Potential Upside of WKT - Expandable Graphite, page-599

Former early stage SYR investor here and woah I just stumbled on this long-ass thread.

I see all the points listed for why WKT should achieve funding, and I suppose this is where I’m a little confused.

As a former commercial banker, no pre-finance/construction BOA’s are worth the paper they are written on unless they contain a price floor, as far as I can see from WKT’s BOA announcements, no price floor has been agreed. With no price floor, no banker would consider the BOA as part of the lending criteria to obtain mine construction finance.

WKT don’t need to disclose the price floor, but It would assuage many shareholders that finance is moving if they had an agreed price floor.

But here my confusion deepens.

Assuming they have entered into an agreement with a price floor, why would the team at WKT enter into these agreements with a price floor so early in the development pipeline?

Given the lead time to production, it would pose considerable price risk to both the offtake partner and producer.

SYR let investors know it wouldn’t be signing agreements early as it would compromise returns.

So, I suppose my open question to the forum is: If BOA’s are unable to assist with achieving mine construction/development finance, then what purpose to they serve?

This is perhaps evidenced by all the players in the graphite space who have obtained BOA’s/MOU’s but not the reciprocal contraction/development finance.

My opinion: Best I can see; they seem to be largely marketing exercises, used to leverage the share price and develop relationships which provide insight into the macro graphite market.

The market seems to be hung up on BOA’s and other things that don’t matter at WKT’s stage of development, while management have not secured financing.