Great news for Walkabout Resources as they have secured a debt...

Great news for Walkabout Resources as they have secured a debt facility of up to US$25 million with Gemcorp to complete the construction of the Lindi Jumbo Graphite Mine in Tanzania. This is a significant boost for the company and ensures that the project is funded into production. The loan terms are pretty solid too, which is impressive considering the current instability in the financial sector globally. This loan facility is a good sign that the company is on track with its plans to develop the high-grade Lindi Jumbo Graphite Project and is attracting support from notable investors like Gemcorp.

Even more exciting is that Walkabout Resources is in the box seat for producing graphite, particularly given the increase in the graphite basket price. The average basket price in the DFS is $1,515/t for the life of mine (24 years), and Macquarie Capital has just put out its forward price estimates. The Linda Jumbo basket prices could be $1,441/t and $1,630/t in 2024 and 2025, respectively.

Furthermore, Walkabout Resources' prudent leverage will increase future earnings per share for shareholders, which is excellent news. Benchmarking against similar companies, which aren't as progressed as Walkabout Resources, shows that the share price should be heading north to a dollar as the mine is completed based on EPS. With Walkabout Resources in the box seat for producing graphite and the increase in the graphite basket price, the future looks bright for the company. I wouldn’t be surprised if we started to see the SP start heading north of a dollar within the next 12-month period.

Sweat.

DYOR GLTH