Stirer I don't believe there will be any free cash margins for Gemcorp or Shareholders.
I did incorrectly quote the December 2023 IRR report I overstated the free cash flow (sweeps) at US$20mil it was forecast to be US$6-8mil
Instead of being granted options and shares to benefit in the upside (and hence shareholders will not be diluted), Gemcorp shall be entitled to ~30% of free cash flow (after debt servicing) during the term of the loan - our modelling indicates that this will be in the order of US$6 million to US$8 million (with the term including FY24, which is largely construction and commissioning).
@Farmdownsouth "Perhaps Gemcorp lacks confidence that there will be any free cash to swoop"That is what I was thinking,
As you would know WKT expected the plant to be up and running in January, The mine is still undergoing improvements and the EPC contractors haven't achieved the 48 hours of continuous production. Plus we now know WKT has needed to draw down on the US$5mil back up funding. All of these will have a impact on the free cash margins over the term of the agreement.
I am still amazed that these guys think the Jumbo graphite flakes are going to magically appear. If WKT is already achieving 87% recovery of the contained graphite and the finished TGC grade of the concentrate is only 92% (with some runs achieving 95%), achieving a higher TGC grade of the graphite concentrate requires additional grinding/polishing, which will further reduce the flake size. (SYR is a perfect example)
@sirrobbo added a Tweet yesterday which shows what I can only assume is 2 bags of Jumbo Graphite, If WKT has already achieved the DFS recovery of the contained graphite, but the purity and flake size is already below the DFS forecast levels, I cannot see WKT achieving their 49% of Jumbos when they require additional processing,@Croc-file mentioned SYR needed numerous stages of additional processing to achieve the 94-95% TGC purity, which resulted in the company producing predominantly Fines (low-value graphite).
- Forums
- ASX - By Stock
- Ann: Lindi Jumbo gears up for first graphite concentrate export
Stirer I don't believe there will be any free cash margins for...
-
- There are more pages in this discussion • 692 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add WKT (ASX) to my watchlist
(20min delay)
|
|||||
Last
10.5¢ |
Change
0.005(5.00%) |
Mkt cap ! $70.48M |
Open | High | Low | Value | Volume |
11.0¢ | 11.0¢ | 10.0¢ | $65.81K | 626.8K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
7 | 306015 | 10.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
10.5¢ | 125500 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
7 | 306015 | 0.100 |
1 | 50000 | 0.099 |
2 | 140330 | 0.096 |
4 | 115270 | 0.095 |
2 | 150000 | 0.094 |
Price($) | Vol. | No. |
---|---|---|
0.105 | 125500 | 2 |
0.110 | 130000 | 2 |
0.115 | 361980 | 7 |
0.120 | 477177 | 4 |
0.125 | 249179 | 4 |
Last trade - 16.10pm 01/10/2024 (20 minute delay) ? |
Featured News
WKT (ASX) Chart |
The Watchlist
BM8
BATTERY AGE MINERALS LTD
Nigel Broomham, CEO
Nigel Broomham
CEO
Previous Video
Next Video
SPONSORED BY The Market Online