Ann: Update - Proposed issue of securities - WAK, page-9

From my reading of the 2020 Prospectus, when year(s) are stated, they are calendar years, unless they are specified to be financial years, or prefixed “FY”. For detail, read the Prospectus, but in broad terms the key dates and events relevant to WAK's then-planned progression were listed as follows:

1. 2020 – Kwinana in production.
2. 2022 Wickepin Stage 1 in Production.
3. 2023 Wickepin Stage 2 production equipment is installed , which will bring the operating nameplate capacity to a total of 400,000 tonnes per annum by the end of 2023.
4. 2024 Stages 1 and 2 in production, and kaolin production of 400,000 tonnes per annum by the end of 2024.
5. After 2024 The Company's objective is to continue to add on 200,000 tonne modules with the implementation of each subsequent stage subject to a range of factors, including demand, funding and approvals.mce-anchor

I am unsure when production at Kwinana started, but it being a small-scale pilot plant it is not worth sleuthing for a date.

Point 2 was achieved, albeit in late 2022 because of Covid-linked delays.

Point 3 is likely to be achieved by the end of 2023 according to the most recent CR Presentation.

Point 4 is likely to be achieved, because WAK has experienced high demand for K99 kaolin at better prices than expected when the Prospectus was published.

Point 5 is now more certain, IMO, and Management has hinted at 1 million tonnes a year, which would require five plants operating at nameplate capacity My gut-feel is that WAK will expand by one plant a year, so five plants by the end of 2026, when the rail link will be reconnected, and the fifth plant would be operating at nameplate capacity a year later.

On the rail link being reconnected, WA Government has announced 2025, but WAK has mid-2026 in mind.

This post reflects my thoughts, and they are bound to be wrong. I would prefer WAK to progress to a million tonnes a year slower, but without further share dilution. In fact, I would be happy if the SP stayed below 25c until November 2023, and most of the options expiring then are not taken up. From my perspective, there is not much purpose increasing revenue on a company basis and diluting EPS by issuing more shares. Management probably has a different agenda.

I'll not subscribe the current CR, because I bought another 100,000 late today at 15c, which was confirmed by eMail – Westpac Share Trading <[email protected]> Attachments 15:56). Strangely, there is no record of that purchase reflected in Westpac's “course of sales” . The paste below looks fine in the draft, but HC's preview seems to be cluttered with crap that makes no sernse to me, so I'll let it present as it is. Ignore the repeated reference "mce-anchor"

	mce-anchor Time​
1
2	mce-anchor Price ($)​
3	mce-anchor Volume​
4	mce-anchor Value ($)​
5	mce-anchor Condition​
6	mce-anchor 4:10:16 PM​	mce-anchor 0.145​	mce-anchor 1​	mce-anchor 0.145​	mce-anchor
7	mce-anchor 4:10:16 PM​	mce-anchor 0.145​	mce-anchor 21,825​	mce-anchor 3,164.625​	mce-anchor
8	mce-anchor 4:10:16 PM​	mce-anchor 0.145​	mce-anchor 7,000​	mce-anchor 1,015.000​	mce-anchor
9	mce-anchor 3:56:02 PM​	mce-anchor 0.150​	mce-anchor 1,174​	mce-anchor 176.100​	mce-anchor
10	mce-anchor 3:14:33 PM​	mce-anchor 0.145​	mce-anchor 3,595​	mce-anchor 521.275​