Potential Upside of WKT - Expandable Graphite, page-2053

Did you actually read the last couple paragraphs of my last post ?

* BIG GIANT HINT FOR YOU.
Pay attention to our first 2 Binding Offtake Agreements.
1 is building a NEW manufacturing plant and the other is EXPANDING their existing manufacturing plant.​

Demand is not weak, it needs to be carefully synchronised to the buyer who sees and know the demand that makes it worthy of them to make the appropriate investment into their manufacturing plants.

WKT has a Binding Offtake Agreement from a company that is building a NEW Expandable Graphite Manufacturing Plant and ANOTHER Binding Offtake Agreement to EXPAND an existing Expandable Graphite Manufacturing Plant.

They clearly want the WKT product and are locking them selves into position to ensure they have continuity of supply (should be obvious to any investor) to ensure they don't harm their own business investment.

They are building a NEW Manufacturing Plant and Building Extensions to their EXISTING Manufacturing Plant and intend to be purchasing WKT Expandable Graphite, for the next 3-5 years.

Now when you consider the rapid payback of the debt is likely to be completed within 2-3 years. Pretty safe and sensible ordinary standardised business practice.

HOW is that a SMALL or WEAK MARKET when you have committed buyers to your product beyond your debt repayment term ?

Your assessment is INCORRECT.

Expandable Graphite Manufacturers must have confidence in their own businesses to invest millions of dollars to build NEW or Expand their existing business operations.

These manufacturers need to synchronise with the Mining Companies and the Mining Companies will need to synchronise with the manufacturers.

No point spending Millions of dollars building plants if you cant get supply and No point in Mining the product if Graphite Manufacturers have not yet made those investment commitments.

This is why it is essential that companies require Binding Offtake Agreements to be put in place as it is more than just a beneficial relationship between 2 parties.

They become trigger points for the Buyer and Seller to also commit their investment decisions as ONE cant do with out the other at this early stage of the Expandable Graphite Market.

It would be FAIRLY safe to say our 2 BOAs, have most certainly a WAY far better understanding of their business activity than you and I would ever have.
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