Walkabout Resources, focused on African operations, announced that ongoing port congestion at Dar es Salaam has delayed graphite concentrate shipments from its Lindi Jumbo project in Tanzania, creating a cash flow challenge for the company.
The shipment delays, affecting over 1,500 tons of graphite, are now expected to extend exports into early November.
As Walkabout receives 80% of shipment value upon loading from its partner Wogen, the delay significantly impacts its cash flow.
In response, key directors and shareholders have extended short-term relief through bridging loans totaling A$600,000 to support working capital.
To address its cash flow constraints, Walkabout has negotiated an extension on its debt obligations with senior lender Gemcorp.
The lender agreed to defer the September interest payment to November 11, 2024, and provide an additional $500,000 under the facility’s tranche B.
Walkabout will pay an extension fee of 3% and an added 5% interest, which will be capitalized until refinancing. The company also must inject an additional $5 million into Lindi Jumbo.
Despite the challenges, Walkabout notes strong demand for Lindi Jumbo’s graphite, with customer requests in 2024 exceeding forecast production. Operational metrics have improved over September and October, and production is on track to meet the 40,000-ton-per-year target by early 2025.
