Ann: Quarterly Reports, page-15

This Ann answers some questions around current cashflow and where they are at. It also provides some information around Industry Experts and how their reports will be used in any upcoming documents, which is how I thought they would do it. It also clarifies what the Feb 2019 with the IE report was all about. It also appears they have been testing the blend, albeit it is not clear the extent of testing and how this is been used in the Offtake negotiations - certainly, understanding the blend to meet specifications are a key, but suspect the min ore of 1% Co an 2.5% Cu is aimed at ensuring that you can tweak the blend from the various supply sources to meet specifications at all times in the least cost method. The easiness of been able to do that in practice is the key, but suspect having ore feed capability greater than plant feed capability is designed to source product from those suppliers that makes achievement of the blend more easier.

But I personally find this Ann in a way a step backwards. I always found the ultimate value of WFE to be in the long term strategy by securing product from its own tenements in replacement to the short term strategy where they treat someone else’s ore. By making the strategy now akin to a Toll Processor IMO this probably reduces forward looking profitability - the purpose of the short term strategy IMO was getting some proceeds to then explore and develop your own tenements where greatest profit is available and thus replacing the short term strategy. Developing your own tenements also makes it easier to ensure you provide the right blend to meet Offtakes because sourcing from a number of sources means you are constantly playing around with the blend to meet specs, rather than having your own pits where you can control and attain the blend formula more easier and more cost effective.

I recognise they they say they will use the market to buy other tenements, but now is the time to buy those tenements in the current market. When the market turns my view is the price of any tenements will increase, and opportunities to buy good acreage reduce, and certainly my view all along is WFE acting as akin to a Toll Processor or Contract Manufacturer only works if your profitability is squeezed because if you seek too much profit then the resource owner will simply build their own facilities. This is why the WFE short term model IMO is attractive to potential suppliers, and given the amount of ore available to WFE IMO those suppliers probably do have the long term option of building their own facilities - why, the end buyer you enter into an Offtake with WFE you would want to be ensured that the supplier of the ore has enough ore for your needs because if not well an Offtake will not be entered into long term. That is longer term WFE will maximise profit, and the value attained from your processing facility, by providing and controlling the ore in the blend from your own pits - and it does that by using any profit from the short term strategy to explore and develop its own tenements.

maybe I am wrong, but will be interesting how the Prospectus deals with this issue of short term and long term profitability in the context that WFE will need to buy tenements at some point from the market.

All IMO IMO IMO