Another day closer to profits? Or bankruptcy?9 Mar 2021 08:07
So, here we are at a pivotal point.
On the one hand, the plant works have been completed, production is improving, recovery percentages are at their highest levels thus far, tin is at a very good price and expected to hold or improve from here, tungsten has gone up and is forecast to rise further, and blackrock are still supportive.
In the other hand, our debt is much larger than originally envisaged, the interest payments on most of that debt are high and in the long term unsustainable, we have had to borrow from atlas, and we all know that they will sell into any rise.
The question is, can we and will we produce enough tungsten and tin and then sell it at a high enough price for us to be able to cover all of our costs as they currently stand, and subsequently refinance our debt and bring it down to a manageable level, thereby eventually becoming profitable ?
The jury is out, I still believe that WRES will succeed, but time will tell.
Good luck to all holders, I suspect that we will not have long to wait to find out if we are to become profitable or bankrupt.