KAT Exploration Inc (KATX)

[Matej123]

As you read the words below you will discover what my friend " bird" did find yesterday. I would first like to have you start the music track from 2001 A Space Odyssey....... http://www.youtube.com/watch?v=VxLacN2Dp6A&NR=1&feature=fvwp Did you wonder what all this was about for a full year?....Well now I believe we know !! -----01/19/2010 9:15AM KAT Exploration Retires Additional 300 Million Shares, ****Engages New Consulting Group,**** Dual Listing and Carbon Credit Assets on th
01/15/2010 10:30AM Kat Exploration Secures up to $5 Million Funding With 50 Million Restricted Shares and Retires REG-D 504
01/14/2010 12:10PM Kat Exploration -- Retires and Eliminates 2 Billion Shares From Treasury
----- If this is true you can forget about going to the Moon we are going to the outer limits and will wake up in a whole new World full of wonderful things maybe two Moons ! #1 We all know that David M. Barns was added to the Kat Gold holdings team yes?. And we all know David M Barnes is a Officer of China Direct yes? ...Yes!.. Well the " bird" while searching through the filings yesterday of China Direct he came across what I believe to be a Golden Nugget ....many nuggets actually #1. He found the link to the 3rd quarter China Direct conference call while listening to the CDII 3rd quarter conference call you realize that the "Consulting" portion of CDII is a business that helps Mining Company's do many things but most importantly their goal is to help them JV Joint Venture with Larger Mining Company's. This part of their business is where their income comes from. #2. China direct discloses in the conference call that it has 2 new clients I.E. Katx and possibly Kat Gold as well "not positive about that "g" part. David Barns is the CFO of KATG that position is often taken by a large investor in to a much smaller company "especially one on the pinks" like I believe happened with Kat back in January. #3. In the Q: and A: portion of the call you will realize that China Direct is expecting to receive a windfall of revenue not just from it's consulting division .....but specifically from it's .....NEW........ CLIENT.........one of which I believe has to be Katx......All the links are below ...........................................China Direct Industries, Inc. (CDII) F3Q10 (Qtr End 06/30/10) Earnings Call Transcript August 12, 2010 5:00 pm ET

Operator

Welcome to the fiscal 2010 third quarter earnings conference call for China Direct Industries. For those of you who may be new to the company, China Direct Industries trades on the NASDAQ global market, under the symbol CDII. China Direct Industries is a U.S.-based company, with operations in China in two core business segments, magnesium production and distribution of basic materials. The company also provides advisory services to China-based companies to assist them in competing in the global economy.

Headquartered in Deerfield Beach, Florida, China Direct Industries operates nine subsidiaries throughout China. China Direct Industries provides a direct link between Western investors and companies in the People's Republic of China. For more information on the company, please visit its website, at www.cdii.net.

Our call today is hosted by Mr. Andrew Wang, CFO; and Richard Galterio, Vice President. Additionally, Dr. James Wang, CEO and Chairman, will also be available during the Q&A session that will follow management's discussion of the third quarter ended June 30, 2010.

At this time, I would like to refer to the Safe Harbor Statement under the Private Securities Litigations Reform Act of 1995. During this conference call, management may discuss financial projections, information, or expectations about the company's products or markets, or otherwise make statements about the future, which statements are forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made.

These risks and uncertainties are detailed in the company's filings with the Securities and Exchange Commission, including its most recent Form 10-K filed on December 31, 2009.

At this time, I would like to introduce Mr. Richard Galterio, Vice President of Investor and Public Relations of China Direct Industries. Thank you. Mr. Galterio, you may begin.

Richard Galterio

Thank you, operator; and all of you who are joining us for our fiscal 2010 third quarter conference call.

China Direct Industries recorded revenue of $31.9 million for the third quarter of fiscal 2010, ended June 30, 2010. This was up 64% from the $19.5 million recorded in the comparable period in fiscal 2009. Our net loss in the quarter, now up to $1.1 million, or a loss of $0.04 per share, compared with a loss of $2.9 million or $0.12 per share in the third quarter of fiscal 2009.

