WA Kaolin reports $5.5 million net loss in H1 2023

WA Kaolin Limited (ASX: $WAK) reported a net loss after tax for the half year ended 31 December 2023, amounting to $5,550,474. The company's cash reserves stood at $3,910,412 as of 31 December 2023, reflecting an increase from $3,093,776 as of 30 June 2023. The net asset position of the Group also increased to $10,250,016 as at 31 December 2023, compared to $9,800,491 as at 30 June 2023.

Executive Commentary on Company's Operations and Future Plans

The Company is pleased to report that there were no significant health, safety, or environmental incidents during the half year. WA Kaolin Limited is primarily focused on establishing itself as the preferred supplier of high-grade premium kaolin products globally. The company aims to achieve this through continued production ramp-up of its processing plant in East Wickepin, utilising the K99 Process, and investment in new classifying equipment to refine the production process and increase the output of finer kaolin. Additionally, the company plans to progressively increase production to circa 200,000 tonnes per annum through the plant and expand production capacity at the Wickepin plant to 400,000 tonnes per annum through the installation of a second stage of production equipment. WA Kaolin Limited is also negotiating sales agreements for product on suitable commercial terms with acceptable counterparties and investigating further processing expansion, including the construction of an additional wet processing plant to produce product suitable for use in premium paper and packaging markets.

Summary of WA Kaolin's Corporate Strategy and Outlook

WA Kaolin Limited reported a net loss after tax for the half year ended 31 December 2023, reflecting the company's ongoing investment in production ramp-up and expansion. The company's focus on establishing itself as the preferred supplier of high-grade premium kaolin products globally is evident through its strategic initiatives, including production capacity expansion, negotiation of sales agreements, and further processing expansion. With a goal to achieve positive operating cashflow by the end of 2024, WA Kaolin Limited remains committed to its corporate strategy of becoming a leading global supplier of high-grade premium kaolin products.