Australia's largest stock trading and investment forum Australia's #1 stock forum

WKT

Click for more information

0.00%

9.5¢ walkabout resources ltd

What is also important to undertsand is that WKT can be custom...

First 121 Last

Share
Profile

Follow
oznt

865 Posts.

676

07/03/19

07:35

Post #: 37679635
Share

Originally posted by Croc-file ↑

-SK-81 The DFS will be more likely be written to advance finance funding while the detail should remain conservative. The DFS will demonstrate its capacity to operate in both robust and price tension markets. Price tension occurs in an over supplied market where commonly referred to as a "Price Takers Market"

A Price Takers Market is an individual or company that must except prevailing prices in a market ,lacking the market share to influence market prices on it's own. All economic participants are considered to be price-takers in a market of perfect competition,or one in which all companies sell an identical product ,there are no barriers to entry or exit. every company has a relatively small market share,and all buyers have full information of the market. This holds true for producers and consumers of goods and services and for buyers and sellers in debt and equity market's.

A price makers market is where supply is limited with no reasonable substitute.A free enterprise system where prices are greatly determined by supply and demand. Buyers and sellers exert influence over prices resulting in a state of equilibrium. How ever in a monopolistic environment ,one company has absolute control the supply released into the market allowing that business to dictate prices. (Research note Investopedia)

Management have a strategy to grow into known markets but what truly gives us appeal...What differentiates us from peers to build a compelling business case among other reasonable projects.It's not resource size,it's not high volume high NPV projects with high start up capex, It's not grade alone and it's not being highly suited to just one or 2 or 3 markets. Battery,refractory or cubicle...

To differentiate you must demonstrate a difference that the market requires and if you need to differentiate it needs to have a purpose. Recap it's not grade alone....Grade alone such as high grade can be found at SYR. We have high grade as well but what differentiates us... What differentiates Lindi graphite is the distribution of basket that is suitable for alternative premium markets. Premium markets from expandable and niche markets that others can not produce. Distribution is the make up of your basket ranked in flake size and delivered as graphite content. Dried and packed in bags ready for market.

Lindi is going to deliver 4 flake sizes as follows with 75% of basket suitable for expandable and niche markets. Current supply and markets are constrained by lack of supply. While to differentiate Lindi graphite is rated best in class limited in nature and not under pinned by
lower priced vanilla markets refractory markets and cubicle...Assuming binding agreements are required for 30,000 tons for time limit a discount will be applied to prevailing markets. First to market will gain advantage with a price makers mentality for any other expansion potential beyond 30,000 tons per annum.

You can rest assured that management are fully versed on this concept and why we need to better understand why growing into known markets offers extra value. Build the plant and they will come...How long to build a position at 180-200 TPA is not beyond the resource and not even close if required IMO. To extract value the concept of growing into known markets may disappoint those looking for high NPV projects but applying the business man suit the strategy is almost perfect...It just can not happen soon enough

This plant and resource will deliver at highest margin's per ton mined at the lowest capital intensity per ton mined.The new DFS has not even arrived yet but the kicker IMO will be mobilastion along first RAP payment,binding agreements for 30,000 ton's.

View attachment 1469525 View attachment 1469527 Conservative but spectacular mitigated with a unique product differentiating into premium expandable and niche markets into developing markets limited by supply .

Croc out riding a Bull's "22 second's last time..."

Expand

What is also important to undertsand is that WKT can be custom supplying a specific formulae blend as per an end user request with our high grade, high purity natural large flake sizes with great expandable ratios.

For example :
If an end user requires a specific 250um for their end product or 350um that is outside the typical product ranging and it has the appropiate volumne, then WKT can provide that specific additional customised PREMIUM service with modifications to the plant that the end user would bear one way or another. $$$

Last edited by oznt: 07/03/19

WKT Price at posting: 13.5¢ Sentiment: Buy Disclosure: Held
11 Upvote

0 Great analysis

Reply

Top Stories

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

CXM

'Taking money from the market': Garbage giant cleans up as this week's Hot Stock tip

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

There are more pages in this discussion • 29 more messages in this thread...

First 121 Last

Add WKT (ASX) to my watchlist

(20min delay)
Last 9.5¢		Change 0.000(0.00%)		Mkt cap ! $70.48M

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

WKT (ASX) Chart

Day chart unavailable