WA Kaolin
(ASX:WAK)
WA Kaolin was initially established in 1998 to acquire a 10,000Ha kaolin project and tenements from Rio Tinto.
Having acquired these tenements, WA Kaolin developed proprietary wet and dry process methods for refining kaolin. During this period, in the absence of access to equity funding, the Company invested $42 million into the project by way of loans and personal guarantees.
In 2017, x10 Partners first began working with WA Kaolin to assist with attracting the equity funding necessary to take the business into volume production. Today, WA Kaolin is an ASX-listed entity, fully funded through to volume production and cashflow positive operations.
WA Kaolin is targeting a progressive ramp-up of production over the coming years to become a leading supplier of kaolin.
x10 Partners' Role
x10 Partners’ initial focus involved a review of the WA Kaolin business plan and an end-to-end value chain analysis. x10 Partners identified and proposed a significantly less capital-intensive, lower risk and swifter pathway to profitable cashflow and positive operations.
This resulted in the business pivoting away from capital intensive wet processing targeted at paper and packaging markets to dry processing targeting other kaolin end market verticals such as ceramics, fibreglass, paint, rubber, and other materials.
x10 Partners also identified the optimum capital pathway that best served the business and the owner’s interest would be via an ASX listing. x10 Partners helped WA Kaolin develop an investment-grade business plan, financial model and supporting materials to guide and prepare the business for the public environment.
x10 Partners assisted in the negotiation of offtakes and a cornerstone investment by a major global kaolin distributor in the lead up to pre-IPO.
Testimonial
"x10 Partners has been instrumental in enabling WA Kaolin to understand the capital market options and to access the capital necessary to fund our world class kaolin project through to volume production.
x10's guidance in optimising our product mix and go to market strategy, assistance with the negotiation of a key strategic off-take agreement and advice on company structure changes in preparation for the public capital markets has greatly contributed to our success to date"
- Andrew Sorensen, CEO
Journey Timeline
WA Kaolin mandates x10 Partners as business and corporate advisors to identify the best path and to support the business through to commercialisation.
WA Kaolin focus pivots from capital intensive wet process and paper industry markets to less capital-intensive dry processing with a focus on ceramics/porcelain, fibreglass, plastics, paint and pigments and polymer/rubber
WA Kaolin finalises financial model and business plan in support of the new focus
The Company engages lead brokers and professional services and creates a timeline and plan to IPO
WA Kaolin secures offtakes and cornerstone investment from a major global kaolin distributor
WA Kaolin undertakes a pre-IPO, raising $7.65 million
The Company is admitted to the Official List of the ASX on the back of a heavily oversubscribed $22m IPO