Potential Upside of WKT - Expandable Graphite, page-2448

Hi Panda Boon time summed it up perfectly IMO...

Quote:Regarding TZ 16%, this has been factored into their DFS numbers. I had a chat with Alan Mulligan about March this year regarding this, this 16% tax has been around for 20+ years, and has only been Enforced on a few occasions. It is basically a provision for the government to recover some money if they had hit the public purse for some reason. Eg, upgrading power grid, roads, any public infrastructure impacted by the mining activity.

So there is a reasonable chance wkt might not have to pay this, in that case, it would be additional upside to the DFS numbers.

The 16% Tax is it is factored in...

The tax may not be applied....No other peer has done this which is causing anxiety among them...May be reasons for not factoring it in would also require updating the BFS DFS studies which could be detrimental and exposing the true lack of free cash margins of those projects...Vanilla markets underpinning their projects...

Not Walkabout Resource the 16% free carry factored in and still very robust with an IRR of 119 %...pay back period under two years...

Walkabout Resource have no concessions...


Regards Croc