Revenue was $77.3 million for the nine months of fiscal 2010, compared to $79.1 million for the comparable period in fiscal 2009. The net loss for the nine months ended June 30 now rose to $412,000, inclusive of $1.1 million in stock-based compensation, compared with net loss of $14.5 million in the same period of 2009. Our net performance in the first nine months have significantly improved, resulting in a loss per basic share and diluted share of $0.02, compared to a loss of $0.61 in the comparable 2009 period.

I am also pleased to report that we continue to see a market pickup in activity in all of our segments, particularly in magnesium and consulting.

In our magnesium segment, I would like to highlight several important trends. First, the volume output at our current magnesium operation was approximately 6,000 metric tons. This is up 49% from the same period in 2009. Second, volumes increased by 42% sequentially from last quarter.

In our consulting segment, we had particularly strong performance, with revenue up 123% from the same period in 2009. And I would also like to highlight some accomplishments in this area. First, we added two additional clients, bringing the total number of clients we service to seven. We are confident that these additions will lead to substantial increases in transaction revenue for assistance in areas like mergers, capital formation, and business development.

In our basic materials segment, we continue to see a market improvement in chemical operations, where revenue was up 59% from the same period in 2009. Additionally, as we have categorized our trading operations in this segment, the startup costs associated with trading are now reflected in this segment.

As we move forward into the remainder of the year, and soon into fiscal 2011, it is important to emphasize a number of key overall factors, which we believe will contribute to our success. First, our balance sheet remains strong, with $14.4 million in cash, a $1.5 million increase from our September 2009 year end, and still with negligible long-term debt. Second, we have over $37 million in working capital to support our operations as the business environment improves and we forge new trading opportunities in South America and Mexico. Third, the metrics in our magnesium segment continue to improve, with our working capital investments now starting to deliver top line growth, as more production is coming online. Additionally, our Ruiming acquisition will enable us to service our customers with a wider variety of products to further entrench our IMG brand. Fourth, we have parlayed our consensus with a number of consulting clients in the first half of the year into the addition of two new clients, as I have mentioned before, with additional prospects for the coming quarters. It is important to note that transactional business in consulting can yield very high margin revenue, as was the case in 2007 and in 2008, where consulting was the largest driver of earnings.

Our company remains in a strong position to re-accelerate growth, as the business environment in our business segments improve. We will continue to execute on our strategy of being a global leader in the magnesium industry, and look to opportunistically grow in a prudent and cost-effective manner.

I would now like to turn the call over to our chief financial officer to discuss this quarter in more detail. Andrew?

Andrew Wang

Thank you, Richard; and welcome, everyone. For the fiscal 2010 third quarter, China Direct Industries recorded consolidated revenues of approximately $31.9 million, up 63% from $19.5 million recorded in the comparable period of 2009. Gross profit in the period was $2 million. The total operating expenses were approximately $3.3 million in the quarter. Our net loss for the third quarter was $1.1 million, which includes $412,000 of stock-based expenses, as compared to a loss of $2.9 million in the June 2009 quarter. The net loss applicable to stockholders was approximately $1.1 million, resulting in a basic and diluted loss per share for the third quarter of $0.04. On a weighted average basis, there were 20.8 million basic and diluted shares outstanding.

Looking at our core magnesium segment for the second quarter, revenues from our magnesium subsidiaries was $14.3 million. This represents a 56% increase from the revenue of $9.2 million recorded in the June quarter of 2009. Overall shipments reached 5,967 metric tons, up 49% from 4,007 metric tons in the same quarter in 2009, which included 437 metric tons from discontinued operations. This is also up 42% sequentially from 4,250 metric tons shipped last quarter. The average sale price was $2400 per metric ton in this quarter, up fairly from the second quarter but down from $2520 in the June 2009 quarter. Stock prices are currently about $2400 per metric ton. The overall increase in revenues was a result of an increase in demand, resulting in increase of volume in a stable pricing environment.

