Trucking might be a problem, but by using “might”, I signal my perception of unlikelihood.
I am concerned that the speed of recruitment could be a problem, because the closest settled area, the town of Wickepin, only has 300 inhabitants, by Management has not said as much.
The 20kg bagging machine was said would be delivered in June 2022, but it is only now been commissioned. Covid would have had something to do with that delay. If as management has said, there is good demandat a premium price for that packaging, WAK that may occasion a statistically significant fillip in sales in the September quarter.
If WAK is a potential high flier that is worth twice the current SP, and is going to be sufficently cash positive operationally to fund growth from EBITDA, then it would make sense not to pump up the SP to trigger the take up of the 25c options. If the options were exercised, that would generate circa $41 million that WAK may not need. I do not know when management realised it need not invest in complex delamination facilities (slurry pipe line to Wedin, return pipeline, settling ponds, etc) – maybe the changeof thinking happened after the that included the 2-for-1 options attached to the share issue.
Personally, I do not mind if the SP stays low enough for those 25c options to simply expire on 20/11/2023, because I cannot see that the $41m could be usefully employed circa 20/11/2023. WAK can get Plant 2 up at very little CAPEX, and beyond that would serve no purpose until railing product became reality in about 2026. I have heard nothing about the timing since a vague 2025 was mooted by a Government press announcement over a year ago. Seconds ago I Googled the issue and found
https://www.narrogin.wa.gov.au/news...nes-for-road-safety-and-economic-growth/11162.
There is nothing encouraging in that announcement, so my 2026 may be late 2026. The 500,000 tonnes per year tonnes mentioned, reflects what Andrew Sorensen said some weeks ago about the absolure maximum tonnage that road transport could handle. That suggested to me that a third K99 plant would come on stream to push capacity above 0.4mta in anticipation that when 0.5mtpa is reached, rail transport would become available.
