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Potential Upside of WKT - Expandable Graphite, page-1438

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Croc-file

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20/07/19

22:43

Post #: 39616297
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Originally posted by oznt ↑

WKT teething problems will not be as extreme as others as WKT has superior grades and superior flake size distribution that will insulate her well enough, so will not be felt anywhere near as others operating today.

What gives WKT an edge over most Graphite Companies is her very HIGH Grades and Flake Size Distribution etc.

17.9% TGC for the Life Of Mine over 24 years in the 1st Pit Shell.

WKT has much greater Flake Size Distribution that is the envy of most Graphite Companies with exceptional high percentage suitable for the Expandable Market (74%) and only (26%) suitable for the Battery Market.

I certainly would not be investing in any Graphite Companies too weighted towards the Battery Grade Market as SYR is currently demonstrating they are not profitable and they are burning cash.

The beauty of WKT, she has much greater wriggle room with price impact with her head grades and profitability due to the excellent Flake Size Distribution. More importantly, WKT's cut off grades are what other Graphite Companies are happy to be mining.

WKT can withstand some very poor recovery rates and purity levels etc, especially during the commissioning stages that will in turn allow WKT to be making profits from the get go. Highly unlikely WKT will be burning cash.

WKT will also be targeting the grades higher than 17.9% over the first few years ; )

SYR flooding the market with their Battery Grade Graphite Material will not affect WKT as WKT primarily in the Expandable Market. While they demonstrate Battery Grade Market is a cash burner it will put other Graphite Companies on hold, potentially for 2-3 years unless they also go the BAM path.

The 10K TPA of Battery Grade Material WKT will produce will cover approx. 33% of our Opex (going off SYR current pricing). Battery Market not our primary market.

10,000 T x $457 Sale Price = approx. $4.6M (battery grade revenue)

40,000 T x $347 OPEX = approx. $13.9M (opex costs)

So I take great comfort in such that the remaining 30K TPA is very profitable and to cover the remaining OPEX we would have to sell it for approx. $310 per T to cover the OPEX.

Simply wont happen with our Premium Expandable Graphite : ))

($13.9M - $4.6M = $9.3M divide by 30,000 T = $310 / T to cover OPEX.)

WKT wont be immune to teething problems however she is very well insulated from any price shock impacts than most.

The CSA Global article is a great article I also came across a couple of years ago and was instrumental in my Graphite Journey in understanding Graphite and Graphite Deposits and more importantly to provide myself with the knowledge to stay away from other Graphite Companies.

The last Section - CONCLUSION, wraps it up perfectly considering it was written 4 years ago.

View attachment 1655497

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Hi oznt as previously commented plant name plate rated at 40,000 TPA @ 15% TGC
wriggle room that you have mentioned includes upside in plant at no extra cost...

Mine modeling now 17.9% TGC over life of mine from 230,000 TPA gives us a free carry redundancy of 70,000 TPA thru put @ 17.9% TGC

300,000 TPA x 17.9% TGC feed grade =53,700 less recovery rate @ 95% =51,000 TPA

Grade is King in Flotation technology...But lets not over look the inverse relationship of distribution. Up to 74 % in this premium value category...

It's quite impressive the advantage we have over peers....lowest capital intensity per ton mined...Reserve stock pile can feed plant for up to 4 years...free dig

Croc

WKT Price at posting: 34.0¢ Sentiment: Buy Disclosure: Held
8 Upvote

2 Great analysis

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Potential Upside of WKT - Expandable Graphite, page-1438

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Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

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Potential Upside of WKT - Expandable Graphite, page-1438

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Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

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Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

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Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Utah authorities sign off on Anson's lithium extraction plans at Green River

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