I too wish that WAK would grow by funding investment from...

I too wish that WAK would grow by funding investment from profits. CRs usually do more harm for retail shareholders than good.

To a degree WAMCO's right to royalty payments could occasion a conflict of interest. WAMCO can probably keep its share of WAK constant, and even increase it via new shares issued pursuant to CRs that are intended to accelerate sales. WAMCO can do very well, even if WAK does not make a profit. This is what the Prospectus states:

Royalty: WA Kaolin owes to WAMCO a royalty for each quarter in which WA Kaolin either mines and sells kaolin ore ex-works, FCA or FOB or mines and processes kaolin ore to produce a kaolin product which is sold ex-works, FCA or FOB, which must be paid quarterly.

The royalty is the greater of:

1. $1.50 per tonne of dry kaolin ore or product sold in a quarter, provided that if kaolin product has been sold after processing, then tonnage used to calculate the royalty will be twice the actual tonnage of the processed kaolin; or
2. 1.5% of the price received for the sale of kaolin ore or product in a quarter.