Nothing like pointing out the dire graphtie market and the failure of all of these graphite mines.
I just porve how little attention you should be paying to Bench Markets Intelligence forecast revenues.
Northern graphite - Who they thought would be the most profitable graphite mine in the world is not profitable and has a MC of US$15mil. How is this possible with BMI rating this compnay the highest margin project globablly?
Molo Graphite mine - Was the forecast to be the third most viable and it is yet to make a profit. Syrah was forecast to make a US$500 US free cash margin and they are still selling graphite for less than their production costs.
Then we have Lindi who was forecast to be the second most viable product, After 6 months of commissioning they are yet to be handed over the project. the company has stated they expect the particle size to grow into the future. the output from the mine was below 30%. The high grade graphite which was claimed to be 19.02% was only 13-14%. oh and more importantly, all those jumbos that were meant to be produced (easily liberated) are few.
I don't believe any of these other graphite companies have a credit card loans to repay in a graphite market which is still over supplied.
@Sunrock is still lost as to why the SP isn't higher, I don't think he has completed any detail research in any other stock. that is the issue of reading HC and the marketing tweets from a director who isn't independent with his ~5% shareholding in WKT.
BTW, we all know how important the jumbos are to WKT viability
The DFS forecast that just the Jumbos and Super Jumbos would bring in revenues of US$1000 per toone.
due to the dire market conditions, this has been reduced down to US$600, which is forecast to still generate 60% 0f forecast revneues for the mine, We haven't seen one WKT shareholder advise if the mine will be profitable if they are unable to produce 49% of its forecast output of this flake size.
Anyway, WKT has updated the market with its likely OPEX of US$1.4-1.5 mil per month, confirmed the company has required to drawdown on Gemcorps US$5mil back up facility, also confirmed WKT will need to inject another US$2mil into the project and those sales @SpareCash7 said was covering all of WKT's costs are either yet to leave Tanzania or will be on a ship for approximately 30-40 days before it arrives in Europe for testing.
Anyway, I am sure @Sunrock is starting to understand why investors don't want to buy WKT and why investors are getting nervious. When you see BMI's rating of the highest margin graphite project is now only US$15mil and the mine is in care and maintenance, The thrid graphite mine isn't providing any update on sales and SYR is still selling graphite for less than its production costs due to graphite being over supplied, you might understand the high risks associated with investing in WKT who are yet to prove they can even get their mine upto its nameplate recovery or produce those jumbos in the volumes they require to make the plant viable.
WKT Price at posting:
11.3¢ Sentiment: None Disclosure: Not Held
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