RE: First post30 Jan 2019 14:31
A rare poster myself. However, to be fair, questions that don't suggest much background research are a bit of an invitation for mockery.
Kalan posted at 13:34 with a sufficient enough rebuttle to the key points raised.
Problem 1) JORC targets production of 2500 tonnes per annum
Answer 1) JORC is not related to production, so this is clearly false.
Problem 2) Plant should have capacity of 2500, but may only produce at 1205
Answer 2) There is no public statement or record supporting this. Onus is therefore on whoever wrote that to validate the claim. Otherwise, next stage of production is 2500, with upgrade around late 2020 being towards 4000...
Problem 3) Operational stoppages
Answer 3) Site was specifically designed to minimise stoppages. Key equipment has been brought in that can produce to higher capacity, just needs limited downtown to achieve the upgrade... the plant being built is superior to the one originally proposed!
Problem 4) Bi annual placing of 1.5m
Answer 4) Placings have had diluting effect during past 5 or so years. This is standard for mining industry as companies get their JORC (remember what it means!), go through development planning and then initiative plant construction. However, we're not fully financed with a contingency of around 5million Euros, and pending an additional few million euros in grant money within around 6 months from now.
Probability of WRES needing money to develop LP is extremely low. The key question raised to MM is about how to utilise the cashflow to either repay debt, invest in other sites, or return capital to shareholders.
Problem 5) MTU price 50% below break-even
Answer 5) Read the investment report and compare forecast for tungsten price with the recent tungsten price. We're be receiving returns significantly higher than forecast, therefore only further eliminating any need to worry about above question on cashflows and dilution
I think above constitutes as a reasonable response to your question... but without meaning to be offensive. Do note my first sentence. A simple reading of the Turner Pope report, WRES Investor PPT, or any official documentation in the public domain would have easily answered all of these concerns. Asking these questions only infers lack of research, and hence leaves you open to receiving the odd joke hear or there
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