Good afternoon longreach and appreciate your sentiment from an all inclusive forum. I love this Hotcopper site and the opportunity it has given us to discuss this stock and more. What a learning opportunity it has provided for both the positive and the negative there should be no topic we can not discuss while staying on topic.
Nimrodel was a possible mistake with all control left up to the development of a Rail system. A rail system that relied on a government support and unable to fund their own infrastructure.
Enter Allan Mulligan
Allan Mulligan a current director and stood down as CEO to take a position in Tanzania to over see RAP and be a central negotiator of all activity on the ground in Tanzania. Allan moved to Nimrodel during the process of proving up the 5 billion ton resource. I can only imagine his frustration knowing the whole strategy was wrong but his arrival was to late to save Nimrodel but not the company. Today Walkabout Resource is on the cusp of greatness pioneered from a unique strategy that bucked the trend.
At the time SYR were incredibly successful growing to a 1 billion dollar market cap. Others were joining in TON,MNS,Volt all going from strength to strength proving up ambitious NPV projects all wanting qualification for the impending battery boom. Kibaran were going to be boutique with a modest 40,000 TPA but largely refractory due to distribution of basket. The early success of SYR encouraged other high NPV projects using economy of scale to justify poorer grade with deep resources. What could go wrong...? Funding issues
Take up of Battery graphite has been great but supply far out ways demand making for a price makers market. Ambitious price assumptions lack of funding from an over supplied market are taking their natural course with economy of scale projects in jeopardy.
Allan and his experienced team copped an early wack but being visionary allowed them to sure up an outstanding license in Lindi and expansion license. High quality grades from surface,small volume,low capex robust project to mitigate start up risk. Targeted premium expandable and niche markets. Secured funding,3 x MOU's in place open in all directions with high grade in out crops at surface. Every thing done was to mitigate start up risk with a plan to grow into known markets with certainty.
Today with we have 3 off /take partners all wanting 40,000 TPA. DFS was done to modeling the most conservative set of numbers. These conservative numbers which was stress tested at 10 year lows are the same that Walkabout Resource use for estimations with no ramping. Unbelievably after stress testing we still have the highest margin curve to peers..
We can stand up to any factual discussion for critical assessment and will take up discussions and comparison with a competitor. Weather it be RAP,Grades,depth,
distribution,expansion targets,purity,refractory,expandable markets,niche markets,capex ROM,Mine to gate and shipping,funding and sovereign risk.
Bring your numbers here for comparison
Croc
WKT Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
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