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Chinese Environmental Protection Tightens the Supply of Tungsten Concentrate
Published on Friday, 03 January 2020 18:06
Analysis of latest tungsten market from Chinatungsten Online

In the first trading day of the year of 2020, the tungsten prices in China still keep stable in wake of strong rised mentality of sellers but rare transactions concluded.

More and more raw material manufacturers slow down their production and downstream industries also will not active to consume in the short term with the approaching of Chinese Spring Festival. Under Chinese environmental protection, mining control, cost promotion, and complex macroeconomic and trade environment, industry insiders generally believed that although the tungsten market has bullish expectations in the long term, the short-term outlook is not clear. At present, the market is quiet on the whole.

How do production credits reduce the capex?
If anything it will increase the capex due to the extra processing that may be required.

Can't see any reason for being in a closed period.
It was MM's intention to contribute to the cash raise but this is not needed now. It would be much better if he now bought on the open market to avoid dilution.

Up again to $3.24 dmtu.
https://www.jupitermines.com/projects/tshipi/manganese-price-information

FID

The planned number of operating hours is 7,581 per year which is an average of 6 days per week. That leaves 52 days for holiday shutdowns, planned and unplanned maintainance.
That should leave some scope for 7 days a week working, but a 6 day week is the planned average over the year.

Ahh dreamy, I knew someone would want one of my lists.
Despite what some would have you believe, a huge amount of progress has been made this year, albeit at a slower rate than we would have liked. Milestones have been met and boxes ticked and we now have a low cost, state of the art mining operation targetting a continuous operation running 24 hours a day, 6 days a week, producing 200 tonnes per month.
Knowing how you lot all love a list, this is the potential newsflow that we can look forward to in 2020. Let me know if I've missed anything.

Q1 - La Parrilla production update
Q1 - Audit for compliance of E5.3m grant conditions
Q1 - Regua development plan
Q1 - E5.3m euro grant paid
Q1 - Regua capex finance announced - no raise required
Q1 - Transfer of old concentrator to Regua
H1 - Tarouca exploration licence renewal
H1 - Regua JORC update
H1 - La Parrilla Q1 production and sales update
H1 - Regua FID
H1 - Refinancing of the BlackRock debt
H1 - Regua ore mining contract
H1 - Regua concentrator commissioned
H1 - Mining at Regua starts
H1 - WRES announces cash flow positive
H1 - La Parrilla 200 tonnes per month production achieved
H1 - Initial sales of tourmaline announced
H1 - Regua production starts with first ore into concentrator
H2 - EIA approval for T3.5
H2 - Sao Martinho trial mine licence granted
H2 - Limited drilling on Sao Martinho to define geology
H2 - Gold JORC update
H2 - Sao Martinho joint venture
H2 - La Parrilla and Regua combined production hits 4,000 tonnes per annum run rate

Safety - LME don't quote a price for APT as far as I know, although I seem to recall that they were considering it. The prices that get quoted in the various online news feeds are the result of feedback from industry insiders who have sight of completed contracts and are a guide, not a spot price.

GLOBAL TUNGSTEN SNAPSHOT: Tight concentrate supply in China supports higher APT prices
Key data from the pricing sessions in London and Shanghai in the week ended Friday December 20.

China
Key drivers

China’s ammonium paratungstate (APT) export price rose by 2.2% last week, supported by the firm tungsten concentrate price. Spot liquidity was thin despite increased inquiries while overseas customers were busy with year-end reviews and preparing for the upcoming Christmas holidays. The tungsten concentrate price in China held over the past week. Some market sources predicted the price had the potential to edge up since some downstream refineries will need to replenish stocks.

Ok, thanks. I didn't know that.
I'm guessing, but it's likely that our US customer pays a bit more than Wolfram seeing as the USA doesn't have much of a domestic tungsten mining industry.

The concentrate that we sell to Wolfram, Austria is collected by them from La Parrilla. It's likely that the concentrate that we sell to our customer in the USA will be our responsibility until the ship either departs from Spain or docks in the states.

We get 80% of the current APT price of $240 = $192.
100 mtu = $19,200 per bag

Agree GIT. The intended 0.5p investment by MM was to help provide working capital.
That's no longer needed.
Would be good to see him buy on the open market.

The board of wres have an excellent share buying history.

Michael Masterman
June 2012 £50k
Jan 2013 £100k
July 2013 £50k
May 2014 £180k
Nov 2014 £8k
Jan 2015 £152k
June 2015 £140k
Nov 2015 £75k
Mar 2016 £75k
Aug 2016 £100k
Nov 2016 £100k
Mar 2017 £150k
Jun 2017 £50k
Oct 2017 £100k
July 2018 £24k
Aug 2019 £41k

and Byron Pirolas' share buying history
May 2009 £160k
Dec 2011 £100k
June 2012 £100k
Nov 2012 £50k
July 2013 £50k
Dec 2013 £50k
July 2014 £100k
Dec 2014 £10k
Jan 2015 £50k
Mar 2015 £50k
June 2015 £160k
Aug 2016 £100k
June 2017 £50k

That's a runrate of 4,000 tpa by year end before anyone has a go, lol.

I agree GIT.
MM would have needed to publish an updated JORC and FID in order to do a placing to fund Regua development.
BlackRock have seen enough evidence to give the go-ahead.
That's now a potential 4,000 tonnes per annum total production before the end of 2020.

GIT - I'm aware of that. I'm just wondering what they want to spend $2.5m on so quickly when we haven't had the Regua updated JORC or the FID yet. I'm expecting an RNS to inform us of the development plan quite soon given the funding is now in place.

I think it was on the P r o a c t i v e interview where he said that only half of the $5m was required for working capital.
So I wonder why they've drawn down the whole lot immediately.

NMH - we were told in the last RNS that the $5m would be fully drawn last week.
I doubt we'll get another RNS to confirm.
I'm hoping to see an RNS soon for the Regua development plan.

HaleSpur - the planned Bushveld Energy electrolyte plant can only convert 1,000 tonnes of vanadium into electrolyte per year as I understand it.