Hi Semi
What Walkabout Resource need is a good quality broker that backs us.Talks to our people and demonstrates a level of consistency. Currently we do not have this IMO.
So far the first report missed the silk road funding while this latest report has developed a polar difference towards in county risk.
Where is the consistency?
Report 1 from November
Valuation: We have valued the Lindi project at $85 m under conservative assumptions, we included 50% of our Lindi's project valuation,
12% rate to account for country risk and uncertainties and 50/50 dept to equity.
Further upside remains if project equity reaches 100% ($ 0.37/sh) and 70/30 dept to equity would increase the valuation to $0.54/sh We also have included the potential 16% free carried by the Tanzanian
Report 2 from 8th June
Valuation: $0.22 Cents/share. Our WKT valuation is based on discounted cashflow analysis of the Lindi Project proven and probable reserves,risk weighted at 50% to reflect uncertainty around country risk,grade production,cost and timing of the development.Our valuation assumes the Tanzanian governments is free carried for a 16% interest in the Lindi Project..
Comments
Walkabout Resource purchased the remaining 30% while also in creasing our cash position by 10.3 million dollars. The in country risk jumped from 12% to 50% even though many positive steps from formation of the ministry commission has been resolved while 7000 license plus 8 are in circulation and recent positive discussions directly with the mining commission minister.
With no consideration for right size concepts the author has decided to reduce our thru from the robust DFS right size modeling concepts to 500 tons per day and effectively doubling our ROM costs.... Reduced the basket price to $1222 all at a time when basket price's are appreciating beyond our DFS figures.
Of course this can not be true and was this validated first by our professional management team.
(Doubtful)For the record the plant and modeling is designed to run at 1000 tons per day for 300 days of the year. Eleven hour days and not night shift at 92% efficiency with 90% recovery... The next report I hope is at least more accurate based on DFS modeling and can we assume our management are at least engaged considering the reader base expands beyond the reports intended target market once on our
www.wkt.com.au
The inconsistencies are not managements and the fundamental did not change so why are we being valued at 22 cents?
For any one considering an alternate report jump on the WEB site. Breakaway research from 2016 by Grant Craighead Research manager and Mark Gordon Research Analyst. Also from March 2017 where a mid point of 62 cents was chosen.
Croc
