Hi Sparecash, Thank you for highlighting WKT has undrawn funds...

Hi Sparecash,

Thank you for highlighting WKT has undrawn funds with the Gemcorp facility, As you would realise the plant is still under construction and WKT is yet to fully commission the graphite mine, WKT will need to draw down more funds from that facility and may also require the back up US$5mil.

You would also know Mike has confirmed they expect the mine to take around 4 months to hit the plant's capacity of ~300ktpa and expect an additional 5 months until the company can achieve the 40k tpa output of graphite output. I highlighted before the OPEX for 3 months production is likely to be around US$4.2mil based on the IIR report that WKT commissioned.

You might start understanding the risks of WKT running out of funds that were highlighted below




At the time WKT thought they would be in production during the 4th QTR of 2023 and they also had US$9.3mil available with BMCG facility, (which no longer exists)

The cancellation of this facility makes no sense until the company can produce positive cash flow, we still have unknown risks due to the delays of construction, increased interest charges, shipping issues, the company requirement to have 2 QTR of loan repayments held, the time for its offtake partners to validate the commercial production.

This is why I don't believe the WKT pump crews claim that WKT agreed to cancel the US$9.3mil BMCG funding as it had already highlighted it as a risk and announced this to the market.

It would be a completely different situation if WKT had the plant completed and had proven their mine was performing as expected, you could then understand why WKT would agree to terminate this backup facility, yet we have all of these unknows associated with the project, its customers and if it can produce a positive cashflow.