Ann: Development Progress - Lindi Jumbo Mine, page-5259

Good Morning Albite,

There is no potential upside to processing the low-grade stockpile. Although there won't be significant mining costs, WKT will still need to pay the cost of moving the material to the ROM pad. The biggest cost blowout will be when WKT starts processing the low-grade stockpile.

WKT has reported that low-grade stockpile is meant to have an average grade of 6% (2019 DFS - The low-grade material with a grade of around 6% TGC)

If WKT processes this mineralisation in the tiny plant they have purchased the annual production of graphite concentrate will be 15.5ktpa @ 85% recovery (under 50% of the planned production output) based on the IIR reports opex, it was expected to cost US$420 per tonne to process at an average rate of 40ktpa. ($16.8mil annual cost) the OPEX based on 15.5ktpa output by processing the 6% TGC low grade stockpile, the OPEX would be closer to US$1000 per tonne for a product.

The mine would be lucky to generate any free cash margins.

You guys do fall for the marketing spin WKT puts out, you really should be running the numbers to work out the project wasn't viable based on a lower grade TGC and needs to maintain all of its flake size (which WKT has already confirmed isn't happening) to achieve the higher prices to generate free cash flow.