Revenue from our consulting segment increased to $700,000 in the fiscal 2010 third quarter, up 142% from $307,000 in the June 2009 quarter. Our net loss for this segment in the third quarter was $400,946, which included all corporate overheads and expenses, a substantial improvement from the loss of $1.8 million in the fiscal 2009. Revenues in our consulting segment varied depending upon the level of service, especially in addition of new clients. As previously stated, we have added two new clients.

Our basic materials segment revenue totaled approximately $16.9 million in the fiscal 2010 third quarter, an increase of 69% compared to the $10 million recorded in the June 2009 quarter. Our basic materials segment generated a gross profit of $802,000 compared to $527,000 in the June 2009 quarter. Our basic materials segment generated a net loss of $487,000, which includes the costs associated with our accreting operations launch project in South America and Mexico.

In the third quarter, we saw an overall improvement in business activities in all of our segments, and we believe our business will improve substantially in the fourth quarter and into fiscal 2011. We continue to put substantial efforts in improving our internal control, taking a conservative approach to our balance sheet, and positioning our operations to be more streamlined and focused. We believe the significant sequential improvement in top line performance and improving trends are evidence that we are going in the right direction. We continue to believe our current staffing levels are appropriate, and our subsidiaries in China and increases in staff at our facilities when they are reinitiated in the coming months. Any other additions or receptions of that will reflect in the market.

We will continue to look to reduce costs when necessary, and maintain inventory levels appropriate for our level of businesses, which is why we can build inventories in our magnesium segment, and look to expand our product offerings. Our balance sheet remains strong, and we believe we are well positioned for the future. We continue to act with our specific initiatives for the future, as we look to grow our businesses, including the further consolidation of our magnesium operations, as previously discussed. The remaining acquisition is a first significant fast work in that consolidation process, as we view our IMG brand for the future.

At this time, I will return the call back over to Richard for some closing comments. Richard?

Richard Galterio

Thanks, Andrew. Our results for the fiscal 2010 third quarter reflect an improving overall environment in our various business segments, coupled with the steps we have taken to revamp our cost structure (inaudible) downturn of our business.

We have reaccelerated top line growth and remain steadfast in the belief that bottom-line results will improve dramatically as we head into our historically stronger quarters ahead. Gross margins continue to improve in magnesium, where we have made our most substantial investments for our future. As we have previously stated, the global environment in our business is improving, and we are steadily making progress with our IMG pricing strategy to create more long-term stability and order flow, and pricing, enabling us to secure large end customer orders in our magnesium segment.

Our magnesium customers in various industries, including automobile manufacturing, aluminum alloying, and steel production are strengthening, and our volumes are increasing, and prices slowly trending upward. We are restarting additional facilities and expect more significant volume increases in the current quarters. Our successes in consulting over the last six months have increased our awareness and led to additional clients, with a number of opportunities in front of us in the near term. We believe there are a number of transactional opportunities capable of being closed in the fourth quarter, and are working diligently to bring them to fruition.

I would also like to highlight that we have entered into several sale purchase agreements to provide various types of ore into China from South America and Mexico, and we continue to anticipate that trading will begin meaningful contribution to revenue in fiscal 2010 and beyond.

While we are pleased with our efforts, we have only seen a slight improvement in magnesium prices over the course of fiscal 2010. The rate of increase has been somewhat slower than forecast by industry experts. We expect our outlook in magnesium to continue to increase, and that will be coupled with stronger performance, which we anticipate will come from our consulting and basic materials.

We now see our overall revenue ranging between $120 million and $130 million for the full fiscal year of 2010, with net income ranging between $6 million and $8 million. This guidance is predicated on our ability to close certain opportunities in the fourth quarter, as well as to complete delivery of contracts in magnesium and basic materials. We continue to believe that there will be an improvement in prices, as demand builds for our magnesium and other business segments grow. We intend to provide updates to our guidance on a quarterly basis as necessary.

In closing, I would like to emphasize that we are confident that with our strong balance sheet, and over $14 million of cash, with $51 million in shareholder equity, our shareholders have a strong foundation for the future.

