W Resources PLC (AIM:WRES) produced 89.7 tonnes of tungsten concentrate (WO3) during the fourth quarter of 2021.
Five shipments were made during the period, four of tungsten concentrate and one of tin concentrate.
Production in the fourth quarter was impacted by a two week delay in blasting, heavy rainfall, and the need to drain the open pit.
Following the period end, W Resources now has access to higher-grade portions of the La Parrilla ore bodies, the open-pit has been drained of water, an area has been cleared for the crushed ore stockpile and improving preventative maintenance is helping reduce processing challenges.
In January 2022, the company produced 42.7 tonnes and 2.1 tonnes of tin concentrate and made three shipments.
Following a poor fourth quarter the cash position was lower than expected and a subsequent significant increase in the price of liquid natural gas has added an additional complication.
As a result, the company will need to raise funds in the very short term. The company expects to complete this fund raise, which is expected to be in the form of debt, later this week.
The additional funding will in part be used to fund some items of capital expenditure at the mine as well as providing an increased working capital buffer.