Wolf Minerals Ltd (ASX: WLF)(LON: WLFE) has released a quarterly update on operations at its Drakelands tungsten mine in Devon, England.
During the period to end December 2017, tungsten concentrate production rose by 22%, while sales rose by 36% on the previous quarter.
This occurred against the backdrop of an improved tungsten price, now currently standing at US$315 per metric tonne unit (mtu).
The company has now implemented the majority of its plans to turn the operation around, and remains in negotiations with its creditors regarding payments that are due imminently.
Net cash used in operating activities for the quarter was A$8.5mln, including A$3.6mln spent on development, A$16.3mln on production and A$3.9mln on finance costs, with revenue of A$15.8mln.
The company had A$6.6mln cash at the end of the quarter, with further funding discussions in progress to support revenue, on a forecast gross cash outflow of A$27mlnfor the coming quarter.
Wolf currently owes major shareholder RCF £55mln, and to date RCF has been very supportive.
Wolf's interim managing director Richard Lucas characterised the results as: "another strong result for the third consecutive quarter as the improvements from the operating turnaround plan are being realised.”
He added: “The processing plant performance is benefiting from a more stable operating environment, allowing optimisation efforts to start building upon each other. We expect this to continue with further enhancements to our mine plan, the improvements from the gravity fines circuit and the return to 7 days operations.