Additionally, the investments we have made in magnesium, and building our trading operations, coupled with the client wins in our consulting operations, put us in a solid position to deliver markedly improved bottom-line performance in the remainder of 2010, and into fiscal 2011. We are excited about the improvement in our operations, as well as the opportunities mentioned earlier, and we see improvements in all of our segments. We are steadfast in our belief that we will emerge as a major force in our business segments, and our entire team is working diligently to reach that goal.

Allow me now to thank you again for joining us, and we can begin the
http://ih.advfn.com/p.php?pid=nmona&cb=1267833742&article=41165194&symbol=NO%5EKATX here is the link to the transcript from 3rd quarter confrence call http://seekingalpha.com/article/220351-china-direct-industries-inc-f3q10-qtr-end-06-30-10-earnings-call-transcript here is the audio link http://www.investorcalendar.com/IC/CEPage.asp?ID=160959 Friday CDII had a PR They had a PR postponing the newest. http://ih.advfn.com/p.php?pid=nmona&article=45706934&symbol=CDII CDII has rescheduled its conference call to discuss its financial results for the full year of fiscal 2010 ended September 30, 2010 to Wednesday, December 22, 2010. """..................check this out .......................................................""" the Company will report revenue of approximately $112.7 million for the fiscal year ended September 30, 2010 ------------- The rescheduled call information is as follows:

-- Date: December 22, 2010

-- Time: 4:30 p.m. Eastern Standard Time

-- Dial-in number for US/Canada: [phone]

-- Dial-In number for international callers: [phone]

-- Conference ID: 362947 --------------------------
http://ih.advfn.com/p.php?pid=nmona&article=45706934&symbol=CDII the Company will report revenue of approximately $112.7 million for the fiscal year ended September 30, 2010......................... http://ih.advfn.com/p.php?pid=nmona&article=45706934&symbol=CDII ---------------------------------- MAIN http://www.investorcalendar.com/IC/CEPage.asp?ID=162809
CALENDER OF EVENTS http://www.cdii.net/investor-relations/calendar-of-events
http://www.cdii.net/home
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=46009959
DAVID M BARNS NEEDED MONEY IN SEPTEMBER ...HUMMM WONDER WHAT FOR ??? http://www.sec.gov/Archives/edgar/data/1088787/0001140361http://www.sec.gov/Archives/edgar/data/1088787/000114036110039677/xslF345X03/doc1.xml10039677/xslF345X03/doc1.xml
FORM 4 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

MAYBE APRIL ... /s/ David M Barnes 10/04/2010 ------------------------------------------------------------------------------------------------------ BIG OWL COMMENTS ------------------------------------------------------------------------------------------------- KATX DD:

A little Bird (BMB4) told me about our new CFO who is still a current officer with CDII. That Company is China Direct Inc (CDII) a company who may actually be CONSULTING WITH KATX. It seems an easy step of logic to see a connection to them by KATX due to the Chinese appetite for both base and precious and Rare metals and the fact that a Board Member chose to move over to KATX CFO recently. Why would he do that?

A Conference Call that took place about their third quarter results mentions that they expect to generate very significant income from two consulting agreements that will generate a lot of income in the 4th quarter. I suspect that KATX may be one of the two consulting contracts that they mentioned in the Conference Call: A link to that CC is as follows:

http://www.investorcalendar.com/IC/CEPage.asp?ID=160959
Note: you will have to sign up to listen to the conference call.

The actual conference call at about 6 minutes and 10 seconds into the Business and Financial section mentions two new consulting clients that they now have on board.

There is only question asked and answered in the Q & A section at about 17 minutes and 30 seconds into the conference call they are discussing the increased income from the two new consulting clients (one of which I suspect is KATX).

If KATX has signed a consulting deal with the American company that is working very closely with Chinese companies interested in American and Canadian minerals, then they anticipate that the consulting contracts will generate well over $700,000 (actually significantly more than $700,000 in revenue by the end of the 4th quarter. That means the deal must be done before the end of December 2010.

If this info pans out to be true, then there is a real need for the parties involved to complete everything well before the end of the year / month. To me that means there is little time left for anyone to scarf up the remaining low priced KATX shares next week.

Just a word to the wise.

The truth will set you free!