64c IIR Report - Quality Data, page-48

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rolly777

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20/04/19

11:17

Post #: 38215705
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Originally posted by Names little ↑

And it's good to see a realistic appraisal in the Patersons note of the situation in regards to how "bankable" those Off takes are

"

Offtake agreements are positive, but funding strategy still uncertain. While they are positive, the offtake agreements recently announced are not robust enough to support traditional debt financiers’ conditions in our view. As a result, it is not clear what shape the Lindi Project funding will take and this has an overall impact on the underlying valuation of WKT shares. In November 2018, WKT indicated that the partial stage debt funding previously granted by the Lindi Project funding partners, CNBM General Machinery Co Ltd included “security terms that make it onerous and unattractive”, and it would therefore not be pursuing this avenue for funding. This then leaves an alternative funding strategy that could include additional equity raising, quasi-debt (eg hybrids, convertible notes), and/or interest at the project equity level."

https://www.wkt.com.au/wp-content/uploads/2019/04/20190416_WKT_Hold-Patersons-note.pdf

No wonder the market took notice, so refreshing to see a clear, concise appraisal of the reality of the situation.

Sometimes it's difficult for the Positive holders to accept market realities, so hopefully a few on here appreciate the clear and precise note, but as always of course one does not need to agree with it, but it's certainly food for thought.

Would have been nice if they provided more details on why the last lot of financing fell over, what exactly were those "security terms that make it onerous and unattractive".

All in my very humble opinion as always.

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Oz has already ripped this report from CH to pieces, it has no credibility.Its a pity you do not put up the independent report that prices WKT at 64 cents. It is a comprehensive report and the one you Quote is mostly a cut and paste from a previous report that was also influanced by a company that makes money by holding the shareprice low. Your intentions are questionable.
WKT Price at posting: 27.5¢ Sentiment: Buy Disclosure: Held
14 Upvote

0 Great analysis

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