Potential Upside of WKT - Expandable Graphite, page-655

On the contrary.

The price is set in accordance with the BTS agreed upon mechanisms that determine the spot price for each of the fractions. If your well informed, educated and have access to the data room as a potential funder in the running, they will most certainly comprehend the associated complexities.

These will be already agreed upon factors and formally written into the BTS with the price referencing points that both parties are mutually obligated to abide by. Upon the order being put forward the details are then locked in accordingly and voila you have a BOA that has the price set in stone. Pretty simple really.

The price floor is set if you follow the graphite basket prices and are privy to the mechanisms and pricing structure which I am sure their funding parties would have access to via the data room ; )

I am not privy to the mechanisms however I would anticipate / speculate that they may have a minimum downside for a 12 month period and perhaps a percentage of maximum upside to protect both parties to get the show on the road.

With the global supply demand imbalance we are only likely to be seeing prices go UPWARDS, not downwards.

I can understand your concerns if the project was going to take 24-36 months to build and begin production, which WKT will take far less time.

I hope you do at least understand and comprehend that WKT will be producing in less than 12 months.

The funders would clearly know what the basket prices would be if they locked them in today and in 12 months and 24 months with industry forecasts.

The company would also be educating all funding parties on what separates WKT from SYR.

There is no point in pursuing funding parties who wish to remain ignorant and narrow minded now is there. Just means lost opportunities for those potential funders and future embarrassment as word will spread in the graphite and financial industry.

Bean Counters will always be looking for risks to be reduced or mitigated on any project as best as possible and having multiple BOAs, HOAs, MOUs in place in EXCESS of our Self Imposed Start Up adds another set of arrows to the quiver of de-risking the project. To think otherwise leaves one shaking their head.