Member Info for goingunderground

Sorry I missed a direct answer to your final question. The tin is reflected as "tin credit" in Wasps numbers to arrive at the $100mtu cost (Too low)

Toungesten. No I followed the assumption that Wasp made to keep it simple. It also made the figures look more favourable in WRES's benefit. So Tin is up around 38% on the value used in the FID ($18k vs $25k) but production is missing the FID level by 60%, The net effect is not worth consideration for a fag packet calculation.

Wasp.

The cost per mtu in the FID is based upon 225t W and 100t Sn. Its actually averaged over a 6 year period and includes the step up to T3.5 but we'll ignore that, as it goes in favour. You cost is not $100mtu. it is higher. The fixed costs are the same, whether you produce 1t or 200t

You receive 80% of the Tungsten price. You will not and have not received $240 per mtu ever. Figure on currently receiving closer to $180 per mtu now, though throughout last year much less.

Lets take last quarter as an example. Production was 100t W. Loan interest is $1.8m (If it was paid) That equates to $18000 per ton. Lets then (wrongly) assume your cost base was $100 per mtu that is $10000 per ton, so even using your incorrect assumption of cost of production then you have $10000 (Production costs) + $18000 (Loan interest) A total of $28000 per ton that you are receiving $18000t in return.
On this basis every ton that is produced at this level of production is creating a loss of around $10k per ton. The reality is actually worse.

Can't believe I missed this. FID states 400t pa Sn. in current T2 stage. So that's 100t per Quarter. Rising to 500tpa in T3.5. These are the numbers that used to provide the tin credit. Oops.

"The La Parrilla Project comprises of a staged development at the La Parrilla mine with the initial
phase delivering 2,700tpa of +66% tungsten concentrate and over 400tpa of final tin concentrate at
>52% Sn. Expansion in 2020 ramps production up to 4,000tpa of tungsten concentrate and over
500tpa tin concentrate."

Last quarter Q4 2020 Tin production was 33.4t but at a slightly higher grade of 56%. So only around 33% of FID.

Thanks for the advice Troajan, but I'll ignore it. I like to stick with the official RNS information, then read the unwritten nuances between the lines. I'll even ignore Masterman blurting out that they only produced 40t in Jan and Feb in his recent interview, just for balance.

Bit nippy out this morning, off in the garden.

Troajan. Lets see realities rather than whats, ifs and maybes. Every quarter there is a reason presented as to why things have not worked out. I still don't see a route to 225t W. I'm sorry you find reference to the FID makes you yawn, but its now 3 years behind. It should be moving into T3.5 this year (allowing for delays) now producing 330t W per month.
A little snippet from the FID "2 million tonnes per annum (Mtpa) initial Run of Mine (ROM) rate producing 2,700 tonnes
per annum (tpa) of concentrate increasing to 3.5Mtpa ROM in 2020 targeting production in
excess of 4,000tpa of concentrate at 66% WO3"

All is not well.

Dreamy. I accept that. Masterman indicated that there might be maybe 100t of W that may come out this Quarter. Lets be extreme and say 120t W, That is over a quarter, not a month.
Yet here we have people taking about 120t W a month. a 4 fold increase over the current 5 day working run rate. Even that would not be sufficient. FID based on 225t W a month.
It's unrealistic. Posters are setting expectations that will not be met, only to then be disappointed again.
I know you are heavy in this Dreamingof but it is what it is. The production may be increasing but not nearly close to enough.

What is the fascination with 100t or 120t a month. The FID requirement was 225t + Tin per month and with half the debt they currently have.
You are all missing the point. 100t a month does not keep the fire burning and Its already 3 years late.

I get where you are coming from. The honest answer is I don't know. My instinct is probably not, they would still be issuing shares with a nominal value deficit

Tounguesten. Atlas won't advance further funds under a CLN as the shares are below par value. The CLN can not be converted

Troajan. They are not producing 120t/month. They are not even producing 120t in a 3 month period. So you can take a third of the numbers you used.
$9m then . Revenue.
$55m owed to Blackrock @12% = $6.6m pa Interest. That's without repaying capital and ignoring the other loans they have.
The coffers are bare

This is very interesting and a perfect delivery.

https://tinyurl.com/5w4a9yx3

Getinthere "Most importantly if we are now, as I suspect, able to produce 20 tons of tungsten and maybe 4 tons of tin a week on 5 day working, it bodes very well for the future."

20t per week on 5 days equates to 4t per day.
Take best case that it runs 7 days a week for a month of 30 days. (30 x 4t) That is 120t per month.
That will not cover OPEX and debt servicing.
The FID was calculated on 225t per month.

What part of that "bodes well for the future" unless you consider failure a success ?

The sp hasn't made the grade, back to evens after such "spectacular" news.

Tin, a by-product of production at WRES whose Income used to provide a "Tin credit" in lowering the Production cost of Tungsten.

