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(WRES) W Resources Share Chat

Discussion in 'General Share Chat (WRES)' started by mart101, Jul 15, 2015.

  1. Groucho

    Groucho Member

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  4. Inspiration

    Inspiration Moderator Moderator

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    Tungsten
    Outlook to 2028, 13th Edition
    View ReportMake an Enquiry
    Download Sample Download Brochure
    DETAILS
    Publication Date:12/03/2019
    Price: Enquire for price

    The tungsten market has recently witnessed several years of volatility and is currently undergoing another period of change. In early 2017, the refractory metal had just started to see the first signs of recovery following a downturn in its largest end use market, the cemented carbide sector, where demand had been suppressed in the traditional consuming bases of the USA and Europe. Prices were also shrugging off the spectre of the failed Fanya Metal Exchange in Kunming, China, in which ammonium paratungstate (APT) had been traded and ultimately stockpiled.

    These factors, combined with improved market demand in the oil & gas and automotive sectors, called for greater volumes of tools and their raw materials, such as tungsten. This coincided with the Chinese government launching a widespread programme of environmental reforms, focused across a swathe of Chinese industries and notably at tungsten mine and smelter sites.

    China has for several decades been the world’s largest mine and refined producer of tungsten, accounting for just under 80% of mine output in 2018, according to Roskill analysis, or some 61kt of contained tungsten metal. It is similarly dominant in the production of the tungsten intermediates APT and tungsten oxide, and of tungsten metal powder and tungsten carbide. A large proportion of this output feeds the country’s substantial cemented carbide tool sector, but there is also sizeable export of tungsten refined and finished products to the rest of the world – making Chinese mine and refined production of tungsten integral to conditions in the global market.

    The environmental inspections thus had an immediate effect on tungsten availability, with APT prices buoyed to several-year highs; in September 2017 the European APT price peaked above US$300/mtu, having only recovered to US$200/mtu at the start of the year. The turnaround in tungsten market fortunes continued into the first half of 2018 as environmental clampdowns in China continued. Year-on-year demand for tungsten also rose by nearly 5%, contributing to tightness in supply. APT prices peaked at US$350/mtu in June 2018, before declining steadily throughout the second half of the year as most large-scale tungsten mines and APT smelters returned to the market.

    The tungsten sector now finds itself facing prices not seen since early 2017. One of the primary reasons for lower prices in 2019 has been poor demand in the Chinese market, mainly as a result of lower production in the automotive and mobile phone sectors, which has affected cemented carbide tools use. Roskill estimates that a third of tungsten units were ultimately consumed in automotive applications in 2018, primarily cemented carbide or high-speed steel tools. A slowdown in China is therefore of concern to tungsten producers.

    Lower market demand has also been compounded by the ongoing trade dispute between the USA and China. In May 2019, US President Donald Trump pushed ahead with a 25% tariff rate applied to US$200Bn of Chinese exports, effective 10 May 2019, after postponing the increase originally due in January 2019 as trade talks between the two countries continued. The tariffs, an uplift from the 10% rate introduced in September 2018, affect a host of chemical, metal and finished products, including ferrotungsten and tungsten‑containing tools.

    The tungsten market is now in a position whereby prices are at levels difficult to justify investment into new mines, precisely at the time when new mines will need to start construction in order to fill the gap created by China’s strengthening environmental stance. The inspections in 2017 and 2018 resulted in the closure of small and inefficient mine operations, while some of the larger and older state-owned mines are expected to close over the next several years due to ore grade depletion. In theory, the approval of new tungsten mining rights in China is still suspended and will only be lifted under certain conditions—such as if one of the applicants is a state-owned producer, or the proposed location is considered to be an area of high poverty. Similarly, by 2020 mine quotas will cap tungsten output at 120ktpy of concentrates on a 65% WO3 basis (61.6kt contained W), effectively keeping them at 2018 levels of production.

    In the rest of the world, there are several near-term tungsten mine projects on the horizon, including W Resources at La Parrilla and Saloro at Barruecopardo, both located in Spain. Russian tungsten group Wolfram is also developing a new domestic mine project to satisfy its internal requirements. In the next wave of developers, King Island Scheelite has secured off-take for part of its planned output from the Dolphin project in Australia, while Thor Mining has appointed Argent Partners to assist with arranging offtakes and financing for the Molyhil project, located in the Northern Territory of Australia. Meanwhile, in South Korea, Almonty Industries aims to bring online its Sangdong project in 2021.

    There is a mixed outlook for tungsten in the next decade, with uncertainty around changes in some of tungsten’s key end use sectors; namely car markets, where electric vehicles have the potential to disrupt tungsten use, and in tungsten mill products for lightbulbs, which are being phased out in favour of more environmentally-friendly light emitting diode (LED) lamps. On the upside, tungsten use in high-value and high-tech applications such as aerospace and electronics is growing strongly, and manufacturing activity in general will assure a long-term future for tungsten demand.

    https://roskill.com/market-report/tungsten/
     
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  6. BigP

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    RNS Number : 7680S
    W Resources PLC
    08 November 2019






    8 November 2019


    W Resources Plc

    ("W" or the "Company")


    La Parrilla First Concentrate and Financing Update

    W Resources Plc (AIM: WRES), the tungsten, tin and gold mining company with assets in Spain and Portugal, is pleased to provide an update on progress and funding at the La Parrilla mine in Spain.

    Commissioning and ramp-up activities at La Parrilla continue to advance with all components of the Concentrator Plant from the spirals through to the shaking tables, to the flotation, magnetic and electrostatic separator plant (FME Plant) now commissioned. Over 5 tonnes of tungsten concentrate has been produced which will be purified and tin separated next week. Tungsten concentrate production for the T2 phase at La Parrilla will be underway during November. In addition, the Company has 2.5 tonnes of tin concentrate which will be built up to a 10 tonnes stock prior to shipment.

