W Resources PLC- tungsten, tin and gold mining and exploring in Spain and Portugal - Reports tough performance in the fourth quarter of 2021, with heavy rains in December leading to production stoppages at La Parilla tungsten and tin mine in Spain, due to wet crushed ore blocking the silo.
In addition, the company suffered from only having access to low-to-mid grade ore, maintenance issues and supply chain bottlenecks for replacement parts. As a result, W Resources has reduced its annual guidance for 2021 to 520 tonnes of concentrate, compared to a range of 650 and 750 tonnes.
In addition, the company is looking to raise GBP830,000 through a placing of 13.9 million shares at 6.0 pence per share, with offtake partner ICD Alloys & Metals LLC and Symmall Pty Ltd.
"A number of challenges encountered towards the end of 2021 have resulted in a much lower performance than we had envisaged. Once again the management team at La Parrilla have overcome these challenges and as we start to mine and process higher-grade ore we are seeing increased levels of production, higher recovery rates and increasing utilisation rates," said Chair Michael Masterman.
Current stock price: 4.30 pence, down 9.4% on Wednesday
12-month change: down 66%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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