1. Pybar would have whacked in an inflated progress claim for June. I have worked in a contracting business and the standard procedure is to over inflate your progress claim when there is a sniff of a dispute so that you can settle at a higher amount. A progress claim is not an invoice and is not payable until validated under the contract KPIs, notices etc. Security of Payments legislation only gives protection against the valid portion of the progress claim.
2. the audited accounts show that they have accrued the full progress claim rather than a management valuation which is extremely conservative accounting. I reckon you can knock 2 to 3 m off this liability
3. Current assets less current liabilities do show a small deficit but adjusting for the overinflated Pybar liability dissipates this issue
4. poor contract performance is a valid reason for contract termination and so damages aren't out of the question
5. the gold in the ground will keep funding WPG
6. they just need a CR to progress exploration and get the strategy of expanding Challenger, Tarcoola and drilling Tunkilla back on track
7. the audit report referring to a material risk is standard for small mining companies after making a loss and flagging a capital raising but the auditors did not qualify and so this is not an issue
8. sure a profit, no dispute and not pulling the earlier CR would have been preferrable but the world is not ending and neither is WPG
WPG Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
