Katanga Mining Ltd Ord KATFF

Balance sheet analysis

[organeer]

Has anyone done a simple balance sheet analysis?

If Katanga's debt gets wiped from ~7B down to ~1.6B, it is in an even better position than it was in 2017-2018's cobalt prices.

Katanga's total assets including facilities and mineral rights are well over ~4B in the latest earnings release.

Just one point of view.

[InternalAudit68]

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[Sogosohubidu201]

It will not be difficult to get to 30 cents range, probably by the end of next year or 2021, with about $18 billions market cap. Glencore still leaves some debt in the KAT balance sheet instead of taking this opportunity to eliminate all debts for very cheap shares tells me that Gloencore may leave KAT alone for a while. It was huge stupid mistake being in this mess. It will also be stupid to sell

[autofocus111]

I see GLEN moving to take out KAT quickly after the RO closes. And if I had to venture, I'd say they'll get if for not much more than where it's currently trading. Dead money IMO.

[organeer]

Complete speculation here, but if you read the prospectus, they described how "CIBC" advised them on different steps, and it sounds like it was CIBC who told them that this RO was a way to proceed to extinguish the debt. This also means the traders at CIBC may be buying KAT some KAT shares? I don't know for how long but the big 5 banks definitely have active managers who are doing

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[Sogosohubidu201]

10% of 2 billion shares (actually 1.9 billion shares) is 200 million shares instead of 20 million shares.

[organeer]

you are totally correct. Critical error on my part. Anyway, costs CIBC ~26 million to guarantee GLEN  cannot overtake minority shareholder point. Then, this is well before the RO in which case they would have to dump waay more. SO definitely less likely. Side point: If you're thinking the volume of trading might be too low for something like that for CIBC to pull off, recall that CIBC or

[Sogosohubidu201]

Thanks @ organeer : (Side point: If you're thinking the volume of trading might be too low for something like that for CIBC to pull off, recall that CIBC or any other institution, which isn't GLEN, is able to have a go at the rights that were not exercised by other minority shareholders before being absorbed by GLEN. ) Really? can you confirm that? So CIBC or any other institution has

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[organeer]

These are the sections that I was referring to, but please correct me if my interpretation is wrong. I've already been corrected once today and that is good for me: The Rights will also entitle any Shareholder who exercises in full the Basic Subscription Privilege attached to their Rights to subscribe for additional Common Shares (the "Additional Common Shares"), if available