In a production update for the three months ended 30 June 2018, the AIM-listed miner said tungsten and tin production were up 41% and 67% respectively over the last 12 months with record throughput in June while a pre-processing trail to upgrade ore feed to over 1% WO3 (tungsten trioxide) had been successful and an operating plan was being accelerated.
The company also highlighted that tungsten prices had risen by 6% during the quarter to US$347 per metric tonne unit (mtu), its highest level since 2014.
Wolf added that it was also seeking around A$7.1mln in additional funding from financial stakeholders in order to support short term cash flows as it progressed its transformation activities in the September quarter, with the first stage of discussions expected to conclude and reach agreement shortly so that the first tranche of funding of around £2mln was received before the end of July.
Richard Lucas, Wolf Minerals’ managing director, said the additional volumes recovered in the period had “provided a more stable operating environment which has driven tungsten recovery and product quality improvements”.
He added that the positive ore pre-processing trial results had “encouraged the company to accelerate an operating plan to enhance tungsten recovery and improve operating cashflows” while the tungsten market remained strong.