increasing Co production in particular.

One section of note in this article says "Peace has broken out in the Chilean copper industry with two major potential labour flashpoints resolved in as many days". Thinking Cu might actually wilt on these events, Home points out that infact "(LME) three-month copper shrugged its shoulders and has over the past 24 hours punched back above US$6,000 a tonne, extending a recovery from last Wednesdays low of US$5,773 to a current US$6,045".

He goes on "This says much about the extent to which copper has been reacting to macroeconomic, rather than industry-specific, drivers". I COULDN'T AGREE MORE...

So with these events and beliefs, I challenge that you should NOW BE A BUYER of KAT because:

1: The US : China trade war is just "Trump politik" and will be resolved soon particularly given the Nov mid-terms are coming up. The LME Cu is telling us the very same thing;

2: At full Steady-State in only 18 months, KAT will be a significant Cu producer;

3: I believe KAT shares have put in a floor; and

4: When everyone gets back to the office from their lovely summer cottages, this equity will be off to the races again;

So with that said, today I'm a buyer again at 81c.

These are my views only. Thanks for reading in.

[Katanga68]

Hey Topdop, I respect your opinion so i have a sincere question. "Do you think the US Justice Dept's involvement is holding back this stock?" "Do you think they could stop companies from dealing with Katanga?" Thanks

[Cobaltfinder123]

Kat has a solid contract to Glencore of selling. But i guess the US Justice dept could interact and make it hard for Glencore to sell the material if they find corruption? 

[Katanga68]

I don't think it will amount to anything more then a slap on the wrist but I was wondering what was keeping this sp down when most issues have been dealt with>

[topdop]

@Cobaltfinder123, yes they do, but I don't really believe this is a KAT problem; it''s a GLEN problem. My observations are: KAT is not under investigation, GLEN is. The US Justice dept investigations will take years. Ergo, and because there will always be a market for KAT's metal production, whether they sell to GLEN, or whether they sell directly to Chinese factories/EV auto

[Sogosohubidu201]

The answers to both of your questions are NO.  Historically, Glencore had been accursed for many wrong doings, but not for any of these cases Glencore had ever been convicted.  Glencore had been a very shrewd operator and always covered their butt in difficult business environment.  This time should not be different.  This investigation by US will take many years to complete