Ann: Expiry of BMCG funding facility, page-118

Hi Sparecash,

I agree, that announcements are always worded in the best interest of both parties, WKT is not going to advise, BMCG pulled out from providing the US$9.3mil in backup funding.

Now let's work out how much spare capacity WKT has under Gemcorps Trench 1 funding. US$20mil

WKT December QTR cashflow report



As you can see Unused financing facilities available at the Quarter end is $26mil AUD
We now know that BMCG US$9.3 Mil is no longer available, this drops the WKT undrawn amount down to $12mil.
Once you take out the $7.65mil from the Additional Gemcorp US$5mil unsecured loan facility WKT only has $4.35mil available as of the 31st of December from Trench 1

Previous QTR costs, Which could continue to apply to WKT during the current QTR.

We have finance costs associated with the loans which were running at $1m per QTR,
Corporate costs of $700k per QTR

Directors fees/staff costs at $150k per QTR
Loan interest is capitalising at ~$400k per month (~$800k so far this QTR)

Based on only these costs, WKT could have as little as $3mil left available in Trench One, without any additional costs of the construction of the mine. costs associated with hiring third-party lab and accommodation, and we don't know if the backup generators WKT has shipped to Tanzania is COD (Approximately cost $1.5mil AUD)

As I keep on saying, I cannot see why WKT would agree to terminate the BMCG facility as others have claimed as the remaining cash under Trench 1 is almost exhausted and we don't know if there are any additional conditions associated with WKT drawing down on Gemcorps second Trench (unsecured loan) which may provide $7.65mil.

As you know, WKT is still yet to complete the plant, they have advised they have now hired additional staff to start training and we know the issues with shipping in and out of Tanzania, the period for testing of commercial samples, the additional 5 months to get the plant up to the DFS recoveries. WKT is on the cusp of having costs of around US$4.2mil ($6.43mil) per QTR once they commence operations with very little graphite sales expected during this period and the first loan repayment is due at the end of September. WKT will need to find another $3.7mil.

I am sure you can calculate with all of these costs, that WKT is not going to take long to completely exhaust the funds from Trench 1 and 2.
BMCG's $ 14 million certainly would have provided WKT shareholders with a nice buffer to protect it from any unplanned interruptions and another heavily discounted capital raising. if only this was available.

Anyway, that is my assessment of WKT's situation, I would say I am looking forward to seeing your commentary, but you did mislead investors the other day by suggesting WKT still has $30 mil available under these loans You were only out by around $18mil.