Last night I posted a number of questions so I'll answer them myself on how I interpreted the Ann itself. If anyone wants to they can copy this and send it to JB to confirm or not my interpretation of his answers. The questions are in italic and how I understand the response to be in bold and underline. My reading of the Ann is the Offtakes and finance deals are critical to relisting and ensuring that WFE can match its commitments with suppliers of ore for the feed facility to end customers. This has been the hold up all along.
My personal take is that July appears a best case scenario for relisting as well IMO, and given now Offtake partners and financiers know where WFE is at, I hope for yourselves that WFE does not cut a 'bad deal' with Offtakers and financiers in pursuit of relisting. Suspect though, by taking this long maybe JB is not willing to accept any deal to get relisted is my interpretation as well, which is probably a good thing for SH. All IMO
My questions from last night's posts in italics and how I have interpreted the Anns/tweets in bold
1. Has a Prospectus been lodged with the ASX, and if so when and has the ASX responded to the Prospectus?No, a principles based letter was lodged. If the ASX has responded what additional work is required (no specifications required but a broad narrative) and how long until it is relodged? The need for funding and Offtakes has been the key stumbling block with the ASX.
2. If a Prospectus has not been lodged when does WFE intend to lodge the Prospectus?See above. However, WFE appears confident that it will get the Offtakes and funding arrangements in place to get WFE relisted on the ASX (and attain SH agreement for the deal) in July. Without theseit will be unable to relist.
3. Turning to the JV arrangement, does the Agreement have any sunset clauses that the deal is 'off' if certain matters are not dealt with by a due date? If the answer is yes, how long does WFE have left to get its house in order (months/years)? (For others, this is not market sensitive btw because been in suspension you can't buy or sell the stock regardless of how JB answers this). Would appear too me WFE believes it will get the required Offtakes and funding to allow relisting in July. As a result the issue of sunset clauses becomes not relevant, if their are sunset clauses inthe current timeframe (but remain unanswered if December 2018 - January 2019 comes and goes and funding/Offtakes are yest to be secured etc (given first product would not occur in any event until Dec/Jan - see 11 below).
4. Turning to the 'binding' purchase Agreements with suppliers to its proposed facility, do these have sunset clauses where the seller can walk away from the Agreement at a due date? If the answer is yes, how long does WFE to get its house in order? (For others, this is not market sensitive because been in suspension you can't buy or sell the stock). As per answer to question 3.
5. In regard to 4, has WFE commenced discussions for Offtake Agreements with prospective end customers?YesHas WFE commenced discussions with financiers for the acquisition itself and in particular capital expansions?Yes
6. Noting the current capacity of the plant of 250,000 tpa, and what we understand to be binding agreements for the purchase of over 600,000 tonnes of ore per year, will the Prospectus provide a framework and capital cost structure for the expansion of the plant? Attaining Offtake Agreements are critical to ramp up and funding, and will drive the Prospectus or documents required by the ASX for relisting and SHs to vote on. Infact the strategy of Offtakes and what I am interpreting debt to be as equity for Offtake Agreements ensures that the plant can be scaled up to take the 52,000 tonnes of ore signed with third parties.
7. Turning to the Feb 2019 Ann, where an independent valuer provided an NPV estimate within that Ann, can WFE explain the purpose of that valuation and the assumptions underpinning that valuation given the model inputs were provided by WFE? Did the data provided to the independent valuer by WFE provide a short term outlook using the existing capacity of the plant or did it include the possible expansion scenarios?. Furthermore, what was the length of time of the raw data financial inputs (2 years, 5 years, 15 years) which the Independent Expert used for calculating the NPV? Securing finance and Offtakes will demonstrate the value of the project. What the Feb 2019 Ann can be debated for lifelong here LOL
8. Does WFE intend dual listing, first relisting on the ASX, before moving for a LSE listing?YesOr does WFE intend delisting from the ASX and move straight to the LSE? No, the preference is to list on the ASX and then dual list on the LSE If the latter, what documentation does WFE have to provide and what is the length of time in regard to possible listing on the LSE? Not applicable, unless ASX listing becomes too difficult and therefore need to list on the LSE.
9. What is the timeframe for shareholder approvals underpinning the purchase at 3 at a subsequent shareholder meeting and when will that take place?Hoping for relisting on ASX in July. Presumabaly a SH meeting will also occur as soon as possible.If seeking to delist from the ASX and list on the LSE what shareholder approvals are required and when will that meeting of shareholders be called? WFE's preference is to remain listed on ASX and pursue dual listing on LSE.
10. In terms of the Prospectus, has WFE engaged Independent Experts to provide valuation reports? WFE have consulted lawyers only to date, but I presume intend getting independent valuations at some point. (Note: My own view is I suspect if funding is provided and Offtakes are there then that in itself would provide some aspect of a valuation assessment albeit for a SH meeting I would suspect an independent valuation report to be put to SH to vote for the deal hence my answer here.)
11. Given the length of suspension, and the fact a quarterly has not been lodged, can you confirm that WFE is currently trading as an ongoing concern (meaning it has the cashflow to pay its bills) for the remainder of this year? Yes, provided WFE attain Offtakes and finance for the capital expansions. As part of finance that would ensure WFE has sufficient working capital given first cobalt sales are not foreshadowed until 4 to 6 months after the deal is finalised given capex needs etc.All IMO IMO IMO IMO. As I said, if anyone wants you can send this script to JB LOL for verification or otherwise.
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