WKT 3.57% 29.0¢ walkabout resources ltd

You need to include in any assessments their flake size...

  1. 986 Posts.
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    You need to include in any assessments their flake size distribution, fractions % rates, purities and recover rates, basket prices and Working Capital Requirements etc.

    The G Play your referring too are a battery market operation and going to process their graphite and supply spherical graphite direct for batteries as this will only be the way for them to make profits to pay off the project in 4 years as their Capex is still monstrously high.

    Your comparing a Watermelon to a Grape.

    The Opex for WKT $347 USD / Ton and her free cash margins are approx. $1,168 / Ton.
    (In the Upside Report I used conservative numbers $1,000 / Ton)
    https://hotcopper.com.au/posts/38546632/single

    WKT has plenty of wriggle room if Opex costs were to even BLOW OUT by 100%. Battery Grade operations simply do not have that luxury and will shut down just like the IMERYS Graphite Mine in Namibia. More than comfortable with our Opex and cushioning margins.

    Their saving grace on opex costs is the high TGC grades that aids their financial modelling BUT they are dominated by battery grade fractions. They certainly don't brag about their flake size distribution as they were not blessed like WKT with her Graphite Deposit.

    With out drilling down into them, they had big spikes in SP - just like SYR and have consistently declined ever since.

    Way to many insto's involved for my liking - actually scary how many there are BUT the capex is monstrously high. My first impression was they are trapped in an ongoing yearly decline in SP for more than a few years now.

    They intend to down stream their battery grade graphite fractions and will need to do so.
    That is what most of the low grade operations will end up doing to boost bottom lines and cater for demand IMO and will give them an edge in time to come.

    There will be plenty of room for all the graphite hopefuls in the battery market over the next few years and the global market will still need more IMO.

    When I first looked them over in late 2017 early 2018 - I PASSED ON THEM.

    I didn't invest in WKT to be predominately in the battery market sector.

    I invested in WKT because of the Premium $$$ Expandable Market and her other promising looking International Projects in Namibia and Northern Ireland at the time. Now we also have a promising looking Scotland exploration project.
 
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