Finally, you are starting to work it out, a company that has 4000 microns contained graphite cannot produce 500 microns of graphite (32+ mesh), yet you think WKT with up to 1000 microns of in-situ graphite will be able to achieve 500 microns. It doesn't sound likely, does it?
Thank you for highlighting Molo and SYR have a diversified market to take advantage of the expected boom in battery-grade graphite, the market for WKT's target market (Non-Anode) is only expected to grow by 40kt over a five-year period. considering all of these other graphite companies can produce +50 mesh (300-micron graphite) and WKT has clearly stated there is little to no demand for +32 mesh, one has to wonder how WKT will be viable.
Anyway, as
@dan_stewart83 said, investors are waiting to see if WKT can resolve their issues on-site. suppose WKT fails to maintain the DFS flake size, purity and annual production rate. In that case, the company is most likely headed for a lower SP. By some miracle WKT can achieve its lab-scale results and maintain the 300+micron insitu flakes, there may be some price appreciation. However, with the credit card loans and Gemcorp's 30% share of any profitability, you might need to wait 2 years to see any SP price gains.
Anyway, the pumpers claimed WKT would be "flushed with cash" by now, yet the company still hasn't announced it has successfully made first production, having credit card loans will start to bite on the very limited funds WKT had in its accounts, Would WKT borrow from one credit card to pay the repayments from the other? Maybe
@SpareCash7 can go through the 250 page loan document and see if this is possible.
I am sure you are all thinking, with WKT's target market only expecting to grow by 40ktpa over a 5 years period, what will happen when 20-40tpa of additional graphite is fed into this small market? Will prices be maintained or will prices for these flake sizes significantly drop?
You only need to look at the battery graphite market to see what happens to the price of graphite when it is oversupplied, WKT forecasts 25% of its basket would achieve a price of US$890 per tonne, yet the current price for this type of graphite is only US$490.
It would be nice to hear from Mike what is WKT's current purity and flake size that is being achieved, I would love to know how close we are to SYR's, or if we have to wait to see the results from the fresh mineralisation in ~20 days time.
(20min delay)