Based upon WPG's quarterly activities report and cashflow report as at 31 March 2017 I have estimated that there would not be a working capital shortfall at the end of the June quarter as per the table below.
Obviously the capital raised in the placement last week ($7.2m) and the proceeds from the 1 for 8 entitlement issue to shareholder (est. 95m shares at 0.048 for $4.56m), ie a total of $11.76m is going to be used to increase the capacity of the plant to 800k tpa sooner rather than later and also to drive the exploration and development of CW, Challenger Deeps, M3, SEZ and Animus.
I for one don't think Bob is stupid enough to raise what appears to be surplus working capital if he didn't have a plan to use this to increase shareholder wealth. So, for me, its a wait and see what he has go up his sleeve but I am confident he will deliver in spades.
WPG Price at posting:
5.3¢ Sentiment: Buy Disclosure: Held
