KATX might have great minerals, but lack the equipment and manpower to get them out of the earth. Most investment firms won't recommend pink sheet companies like KATX because they are frequent targets of stock manipulation. If you'd like a reference for that fact/widely-held opinion among investment companies: http://www.investopedia.com/ask/answers/201.asp
"The companies on the Pink Sheets are usually penny stocks and are often targets of price manipulation. They should only be purchased with extreme caution."