Potential Upside of WKT - Expandable Graphite, page-725

@42trader

Proving, meeting, reaching, achieving - all the same words for fundamentally achieving your forecasted free cash flow/margins.

So without a ready made product you can’t prove how much money you can make, bat crazy again.

We don't disagree about that, I have said you need to sign these agreements closer to production, and this is from one of the WKT announcements posted above:

https://www.wkt.com.au/wp-content/uploads/2019/05/190402_Binding-Offtake-Secured.pdf

• Although a framework for the pricing mechanism has been discussed,the final pricing agreement will onlybe agreed at a date, at least one month prior to delivery of the first batch of concentrate.
• These mechanisms give the Company flexibility in delivering excess product above the agreed minimum to other customers should demand result in improved prices at the time.

lets follow that one, without product you can not prove how much you will make, but without finance you can not make product, so the financier who will want to see numbers like in a DFS have no proof of profit/loss because you have not produced anything yet. But if you are producing product to prove profit/loss you don’t need finance as you are already producing.

• That's not my argument, my argument is a non-price BOA won't help with a mine finance application.
• The answer to your statement is: you make fundamental assumptions about your product based on grade etc and extrapolate pricing as best you can which forms part of your BFS. Final offtake agreements closer to production reflect/prove your pricing research. What is controversial about this?