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W Resources looking forward to "active and productive 2017"

Published: 15:53 03 May 2017 BST

Tungsten
Tungsten prices are off the floor

Tungsten producer W Resources PLC (LON:WRES) said shortages of tungsten concentrate are emerging, which bodes well for tungsten prices.

Already this year the price of tungsten has recovered to around US$215 per metric ton unit (mtu) from an average of US$198 per mtu in 2016.

Reporting on 2016, a year in which it substantially advanced its tungsten, copper and gold assets in Spain and Portugal, the company said Régua, its high-grade tungsten mine in northern Portugal, will be ready for development in 2018 at a target production rate of 1,300 tonnes per annum (tpa) of tungsten concentrate.

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Meanwhile, at La Parrilla, its flagship tungsten and tin project in Spain, key milestones last year included an upgraded JORC resource estimate, mine plan optimisation, the first blast and mining in the Fast Track Mine (FTM) area, and commencement of production and shipments to USA customers in the final quarter.

Tin prices have risen to around US$20,000 per tonne from US$13,500 per tonne at the beginning of 2016, while copper prices have also recovered well, the company noted.

Gold, of course, has also been on the recovery trail, with the price predicted to advance to US$1,250 an ounce this year and more than US$1,300 an ounce next year.

So, although losses in 2016 widened to £854,000 from £606,000 the year before, this was on a very low revenue base of £140,000 – up from £82,000 the year before. With a full year of production from La Parilla and recovering commodity prices, the outlook is brightening.

The immediate focuis is on expanding La Parrilla's production capacity

W Resources said its immediate focus is to conclude the financing and development for the expansion of La Parrilla to produce 2,500 TPA of tungsten concentrate.

“The team are also making good progress with development at Régua and planning continues on the spin-off of Copper Gold Resources PLC. The near future is extremely exciting for W Resources across both its tungsten and copper / gold projects and we look forward to an active and productive 2017," said Michael Masterman, chairman of W Resources.

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