RE: Tungsten up again......9 Mar 2026 07:11
Baker steel rns this morning
Tungsten West Plc ("Tungsten West")
During February 2026, Tungsten West completed an equity raising of £43 million at a price of 18 pence per share, forming the equity portion of the US$93 million required to restart the Hemerdon open pit tungsten mine in Devon. The debt portion of up to US$75 million is expected to be finalised in the next few weeks. This will enable production to restart in the second half of this year with full production in 2027.
At current tungsten prices, Tungsten West could make well in excess of £200 million in EBITDA per annum once in full production, with an NPV(7.5%) of £1.3 billion.
The Company acquired a further 9.4 million shares of Tungsten West in the placing and accompanying secondary sales at an average of 18.4p per share and now owns 7.8% of the issued shares. During February 2026 the shares in Tungsten West rose 69% and have risen 192% since the beginning of the year. Notwithstanding this rise, its market capitalisation of some £480 million does not look challenging when compared to its potential cashflow generation or its closest comparable Almonty Industries which owns the Sandong underground mine in South Korea with a similar size resource and production profile to Hemerdon. Almonty Industries is Nasdaq listed and has a market capitalisation of close to £4 billion.