Hi Croc, Fantastic ramping, Any credit WKT may receive for the...

Hi Croc,

Fantastic ramping,

Any credit WKT may receive for the 2019 early start works, will only reduce the amount WKT needs to spend before the US$20mil loan is available, It doesn't not change the CAPEX of US$32mil.


WKT has updated shareholders the EPC contract, Power and the Camp are all awaiting final contracts, until these contracts have been secured, you cannot assume the WKT has raised enough funds or if the plant will be completed in the 9-12 months.

Mercury Rising was honest enough to advise the shipping costs alone have increased by upto US$500-800k which is a significant dent into the contingency (US$2.2mil - US$500k = $1.7m) This only allows for a 10% increase to the CAPEX of the production facilities.

As I said before, With the significant increase to the price of steel, I will be amazed if Jinpeng can build the 840tpd production facility for the 2019 price.

I call BS with the excuse of shipping dates, Shipping is out of Jinpengs control. Going by WKT's own presentation slides, the production facilities could have been built within the past 4 months and be organised to be shipped over the next few months.

Here is a calculation for you Croc,

You have claimed WKT will be earning a profit of US$1200 per tonne.
Lindi's forecast production is 40ktpa / 12 month = 3,333 tonnes per month
3333 tonnes x US$1200 profit = US$4mil per month of profit

Does it make any financial sense to you that WKT is looking at cutting costs of shipping, retendering the accommodation and power to save a few dollars when the delay of construction is costing them US$4mil per month in lost profit?

Going by WKT own time line from the June 2021 WKT is already 2-4 months behind their own schedule.