Ann: Development Progress - Lindi Jumbo Mine, page-1184

RO8 I don’t think you are giving what Wogen does enough credit. They are the middle man so to speak. The do all the leg work. They negotiate the sales, price and volume. They organise delivery, they invoice and receipt payments and they pay Lindi upfront.
As a supplier WKT can solely focus on mining and processing. Also other projects that need exploration and development plans etc.
As a business I make a product and then sell that product. I can sell to shops myself but I would need to sell to 40-60 shops to sell what I make or I can sell to one wholesale company and he sells to all those shops which he already sells other things to. The wholesaler gets a discount of about 12.5% and he makes a mark up of about 25%. We only have 1 customer to deal with and he has about 60 to deal with. Same as Wogen and WKT.
My point is WKT saves a lot of time that can be better used on growing Lindi and WKT by the deal with Wogen. If it is between 15-18% then Wogen is earning that with the work that they need to do. it’s a fair deal