KAT Exploration Inc (KATX)

[Kadin]

Wrong Abe! $796,280 US Dollar for 9 mos...

Based on the Company's estimates...


33,000 estimated ounces per year
12 ÷ mos
--------------------------
2,750 = monthly

9 × mos
--------------------------
24,750 = 9 mos

1,600. × (est. price of gold)
--------------------------



39,600,000.
13,860,000. - Taxes @ 35%
--------------------------
25,740,000 =

5,940,000. - Royalties @ 15%
--------------------------
19,800,000 =

7,300,000. - Estimated Equipment Costs Ghana
--------------------------
12,500,000 = Sub-Total


4,500,000
6,500,000 +
--------------------------
11,000,000 - Capital Needed per 10-K
.......................Phase II and III for HC


12,500,000
11,000,000 -
--------------------------
1,500,000 = Total...


That is 'U.S. Dollars'...

You need to convert the Ghanaian Cedi to U.S Dollars...


Sunday, May 13, 2012

1,500,000 Ghanaian New Cedi = 796,280 US Dollar

http://wwp.greenwichmeantime.com/time-zone/africa/ghana/currency-ghana/index.htm



Must watch those Foreign Exchange Rates and...

Mining companies in Ghana can only keep a small portion of cash in an offshore account...

That's the attraction for these type of operations, but do the math on the exchange rates and weigh it against any current DEBT and IMPENDING FINANCING... Then post projections against an A/S yet to enter the market. Watch how the market reacts.


Ghanaian Cedi Exchange Rates...

http://fx-rate.net/GHS/


http://www.tradingeconomics.com/ghana/currency

USDGHS - Ghanaian Cedi Exchange rate

The Ghanaian Cedi exchange rate depreciated 2.84 percent against the US Dollar during the last month. During the last 12 months, the Ghanaian Cedi exchange rate depreciated 21.29 percent against the US Dollar. Historically, from 2009 until 2012 the USDGHS exchange averaged 1.50 reaching an historical high of 1.82 in April of 2012 and a record low of 1.39 in May of 2010. The Ghanaian Cedi spot exchange rate specifies how much one currency, the USD, is currently worth in terms of the other, the GHS. While the Ghanaian Cedi spot exchange rate is quoted and exchanged in the same day, the Ghanaian Cedi forward rate is quoted today but for delivery and payment on a specific future date. This page includes: USDGHS - Ghanaian Cedi Exchange rate, historical data and news.

http://www.allghananews.com/business/2023-ghanas-cedi-now-worst-performing-currency-in-africa


Ghana’s Cedi Now Worst Performing Currency In Africa

Created on Thursday, 19 April 2012 21:41

The value of Ghana’s cedi will decline by another 9.2 percent in 2012 following record depreciation last year, said a report by Bloomberg on Wednesday, which will make the cedi the worst-performing African currency over the last two years

Though Ghana’s economy managed to expand by 14.4 percent in 2011 spurred by oil production, demand for US dollars by local producers to buy equipment and raw materials sent the value of their local currency tumbling; with rising imports and a looming elections set to sap confidence even further, claimed the Standard Bank Group Ltd, Africa’s largest lender.

On Wednesday, the cedi once again extended its record slide against the dollar with the dollar-cedi rate hitting 1.8210 by 1400 GMT, after opening at 1.8170. According to Kobla Nyaletey, the Chief Trader at Barclays Ghana, the cedi’s losses this year had amounted to more than 11 percent against the dollar.

"The Ghanaian market is a flow market. The market responds best when it sees dollars," said Nyaletey in an interview with Reuters, after dealers ignored a move by the Bank of Ghana last Friday to raise its benchmark interest rate to 14.5 percent to stem the currency’s depreciation.
“The best method to restore cedi confidence is via higher interest rates, but as the examples of Kenya, Uganda, Tanzania and Nigeria have taught us, Ghana may still have some way to go to adequately switch the negative market psychology,” added Stephen Bailey-Smith, an emerging- market strategist at Standard Bank’s office in London"

Bank of Ghana’s governor Kwesi Amissah-Arthur admitted that the declining cedi was “a major source of concern” that required “decisive policy measures,” though he also criticised naysayers who were constantly predicting the fall of the currency.

“I don’t understand why people are talking down the cedi. This does not help. The Central Bank is responsible for 90 percent of foreign exchange transactions, and some of these traders who quote high [exchange] rates operate in a minor segment of the market,” said Amissah-Arthur to The Business And Financial Times in Africa.

Amissah-Arthur added that the central bank may now attempt to lower the required single currency net open position (NOP) of banks in order to improve the foreign-exchange supply by banks to the market, which would hopefully help to reduce the demand for foreign currency and also boost the value of the cedi.

The Bank of Ghana will be closely monitoring developments and will not hesitate to take additional measures if deemed necessary, assured the central bank’s governor, who also expressed his intention to minimise the risks of inflation in the country.

Consumer inflation in Ghana rose to 8.8 percent last month, following February’s 8.6 percent. Ghana’s foreign reserves has also declined from $5.4 billion last December to just $4.6 billion. But the nation’s economic growth is still expected to be robust this year, with Ghana’s Finance Ministry forecast 9.4 percent growth after oil production began at the Jubilee oil field in 2010.


Read more: allghananews.com - Ghana’s Cedi Now Worst Performing Currency In Africa

http://www.allghananews.com/business/2023-ghanas-cedi-now-worst-performing-currency-in-africa#ixzz1slsHye8C


Post with information pertaining to the numbers used above...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=75520168

So this year will not be profitable...
Corporate Salaries and payroll expenses are not calculated above.

They can only write-off a portion of their Taxes and they still have two Countries to file. i.e., the U.S. and Canada.

However, you must also consider the Ghanaians have intentions of increasing Royalty payments and Taxes this year.

Suffice it to say...
Any number you come up, cut it in half and then convert from Cedi to U.S. Dollar.