C'mon Esh, You're sounding like a toddler who is throwing their...

C'mon Esh,

You're sounding like a toddler who is throwing their toys out of the cot.

You must have known that WAF as a mine developer were going to need to raise funds to build the mine.

You must have known that as part of that process equity would have been required.

You must have known that this equity would be raised at a discount to the VWAP.

To make statements that the upside is now gone and "woe is me" is completely bollocks.

Most junior developers require 50:50 debt and equity packages to attract funding. The fact that WAF have achieved 85:15 should actually enhance the eventual upside for shareholders, not detract from it.

The allocation of the funds is clearly broken down by the Presentation. Of note:

(1) $15m for exploration ... they will be looking to add to the R&R and thus the LOM and NPV

(2) $33m Corporate and working capital ... they are ensuring that they are bullet proof until first FCF from the mine and don't have to come, cap in hand to the market if they experience delays with mine construction, especially if markets turn down in the interim.

(3) $45m in finance costs ... all obligations are fully funded until 11/2020 when, if all goes well WAF will be generating FCF.

The total funding package is A$358m.

Applying a 'normal' 50:50 split would assume A$179m of equity required.

You should be very appreciative that management have negotiated only A$48m of equity.

However, let's play the game and assume that under a 'normal' model, management raised the capital at a premium the last share price of, say 10% as the project is so good.

That would mean a total of:

A$179m / 33c = 542m new shares issued

But, management have achieved:

A$48m / 25c = 192m shares issued

That is far less dilution that you would have seen if a 'normal' model was imposed by financiers.

You will also note that there are no attaching Options either.

By your rationale, management would be damned if they do, damned if they don't.

If WAF was sitting around twiddling their thumbs in six months time you would be moaning that it was just a "Lifestyle Company" for overpaid executives.

Management are getting on with it and dilution, whilst inevitable, has been kept to a minimum IMO.

I have been hitting the ask today.

Cheers
John