Great to have confirmation the SPP is behind us with some lingering consequences. Dilution behind us with Debt funding now to be sourced.
Plant and equipment to be delivered to site...
The release of video gives a view of managements intent while I remain cautious until achieved. Actions speak more than words and will give praise when executed. (Lesson learnt)these video's have proven to be miss leading...
https://hotcopper.com.au/threads/an...4528693/page-23?post_id=36450925#.W-alEtUzbIU
The video indicates a very positive outlook for high grades and possible reserve upgrade. Funding already secured will see delivery of plant and equipment to site. RAP plan completed a time consuming process with many months dedicated towards this effort from Compensation for disaffected person's,farming,School roofs,water bore pumps,concrete and sponsor ship along the way. An integrated process with sacrifice from Allan Mulligan taking up this charge.
Updated DFS
Walkabout Resource already have a Robust DFS in place with an EBITDA of 46 million per annum. Whats important to keep in mind is the DFS was done using 10 year low price more conservative than all peers by margin. There was an accepted dialogue that this is how to obtain the best leverage dealing in Tanzania. To down play while achieving a mining license as not wanting to sound to profitable.
A conservative US $1534 per ton less $352 margin US $1182
The new DFS should be able to give us a much better reflection and direct comparison to peers. Looking forward to bench mark comparison similar to what peers have used.
If not why not...?
Country risk is another pointed point which will cause much discussion with variance
from 10% to 50% being alarming. Which one will management and due diligence go with? If all the competition are using 10-12% then 50% will send alarm bells IMO.
Why us? Watch out for parachutes...
When the
DFS arrives all eyes will be on but at the same time all
eyes will be on the lookout for parachutes. I am clearly focusing on the fundamental's and not the suppression of share price..
From GPX Please note out of spec at 88.6% TGC >300 micron flake size while WKT is within spec now achieving from 94- 98% purity with out chemicals.Higher purity with retention of flake size adds premium value. Large a super jumbo limited in nature with little competition. Walkabout Resource have a world class resource best suited high value add products
Expandable and Niche markets. Down stream processing producing high value graphite sheet foils,fire retardants exterior cladding. Huge markets only limited by enough natural supply.
Being first to market gives a huge advantage to capture market share and high end branding.
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The current DFS is very positive however the potential for upside to be achieved. The higher grades from surface will further reduce ROM from $292 plus $60 delivered to Port Mtwara. We already have highest margin per ton mined with the lowest capital intensity. The current plant design can 3000 ton per day if it is confirmed to be same one being built by our J/V coincidentally a project for Lindi in Tanzania. Highest margin curve per ton mined is king with select feed grade possible due to being very distinguishable to lower cut off grade at 8% TGC. A high quality mine can support a higher strip ratio value.
I am assuming the cells to be added for expansion are the flotation process not the milling and grinding process. Very easy to expand up to 120,000 TPA IMO.
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Looking forward to the updated DFS with Ultra high grade section and have included current prices from GPX basket distribution with no country risk operating next door. What should also be noted is the higher purity level within spec being achieved by Walkabout Resource Lindi graphite
Rated at best in class. Four discrete products to be produced in balance with what the market requires. Premium products offering huge potential while remaining at basic mining principles. The project is still to be optimised.
Each current off take partner requiring all 40,000 TPA with current DFS at 40,000 TPA. We know management want to grow into known markets with certainty and not to over capitalise. A balance between being prudent and achieving maximum benefit.
Vanadium study still ongoing a bolt on facility to extract the vanadium from the gangue that reports to tailings.
A potential bonanza...with a potential 24,000 tons...
Croc on watch for "Parachutes..."
(20min delay)