Ann: Quarterly Appendix 5B Cash Flow Report, page-18

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spid81

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29/04/24

11:03

Post #: 73554805
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Originally posted by spid81: ↑

Hi R08

If you take away the optional US$5mil from Gemcorp, you could consider WKT is already in default of that requirement, US$20mil requires US$4.2mil - $6.2mil AUD, yet WKT only has $4.2mil AUD as of the end of March. Then you also have the capitialised interest of $467k for April.

WKT needs US$4mil in funding from the Tanzania banks or a CR to top up the company's funds. although there is no CAPEX blowout, the interest charges on the Gemcorp loan is quickly eating up WKT limited funds.

Anyway, I find it interesting that the pump crew and the ASX announcement neglect to mention the Gemcrop loan facility conditions of having 2 QTR of cash at all times to meet the loan repayments.

@Gammat - Yes it would pay if you read the announcements. It would save you from giving false and misleading information to HC readers.

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Hi @SpareCash7
Can you please explain why you think WKT is not in default of Gemcorp's loan conditions,

As it clearly states, WKT is required to maintain a debt service reserve for two current quarter's debt payments at all times.
WKT has detailed it has fully drawn down on the US$20mil, if you divide this by 29 months (which is the time remaining on the loan) and then times it by 6, WKT needs to have US$4.2mil in cash - $6.42mil AUD, yet the cash WKT has in the accounts at the end of March is only $4.1mil.

It would be helpful for you to explain HC readers why you think there is no breach of the agreement, or if there is a breach of the agreement, do you think the back up funding is now in doubt until WKT satisfies the requirement?

WKT Price at posting: 11.0¢ Sentiment: None Disclosure: Not Held
3 Upvote

0 Great analysis

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