@reiners You made the mistake of engaging stupidity. The margins...

@reiners

You made the mistake of engaging stupidity.

The margins for both companies are clearly stated in their most recent investor presentations.

WKT (DFS)
Basket Price: $1515 per/t
cost per tonne: $347 per/t
margin: $1,168 per/t


GPX (Pre-fes)
Basket Price: $1,777 per/t
cost per tonne: $500 per/t
margin: $1,277 per/t

WKT spruiks grade as king because that's the strength of their project, but if you have been to China, Europe, USA and spoken to suppliers, you know expansion rates are what drive pricing with grade secondary.

This insight of better expansion ratios is what Phil first discovered, it's why Castlelake shadowed Phil (to confirm said prices) on some of his China trips and it's why they backed the GPX project over others.

My first boss at Morgan Stanley once told me, you bank dollars not GP% - in this case WKT have the better sales margin (77%) but GPX (71%) bank more dollars and if you run a business, it's dollars in the bank, not GP% that pays the bills and more importantly for Castlelake - the dividends.

Ignore all their bullshit about taking over the company etc. Castlelake represents pension/retirement funds and needs to provide a stream of constant returns in what is a global low-yield environment.

Why did Castlelake choose Graphex, simple, our project will generate the most cash, thus dividends, thus yield.

Every Company chooses it's marketing angles based on its strengths, WKT has grade thus they bash that angle constantly. But all GPX holders need to know is that we generate the most cash and have the greatest potential for SP appreciation.

You don't have to argue with them, you just have to look at the investor presentations of both companies and ask a simple question, do you like more cash or less cash - everything after that is bullshit.