there is also the option of share buyback, just something that...

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Stirer

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04/05/24

16:40

Post #: 73666141
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Originally posted by Croc-file: ↑

You might add spid81 the poster spoke with a company representative and asked for a clarification…Where as in you case you refused to and didn’t seek clarification…

Below not relevant to discussions with company representative…

The Gemcorp/WKT (Group) are required to maintain 2 Quarters of funds available before a cash sweep can occur…We also have the possibility to refinance the GEMCORP loan at a lower rate where GEMCORP will be keen to take advantage on a regular basis for a cash sweep…A 30/70% sweep available

In light of this the plant is operating very admirably in early stages…There was plenty of negative narratives but none were reported…

Imo yes the debt loan will be refinanced early once in production…Recovery rates will be improved in later months while flake size retention will be as expected and purity within spec…

Let’s have another look at cash sweeps by the (Group) Both WKT and Gemcorp benefits from a cash sweep meaning lots of funds will be available at nameplate capacity…

If we were to break this down into a Quarter cash sweeps it may look something like this…

10,000 product tons per Quarter is 40,000 ton per year.10,000 ton at projected US$1200 free cash margins is US$12 million and AUS $18 million a quarter. WKT’s market cap is AUS 80 million. If free cash sweeps of $Aus 8 Million are paid to Gemcorp leaves $10 Million
for quarter repayments of debt payments and remaining free cash sweep payments. (Loan repayments at Gemcorp rates $1.25 million per month) which leaves roughly $4 million for each cash sweep per quarter to WKT.

With 680 million shares on issue $AUS4 million divided by 680 million shares gives .006 per share earnings per quarter

If you had 1 million shares this would in theory give you 2.4 cents earnings per share x 1 million shares and possible cash sweeps of $6000 per quarter…

The question is if the company does achieve name plate value should long term holders be rewarded with some of those profits and cash sweeps earlier on…While I’m all for drilling Amani if it’s good enough for Gemcorp to want regular cash sweeps the same should be expected of long term holders expectations…

Regards Croc

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there is also the option of share buyback, just something that has been mentioned on x.

WKT Price at posting: 12.5¢ Sentiment: Buy Disclosure: Held
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