@Croc-file -- As you can see from the calculations the end...

@Croc-file -- As you can see from the calculations the end result is able to generate an additional $40M AUD over and above due to just the AUD dropping from 75c now down to 45c.

What it also provides is another layer of derisking in the project.

In essence the basket prices for WKT can sustain downward pressures of approx. 30% and still be viable and still quite possible to return $60M AUD which is what was originally forecasted at 75c AUD before coronavirus.

Other graphite projects simply do not have that luxury as their projects do not have enough sustainable Free Cash Margins to begin with and it would be an additional terminal stress test that most projects simply will not be able to endure.


I agree with Stevo, you never go broke taking a profit.
Great advice indeed for a trader and irrelevant for a long term investment based on outstanding fundamentals.

For many other Graphite investors in other graphite stocks, its a pity they were not able to
include drilling down and doing their own intensive research to properly understand what they are investing into and comparing what others around you may be able to achieve and not achieve.

As you know I have quite an indepth understanding on what a graphite deposit and all the other features to a project need to look like in order to be able to achieve funding, reach production and be profitable.

It took a considerable amount of time for intensive research and I went to extraordinary lengths to educate myself in the graphite space and fully understand enough to comprehend funding requirements and be able to identify what projects can be funded , what may get funded and what wont be funded.

A lot of very ignorant graphite investors got burned with SYR (from $6 down to a low of 15c) due to not understanding what they have invested into, because of its complexities and its because graphite is not a commodity, but most importantly they did NOT understand the importance of STRESS TESTED Free Cash Margins and the generated Cash Flow Forecasts. It applies to ALL Graphite projects.

Most typical investors do understand and comprehend the typical commodities as their is a massive amount of data out there. Graphite at the moment does not, it requires a great deal of research to understand it, including ALL the complexities of a Graphite Deposit to becoming a funded project to reach production.

The outstanding fundamentals of WKT is what will see WKT get funded and be greatly profitable once in production. I can not say the same for most of the others out there. There is a reckoning coming in the Graphite space IMO. Its going to be a very painful experience and without proper research and understanding, it is going to be painful lesson, learnt the hard way.

I do monitor most of the other graphite plays announcements here in Aus, UK and Canada and I occasionally view the other Graphite forums and what is clear to me is that their is no conviction upon the merits of their preferred projects where they have parked their investment dollars.

We and others have for the past couple of years provided enough material on WKT to enable investors in other projects the ability to understand the graphite space and demonstrate what separates WKT apart from everyone else.

The most critical part of any project is having enough Free Cash Margins, that can provide a stressed tested cash flow forecast that can comfortably cover the Capex required Debt to Equity ratios.

Now with the added Coronavirus pressures, for all the other Graphite Hopefuls with already unfinanceable projects and cash burners, unfortunately I can see a wave of voluntary administrations occurring sooner now rather than later that will wipeout those investments.

The only other potential graphite concentrate play to get financed may be TON that has its own set of risks to their shareholders in the future as will get Taken Over cheaply in due course IMO.

An exciting time for WKT either way.