No, you're getting confused about a now-moderated discussion of...

No, you're getting confused about a now-moderated discussion of hypotheticals over on the KRR dumpster fire where some guy asked if KRR could buy WAK's dirt for use in HPA precursor manufacture (long story short: yes, but it would be buying Al2O3 on par at $1600/t and selling precursor in the HPA processors for ~$2500/t).

I've seen the discussions on these threads, but haven't made any comments.

So I guess here goes.

WAK is pulling a typical private equity flip. Vendors have spent $42M on this project, and loaned WAK $20M. The IPO basically just repays the loans into the shell, the vendors and lenders get to walk away from this smelling of roses, keep some equity, get a fantastic re-buy in later from the performance shares to cover themselves against missing out in case it actually goes somewhere.

meanwhile, the IPO participants get to wear the risk, have a shell capitalised at $58M with plans to chuck out cash flow, and have been sold pork pies about dividend security from NPAT or whatever, in a slick sales pitch aimed at the SMSF market (the oldies love this stuff, they lap up long term franked divvies).

But its very risky business and I'm astonished at the idea that suddenly a ubiquitous thing like white weathered granite in the wheatbelt, and indusrial minerals is this hot new speculative boom. Don't even get me started on the halloysite nanotechnology nonsense.

So, with the above unfounded grouchy opinions, I took a pass on the WAK IPO and I'm sticking to my knitting getting modded because the KRR fan club hates outside expertise.