Ann: Quarterly Activities Report, page-93

First 93 Last

Share
Profile

Follow
sirrobbo

4,072 Posts.

1377

01/08/24

15:45

Post #: 75029667
Share

Originally posted by GGtrader ↑

Thank you for sharing that information sirrobbo ,I particularly appreciated the section focusing on Lindi Jumbo:

Impacts for Lindi Jumbo As a substantial coarse flake miner with a ratio of 26:74, it benefits from both the reduced supply of coarse flake by-product of others to sell all its coarse flake production but also at higher prices as there is less supply available. Also, with less producers producing fines there is less competition to sell its 10,400t of its by-product fines.

Paradoxically, the shut in of other mines may increase the demand for Lindi Jumbo coarse product beyond its planned production of 29,600tpa. By producing high value product from a high-grade mine at a lower scale, the fixed costs of the Lindi Jumbo mine are relatively small. The additional 10ktpa production capacity can be made available for no further capex & would result in a 25% reduction in the fixed cost proportion per tonne of production.

Therefore, Lindi Jumbo may benefit from the current circumstances in 3 ways:
1. A higher price for coarse material as less competing supply is available
2. An increased demand for its coarse flake as existing supplies become less available allowing it to use its excess capacity
3. A lower cost of production as its fixed costs are spread over a greater volume of production.

The only disadvantage is that the realised price for fines would likely be slightly less but this is only a slight change to 12% of its revenue.
This will likely result in a higher margin over greater production delivering not only higher revenue & profits but also greater profitability per tonne.

Expand

Great post GGtrader

Yes even though some numbskulls try and compare WKT to SYR, the decrease in prices for the fines will have zero impact on WKT's revenues as they were only going to stockpile the fines anyway. That's how good the Lindi resource is.

Lindi's plant is optimised for large, Jumbo and Super Jumbo flake.

Most people understand this but there a few that are here daily that will never make the connection it seems.

WKT Price at posting: 10.5¢ Sentiment: Buy Disclosure: Held
15 Upvote

2 Great analysis

Reply

Top Stories

Tonight's US CPI data could set the tone for November. What are markets expecting?

IMA

Issues emerging as Australian companies tackle critical minerals challenge

OCT

Octava Minerals joins the antimony train with high-grades on the radar at Yallagong, WA

ARB

Court process clears way for ARB to buy up 4 Wheel Parts business in the US

ARV

Smallcap Artemis Res' jumps 23% on six digit gold grade rockchip find at Titan

There are more pages in this discussion • 36 more messages in this thread...

First 93 Last

Add WKT (ASX) to my watchlist

(20min delay)
Last 9.8¢		Change -0.002(2.00%)		Mkt cap ! $65.78M

Open	High	Low	Value	Volume
10.0¢	10.0¢	9.8¢	$7.077K	72.21K

Buyers (Bids)

No.	Vol.	Price($)
1	28040	9.8¢

Sellers (Offers)

Price($)	Vol.	No.
10.5¢	78310	1

View Market Depth

No.	Vol.	Price($)
1	28040	0.098
2	366905	0.097
3	73820	0.096
4	142895	0.095
1	100000	0.094

Price($)	Vol.	No.
0.105	78310	1
0.110	1331213	8
0.115	353198	6
0.120	477177	4
0.125	219579	4

Last trade - 15.51pm 10/10/2024 (20 minute delay)

WKT (ASX) Chart

Ann: Quarterly Activities Report, page-93

Tonight's US CPI data could set the tone for November. What are markets expecting?

Issues emerging as Australian companies tackle critical minerals challenge

Octava Minerals joins the antimony train with high-grades on the radar at Yallagong, WA

Court process clears way for ARB to buy up 4 Wheel Parts business in the US

Smallcap Artemis Res' jumps 23% on six digit gold grade rockchip find at Titan

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Quarterly Activities Report, page-93

Top Stories

Tonight's US CPI data could set the tone for November. What are markets expecting?

Issues emerging as Australian companies tackle critical minerals challenge

Octava Minerals joins the antimony train with high-grades on the radar at Yallagong, WA

Court process clears way for ARB to buy up 4 Wheel Parts business in the US

Smallcap Artemis Res' jumps 23% on six digit gold grade rockchip find at Titan

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News