Hi HongKongPhooeyWhy do you think a CR isn't coming, Did you run...

Hi HongKongPhooey

Why do you think a CR isn't coming, Did you run the numbers or read the past announcements?

I will break it down for you.



As you know, WKT drew down US$2mil from Gemcorp's US$5mil backup facility in the last week of June.



The QTR cashflow report shows this was $3.007mil, If you read item 8.4 this shows the remaining cash that was available to WKT, which is only 376k AUD.
Did WKT have significant costs to cover in the last week of June to blow $2.6mil out of the $3mil AUD they borrowed from Gemcorp?


The QTR report failed to advise if the first shipment of graphite concentrate has departed from Dar Es Salaam, which is concerning when the transit time to Europe is 30-40 days, then you need to add in any customs delays and "confirmation periods of between two weeks and one month after receipt"

If my assessment is correct, WKT will unlikely have any commercial sales during the September QTR.

This brings us to covering the OPEX, WKT's 7th of July announcement stated "When running at nameplate capacity, monthly costs of the mine are expected to be approximately US$1.4-1.5m" US$1.4 to 1.5 mil = $2.14-2.29 AUD per month,

When you consider WKT only has $4.874mil AUD available and the y need to cover the OPEX, bank interest, and corporate and directors fees, I cannot see how WKT can survive without tapping shareholders for funds as the monthly operating costs alone will eat up all the available funds within ~2 months.

Anyway, its going to be interesting to see if these initial samples meet their customer's specifications, when WKT was expected to produce grades of 97% TGC, yet they have only achieved 90-95%,

Good Lucky HongKongPhooey, you are going to need it.