Ann: Scotland Exploration Update, page-71

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MrGraphite2

6,299 Posts.

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23/10/21

14:14

Post #: 57019559
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Originally posted by 96Blitz: ↑

Hi Lorenzo

Just so the WKT bulls don't mislead you.

Lindi Jumbo's project Back of the Envelope Valuation:

Post-tax Project NPV (10): US$197m

USD: AUD exchange rate: 1.36

WKT Project Ownership (excluding 16% FCI): 95%

Enterprise Value: $255m ($197m * 1.36 * 95%)

Add Cash on Hand: $16m ($5.7m 30/06/21 + $7.6m equity stage 2 + $2.3m equity stage 3)

Equity Value: $271m ($255m + $16m)

If Lindi Jumbo achieves its DFS figures as your have quoted above.

and Generates the $271mil that you have quoted,

Lindi Jumbo would then declare a dividend.

Where WKT would recieve of 79%, the Government of Tanzania 16% and the local shareholders 5%

Out of WKT's $214mil they need to their corporate costs ect.

$214mil / 425mil shares (without Trench 3 shares issue or the additional funds the USA investor may invest) = 50c per share = 1.25 x current SP.

What we know is the graphite price is significantly lower than the DFS figures,

and we don't know if WKT can achieve the recovery of Large Flake from the Fresh Mineralisation, there has been no bulk testing.

It is IMO unlike WKT selective mining will work as intended when they are trying to selectively mine the same host mineralisation, you only need to look at the drill results, there is significant variation of the TGC

Plenty of risk for a ~100% gain, I can certainly understand why some investors have held back significant investment in the project. @96Blitz - How did you go with asking your friend?

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Hi Blitz,

Love the fancy numbers and expectations. If, only the world is as perfect as the tip of the pen.

That floor price of 12c is a concern. I am praying and with all my fingers and toes crossed that it won't come close??

Buyers Beware of the rampers. NLN. DYOR.

WKT Price at posting: 19.5¢ Sentiment: Sell Disclosure: Not Held
3 Upvote

0 Great analysis

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Ann: Scotland Exploration Update, page-71

Power gets set for 1000-metre maiden drilling program in Brazil

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

US election outcomes: Key economic and market takeaways

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Ann: Scotland Exploration Update, page-71

Top Stories

Power gets set for 1000-metre maiden drilling program in Brazil

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

US election outcomes: Key economic and market takeaways

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Quit before you're fired: Russia bans uranium exports to USA, duplicating extant US ban

Featured News

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