Tin has risen $586 per ton that's a rise of 2.39% to $25091.

Source: https://markets.businessinsider.com/commodities/tin-price

Yes, it is still double what it was 12 months ago, but more critical it is still above the $18000 per ton than was used in the FID. For almost all of last year the tin would have been sold well below the FID price . That coupled with the continuing price gap on Tungsten between FID and reality was not a good thing. In some ways it was probably useful that production last year was so poor. The tungsten price has picked up but is still a day late and multi-dollars short.
"Juicy" RNS? I cannot see a positive one, forget about Gold and the grant money arriving is a neutral event as its in one hand and out the other to chip away at debt which was secured on it

Tin, a by-product of production at WRES whose Income used to provide a "Tin credit" in lowering the Production cost of Tungsten.

Tin has fallen a further $2995 per ton that's a fall of 10.89% to $24505 . Its gone down faster than it went up. That is now a reduction more than $5000 per ton since Friday.

Source: https://markets.businessinsider.com/commodities/tin-price

Thank you for posting all of your generalisations. I prefer to use the content of company RNS's for specific information. Generalisations are rather trump like.

The plant has had barely any impact from Covid Troajan. It's shameful to say otherwise, It's all in the RNS's bud

From Q4 Update RNS Issued 21st January
"There were zero minor lost time injuries at La Parrilla during the quarter, however, there was one Covid-19 infection during the period. The case was detected while the worker was off duty and they remained in quarantine at home and none of W's other employees contracted the infection from their colleague.
· The Company has acquired quick Covid-19 antigen tests to improve detection and control of the disease with the aim of keeping all employees and contractors safe whilst in the La Parrilla work place."

And from the Q3 RNS Update issued 21st October
"The challenges and threat of COVID-19 remains in Spain as it does in so many parts of the world. With stringent processes in place, no cases of COVID-19 have been reported by employees or contractors in Q3. We would once again like to thank and acknowledge the hard-work and dedication of all our employees during the pandemic for their continued diligence and adherence to governmental and self-imposed preventive rules."

And from the Q2 Update issued 23rd July
"The Spanish State of Emergency shut down operations in April. The mine and main plant reopened in May under the continuing COVID-19 protocol and in the face of supply change logistics challenges that the Spanish industry has faced.

COVID-19 - Spanish State of Emergency
· The spread of COVID-19 has been controlled in Spain during the quarter and no cases of COVID-19 have been reported by employees or contractors. There has been a gradual return to normal working conditions with appropriate prevention and controls."

So in summary, April was affected, but in the Q1 production update that was issued on 17th April, it was noted:
"In early April following clarification from the mining authorities, W has, with a limited workforce, focused on processing existing tungsten and tin intermediate product to produce shipment tonnages and revenue. In addition, the team has proceeded to install cyclones on the spirals to enable greater density control and increase concentrator plant recoveries."

So even that time was used constructively

The plant has had barely any impact from Covid Troajan. It's shameful to say otherwise, It's all in the RNS's bud

From Q4 Update RNS Issued 21st January
"There were zero minor lost time injuries at La Parrilla during the quarter, however, there was one Covid-19 infection during the period. The case was detected while the worker was off duty and they remained in quarantine at home and none of W's other employees contracted the infection from their colleague.
· The Company has acquired quick Covid-19 antigen tests to improve detection and control of the disease with the aim of keeping all employees and contractors safe whilst in the La Parrilla work place."

And from the Q3 RNS Update issued 21st October
"The challenges and threat of COVID-19 remains in Spain as it does in so many parts of the world. With stringent processes in place, no cases of COVID-19 have been reported by employees or contractors in Q3. We would once again like to thank and acknowledge the hard-work and dedication of all our employees during the pandemic for their continued diligence and adherence to governmental and self-imposed preventive rules."

And from the Q2 Update issued 23rd July
"The Spanish State of Emergency shut down operations in April. The mine and main plant reopened in May under the continuing COVID-19 protocol and in the face of supply change logistics challenges that the Spanish industry has faced.

COVID-19 - Spanish State of Emergency
· The spread of COVID-19 has been controlled in Spain during the quarter and no cases of COVID-19 have been reported by employees or contractors. There has been a gradual return to normal working conditions with appropriate prevention and controls."

So in summary, April was affected, but in the Q1 production update that was issued on 17th April, it was noted:
"In early April following clarification from the mining authorities, W has, with a limited workforce, focused on processing existing tungsten and tin intermediate product to produce shipment tonnages and revenue. In addition, the team has proceeded to install cyclones on the spirals to enable greater density control and increase concentrator plant recoveries."

So even that time was used constructively

Tin, a by-product of production at WRES whose Income used to provide a "Tin credit" in lowering the Production cost of Tungsten.

Tin has fallen over 6% to $27500 per ton over the weekend. A fall of almost 7%

Source: https://markets.businessinsider.com/commodities/tin-price