Potential Upside of WKT - Expandable Graphite, page-641

Welcome @vooose

Happy to provide some insight.

First of all.

Best to not compare SYR to WKT as we are in 2 very different markets.
Our Capex and Working Capital costs are much lower.
Our plant size smaller but more profitable.
Our plant build time will be under 12 months.
Our volume of ore to be processed is way Way WAY less than SYR and far more profitable.
SYR in the lowest Battery Grade Market and WKT in the PREMIUM $$$ Expandable Market.​

SYR - still not making a profit and burning cash and still a way off before they break even.
IMO that will occur when they can produce 20K T of BAM (Battery Anode Material) or double their output and with a rise in battery grade graphite prices.
All Battery Grade Players will end up having to produce BAM to prop up their projects in future.

WKT on the other hand will be profitable immediately after the plant is built as the Free Cash Margins make WKT highly robust and profitable and the Debt Pay back period is within 24 months due to our LOW Capex and Working Capital requirements that is ONLY achievable because we are in the Premium $$$ Expandable Market. (NO WAY would it be achievable if WKT were in the lowest priced Battery Grade market.)

The added bonus is that, as the graphite prices rise it will simply mean WKT will be even more profitable, a highly desirable situation to be in and that will be rejoiced by the company and us shareholders. : ))

A Typical Bean Counter Commercial Banker thinking you need to lock in a floor price is just pure ignorance and harmful to all graphite players when global demand is about to surge and collide in all the graphite sectors.

The Binding Term Sheets (BTS) do have a price mechanism built into the agreement that trigger the BOA.
The BTS will turn into a BOA as the BTS stipulates - this has been stated for 1 BOA to be 1 month before the order and another is looking to be 6 months before the order. Pretty straight forward.

WHY - because its fair and reasonable to both the buying and selling parties, ESPECIALLY more so that Graphite prices are only looking to increase in prices over the coming 10 years and that will be in both the Battery Market and the Expandable Market. FYI - There is 2 markets now and the Expandable is way Way WAY more profitable than the Battery market will ever be.

Why would any company want to lock in their prices today being 12-24-36 months out from production and LOSE their UPSIDE of rising graphite prices. That would be a very foolish and ignorant of any bean counter to insist upon as shows a serious lack of understanding and more due diligence and research is required.

These would be the same Typical Bean Counter Commercial Bankers that thought SYR was going to make a profit on the lowest pricing on the Battery Grade Materials as a stand alone product.
*shaking my head LMAO*


Team WKT has not entered into a price floor as you call it, it is more of a mechanism formally agreed upon by both parties to determine pricing.

You may not be up to speed with WKT if your concerned with development timelines. WKT have started with early mobilisation on site occurring and the long lead items have been ordered and once funding is announced WKT will be producing in less than 12 months!!!!!!!!!!! (Not 24-36months)

Having BOAs clearly demonstrates a willing buyer for a said product. A willing buyer who is content to be a long term business partner to WKT with fair and mutually responsible pricing mechanisms that make commercial sense to all.

Your questioning of the purpose of a BOA rings alarm bells if you do not understand their purpose as any Company, shareholder, investor knows the need for BOAs to enable financiers to CLEARLY see that a buyer is now ready and waiting and most importantly it REDUCES THE RISK, which you should know being a former commercial banker is the REAL GAME.

WKT has catapulted herself forward in so many ways with all the Milestones achieved this year, the updated DFS, Pit shell remodelled, Grades increases to 17.9% LOM 24 years, with a cutoff 10% TGC, along with the 3 BTS/BOAs etc.

Perhaps worth checking the 3 BOAs (3 in 9 days) and if you actually understand the Expandable Market you will see the strategic importance of each of the deals. 2 of the BOAs are expanding their Expandable Business with 1 actually building a brand new facility.

WKT growing with the expandable market and not disrupting the market.

BOAs scream confidence IMO, confidence to shareholders, confidence to other BOA Parties, confidence in the graphite industry, confidence to the graphite investor and confidence right through to the analysts, researchers, brokers, financiers and the market in general.

WKT now not so hung up on BOAs as our initial SELF IMPOSED startup is 40K TPA and we have more than enough demand with HOAs and MOUs graphite business exceeding our 40K TPA and will fast track WKT to be doing 80K TPA in due course.

WKT pretty much has ticked off all the development boxes and de risked the project at every juncture and the last thing we would want is some ignorant commercial banker requesting WKT to lock in low prices today that would harm the company and shareholders upside as graphite prices are only set to rise.

Please do tell how you would expect to secure finance for the project with out all the milestones and BOAs in place. If you believe you could secure FAVOURABLE finance for the project without all the milestones and BOAs etc in place first, then you my friend would be an absolute champion unless your giving away huge chunks of the project or excessively diluting shareholders.

Our only hang up NOW is obtaining Favourable Funding Terms.

Will be very interesting to see which of our BOA parties become cornerstone investors.

Will also be very interesting to see if Jinpeng participate further seeing as they have now turned their $1M investment @ 7c and have made over 400% on their first investment that has added $4M in value over and above their investment.