Ann: WAK - June 2022 Quarterly Activities Report and Appendix 5B, page-25

It would be nice to hear an update on the testing and progress of the new plant equipment. Here is a suggestion after a glass or three of pre-dinner drinks.

From the numbers I've seen WAK should be turning quite a nice profit from operations quickly. At 200,000 tonnes a year and a projected $130 profit per tonne that'll give us around $26m. Sure there are a lot of other costs to come out of that including loans to directors.

However, think of this scenario...

A previous post mentioned having to consider another capital raising to fund the balance of stage 2. However, with many of us sitting on 25c options that expire in Nov 23, if WAK declared a 1c dividend - which would cost about $2.8m (282m shares outstanding x 1c) - I would venture a guess that our share price would exceed 25c quite easily - and remain there. A 1c div and a 4% yield gives us a 25c share price. For a growth company we could look at a 3.5% yield giving us a share price of 28.5c. This seems like the best use of $2.8m in my books.

The exercise of those Nov 23 options would give us $32m in the bank. We could easily fund stage two and progress towards 3 and 4. Why go through the expense of another capital raising? The brokers want 10% plus and that winds up costing us more and we'd get less.

Am I off the wall here? Does this not make sense or is this the Pinot Grigio talking?