    The Company is in advanced stages of finalising finance facilities and additional equity investment from local Spanish investors and as a result, the Board considers that the Company is still in a closed period. It remains the intention of Michael Masterman, W's Chairman, as originally announced on 16 September 2019, to invest at 0.5p per share following the end of the closed period.

    The Company will notify the market in due course of further production and financing updates.
     
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  10. remmo

    remmo Demi God of BlueShare

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    I guess this is progress. However not wishing to sound negative but it basically says We’ve missed the deadline we set and we’ve not sorted the extra cash we need
     
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  11. remmo

    remmo Demi God of BlueShare

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    My guess is they will get some cash but the concession will not go down well.
    Let’s face it, why would anyone buy at .5
     
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  15. Groucho

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    15 November 2019

    W Resources Plc

    ("W" or the "Company")

    La Parrilla Ramp-Up Finance Update

    W Resources Plc (AIM:WRES), the tungsten, tin and gold mining company with assets in Spain and Portugal, has advanced a funding package of circa €2.78m. The funds will be used to advance the ramp-up of La Parrilla to design capacity and to provide working capital to supplement the Company's existing cash resources of approximately €155k. An initial amount of €1.358m of this has been secured through: an equity placement of £289k (€330k) at 0.40p, loans from Directors of £344k (€392k); and Blackrock has agreed that an additional 50% of the November interest payment, amounting to US$700k (€636k) can be added to the existing debt facility (known as paid in kind). Work is advanced but not yet concluded on the second tranche which is an additional debt facility from either existing or new bank or finance providers of a minimum of €1.0m, which are subject to credit committee and loan documentation processes.

    Until the increased or new facilities are completed, the Directors remain in a closed period and therefore cannot deal in any equity or equity linked instruments. Directors have hence provided loans as they are restricted from equity participation during the close period.

    Share Placement

    The Company has completed a placement of 72,250,000 ordinary shares of 0.1p per share ("Ordinary Shares") at a price of 0.40p per Ordinary Share to raise £289,000 (approximately €329,909) (the "Placing") before expenses.

    The funds raised from the Placing will be used to provide working capital during the ramp-up period.

    As part of the Placing, the Company has granted share options over 43,800,000 new Ordinary Shares to two Spanish Investors (the "Options"), at an exercise price of 0.40p per Ordinary Share. The Options will be exercisable at any time until their expiry date of 30 November 2020. Following the issue of the Options, there will be a total of 313,800,000 share options granted over unissued Ordinary Shares, representing 4.99% of the Company's share capital of 6,288,427,640 Ordinary Shares following the issue of the 72,250,000 new Ordinary Shares.

    Settlement and Dealings

    Application will be made for the new Ordinary Shares being issued in connection with the Placing to be admitted to trading on AIM with admission expected to occur on or around 22 November 2019.

    Total Voting Rights

    Following admission of the new Ordinary Shares, the Company's enlarged issued share capital will comprise 6,288,427,640 Ordinary Shares with voting rights. The Company has no shares held in Treasury. This figure of 6,288,427,640 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

    As announced on 16 September 2019, the Spanish investor who indicated interest to invest €2m on the same terms as the September 2019 placement has not yet secured investment funds approval and the W Board assumes this opportunity has now lapsed.

    Debt Finance Update

    W Resources has been in advanced discussions with existing and new Spanish banks and debt providers in order to increase debt funding lines by a minimum of €1m to support the ramp-up. Credit committee processes and legal documentation are advanced but there is of course no firm commitment until such processes are complete. W will update the market in due course.

    BlackRock Financial Management Inc. has agreed to continue to allow the Company to capitalise 50% of the interest amounting to US$700,174 on the US$35m loan facility due on the next payment date of 15 November 2019.

    In the meantime, in order to provide interim funding, Beronia Investments Pty Ltd ATF Duke Trust, of which Dr Byron Pirola (a director of the Company) is both a beneficiary and trustee has lent the Company a short term loan totalling £100,000, Symmall Pty Limited, of which Mr Michael Masterman (a director of the Company) is both a beneficiary and trustee, has lent the Company a short term loan totalling £200,000and Mr James Argalas (a director of the Company) has lent the Company a short term loan totalling €50,000. The loans are unsecured and carry an interest rate of 10% per annum.

    The loans by directors constitute related party transactions for the purposes of AIM Rule 13. The independent directors, having consulted with the Company's nominated adviser, Grant Thornton UK LLP, consider that the terms of the related party transactions are fair and reasonable insofar as the Company's shareholders are concerned.

    Grant Update

    With regard to the €5.3 million grant from the Junta de Extremadura, this is advancing with the normal process of documentation submission and verification. Given the pending holiday season and end of Extremadura 2019 budget year we have now been guided to expect grant proceeds in Q1 2020. The funding package outlined above is expected to provide sufficient funding until receipt of the Grant proceeds
     
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  16. remmo

    remmo Demi God of BlueShare

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    Well that’s a relief I was beginning to think that masterman was either a liar, a trickster or incompetent. Fortunately this time he’s delivered every aspect he promised in the time scale he set. Black rock and all the funders must be very impressed with his track record and I bet the financiers are falling over themselves to throw money at him. I’m just glad that this fully fundeD mine has so much gold. Disappointed though about that ‘2 million man’ .... but I’ve heard a whisper ....... he never existed. So the question is now. WTF is really going on in this bloody mess this muppet is running
     
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