Portfolio Haircut, page-22

Hi Mikrokosmos IMO Tanz 1 is indeed Walkabout Resource so hats off for SVM management releasing a graph that is prepared to do a proper comparison.Most times with out fail WKT is left off for good reason. WKT have similar ROM at $352 at 40,000 TPA. Not sure though with capex being listed at almost 50 million?

What is noted is that in early studies Walkabout and others have reduced there projections and revenues at each stage noting SVM at feasibility stage while others have a DFS to work from.

IMO Walkabout Resource in hard rock as apposed to clay is still a more profitable mine.Current expectations for basket price are $1200 where as WKT achieved $1565 at ten year market average lows.Even this although stress tested WKT margins are $305 per tonne mined better off for Walkabout. The other factors to consider beyond the DFS study are grade upside,plant run time of 11 hours and plant capacity to ramp up at no extra cost. The redundancy of plant at no extra cost could be quite significant at 3000 TPD as apposed to 1000 TPD.



Walkabout Resource also have product suitable for dual markets where refractory just does not get a mention. With Lindi distribution all our graphite is suitable for premium expandable markets with markets only limited by a reliable supply. Then we have niche markets for super jumbo...With an IRR at 86 % and pay back in 22 months based on a watered down DFS high quality graphite rated best in class these are enviable numbers.

Good luck to any one doing research and peer comparisons. There probably is some good little gems out there but going to take a lot top this little wonder.A diversified company with 10.1 million to advance towards greatness.

Cheers Croc