Good Morning Capraise,
WKT's own presentations indicate that the expandable graphite market is around 50-70k tpa, it is expected to grow at 3% until 2025 then grow at 5% from 2025-2035 to reach a total of 120-130k tpa.
It has been discussed many times around here, a few selected HC posters think the market is much larger than the global demand or forecasts
View attachment 1888783You only need to look at the AGM presentation (page 7) to see there is no real market for +34 mesh graphite, the total global demand for +34 and +50 mesh (50% of WKT basket) is only 12% of global graphite demand,
View attachment 1888828Regarding the Options, they Expire on the 31st of December, the last trading day is the 23rd of December,
Its going to be very interesting to see how many options are converted, looking at the chart over the past 12 months, there are a significant number of option holders who have bought between 10-15c (Red and Orange Lines) who will be tossing a coin on if they convert their options, we also have another group who purchased options above 15c to high 20's (Pink Box) who IMO are very unlikely to convert their options, as their total cost would be around 30 - 40c per share once the options are converted.
I can certainly see why WKT management is now in discussions with the Lenders (T40 Shareholders). There have been around 7 mil 15c options converted since the September QTR ($1 mil)
WKT QTR report expected a 300k shortfall for December QTR = $700k cash,
Less the interest payable to the Lenders ($90k to the T40 % $23k to Mike) Total $113k
= $570k Cash in Bank.
WKT QTR Cashflow report forecast
https://hotcopper.com.au/posts/41146675/singleIf WKT sees a poor conversion of the remaining WKTOA's WKT could be looking at a CR early in the year.
View attachment 1888843
(20min delay)