Ann: Quarterly Cashflow Report, page-2

@semi retired

Hi Semi,

Can you please explain this to me,

WKT announced,

The Bridging Debt will be used to meet due diligence and operating costs of the Company including the continued development of the Lindi Jumbo Project until further project financing is available. The significant terms of the bridging loan are:

As you can see in the QTR cashflow report, WKT has $1.4mil in cash (image below)



With a planned expenditure of $1.7mil for the December QTR (image below)



This would be a shortfall of operating cash flow of $300k.

What I cannot understand, if the company just borrowed $5mil from shareholders to advanced the Lindi project, why is the forecast expenditure only $500k on development (9.2) planned for the current QTR?

It seems to me that the Loan from shareholders was marketing to push up the shareprice when you consider the expenditure for the September QTR was $3.35 mil, (image below) with development 1.2 (b) making up nearly $2.4 of the total expenditure.





Based on the forecast expenditure it would appear that WKT is not advancing the Lindi project as detailed in the ASX announcement. $500k planned for the this QTR is 1/5 of the expenditure of the previous QTR.

IMO WKT could have asked a few T40 option holders to convert some of their options early or requested a smaller short term loan from Mikes, his $1.9 mil loan would have covered the company until the $6mil in options are converted on the 31st of December,

I get the feeling the Bridging loan was being used as clever marketing, based on the QTR cashflow expenditure, there is nothing to suggest a $5mil loan is required.