Ann: Second Binding Offtake Term Sheet, page-23

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09/04/19

09:35

Post #: 38054392
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Originally posted by oznt ↑

Another Great Announcement.

Check out the wording and this is where everyone needs to understand the flake size distribution carefully.

View attachment 1505524

Todays announcement states the 30,000 Tonnes is for Large Flake and Jumbo Flake.

According to our DFS we can only supply 10,500 Tonnes of Large Flake and 13,000 Tonnes of Jumbo.

That's 23,500 Tonnes of our product yet we have sold 30,000 Tonnes -- OOPS lol.

View attachment 1505557
WKT will need to expand the plant in order to supply the remaining 6,500 Tonnes and that without any other MOUs and HOAs being converted into Binding Term Sheets : ))

We don't need BOA for the Battery grade (26% of our Flake size distribution) as this will be easily sold on market at spot prices as the EV sector is in the process of taking off. (took 5 years to sell 1M EV cars - it just recently took 6 months to sell 1M EV Cars and speeding up)

The 6K TPA Super Jumbo Flake (most likely the Germans IMO) which we may not see until 6 months out from production will only increase in price even further as per pricing forecasts. Even if the forecasts are half right half wrong it will still be worth $15M - $30M over and above DFS pricing.

Any further BOAs now and WKT will have no choice to be expanding the plant so I fully expect that we will be effectively increasing the plant by 50% to 100% before we get started.

Its simple maths from here on in.

The upside potential is what ever you thought the company was worth at 40K TPA is now seriously looking at 60K-80K TPA.

Lets see the MOU and HOA now contemplate signing favourable BOAs or risk missing out : )))))))))

Expand

The wording is showing a multi bagger from here, they don’t want certain capacity to be binding offtake to take advantage of the hot market, they don’t want BOA!!! That’s super bullish

WKT Price at posting: 18.0¢ Sentiment: Buy Disclosure: Held
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