WKT 0.00% 24.0¢ walkabout resources ltd

64c IIR Report - Quality Data

  1. 1,113 Posts.
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    To read an actual Quality and Professional Independent Investment Research Report that was released 19 March 2019.

    CLICK THIS LINK​
    https://www.wkt.com.au/wp-content/uploads/2019/03/190319_WKT-IIR-Research-Report-update.pdf

    snip - IIR - who is IIR statement - quality.PNG


    The Paterson 5 page note is simply so lacking details it consists of really only 3 pages of standard
    cut & paste with glaring errors, omissions and​

    It just simply does NOT compare to the quality of the professional IIR Report that is 29 pages.

    1st Point.
    WKT does NOT just have 2 Term Sheets. (KEY word missing "BINDING")
    WKT in fact has 3 BINDING Term Sheets with 1 being a Binding Global Sales, Purchase and Marketing Agreement who will also handle future Offtake Agreements, Distribution and create brand awareness for 5 years, who also is providing a working capital facility once the product hits the dock.

    02/04/2019 - 1st BINDING Term Sheet announced
    09/04/2019 - 2nd BINDING term Sheet announced
    11/04/2019 - 3rd BINDING Global Sales, Purchase & Marketing Agreement

    18/04/2019 - Paterson Note released 7 days after the 3rd BINDING Announcement and yet still states 2 Term Sheets and a trading house agreement.

    Selective statements and convenient timing and a fear of using the word "BINDING"

    2nd Point.
    "NO ASX SPEEDING TICKET YET"statement.
    For someone in the corporate game (and advising clients) who should know what Binding Agreements can do to a share price should know a speeding ticket is unlikely because not only did WKT make 1 significant announcement, the company made 3 BINDING announcements in 9 days.

    3rd Point.
    "Offtake agreements are positive, but funding strategy uncertain"
    BINDING agreements are VERY positive INDEED.

    4th Point
    "Offtake agreements not robust enough to support traditional debt financiers conditions, in our view."
    Will BINDING offtakes work ; )
    Highly robust profitable mining operation with 3 BINDING Agreements, 2 MOUs and 1 HOAs that clearly demonstrate growing into known markets beyond 40K TPA will be robust enough with the right debt financier IMO.

    With 3 Binding Agreements in 9 day in such quick succession will have fast tracked many discussions.

    5th Point
    "We still like the Lindi Project, and we believe its relatively low capex estimate of $27.8m can be funded (working capital will also be required), but is unclear how the Project will be funded."
    We like the Lindi Project too and its low capex as per the DFS $27.8m (applause warranted as something actually correct from the DFS).

    Working capital facility included with the 3rd Binding Agreement PLUS the $6M AUD from the option conversion at the end of the year (31 DEC 2019).

    "Its unclear how the project will be funded"
    Its unclear how an analyst is able to write this note when all the simple, factual and readily available data from announcements is out there, but cant see it and expect creditability with seeing much more complex issues.

    6th Point
    WKT has delivered an updated DFS (Definitive Feasibility Study) on the 7th March 2019 (6 weeks ago).


    COMMODITY ASSUMPTIONS
    The pricing for our basket price in the updated DFS is $1,515 yet the analyst sticks in a number $1,222 and predicting it to be the same price up to 2021/2022.

    PRODUCTION SUMMARY
    Ore Milled numbers should read 230K TPA -- not 210K TPA
    Production is a self imposed 40K TPA -- not 36K TPA
    (These numbers are in the updated DFS 2019)

    I would assume the analyst who is after all advising clients in a professional capacity has read the Updated DFS released 6 weeks ago and the IIR Report that was released 4 weeks prior and still proceeded to write up the current Paterson note in such a way.

    AND THERE IS MORE INCONSISTENCIES.
    Top 5 Shareholders named are wrong - AGAIN.
    Assumes production in late 2020
    50% Risk on Finance alone ? even when we have a high grade low capex operation with 3 BINDING agreements.

    CREDITABILITY SHOT Mr Can Hardley Read a DFS.

    snip - paterosn footnote - without responsibility or liaibility.PNG
    "All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility or liability on any account whatsoever on the part of this firm or any member or employee thereof."

    You may as well include in the footnote (please wash hands after flushing).

    Here I was thinking you had an obligation to your clients, the firm you work for, including potential future clients and investors to at least provide the known facts so an informed decision is not put at risk.

    *******************************

    To read an actual Quality and Professional Independent Investment Research Report that was released 19 March 2019.

    CLICK THIS LINK
    https://www.wkt.com.au/wp-content/uploads/2019/03/190319_WKT-IIR-Research-Report-update.pdf

    ***********************************************************

    To read the UPDATED DFS that was released 7 March 2019

    CLICK THIS LINK
    https://www.asx.com.au/asxpdf/20190307/pdf/4438vk96dh2yw4.pdf
    Last edited by oznt: 19/04/19
 
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