Vox Markets Logo

W Resources said momentum continues at La Parrilla in 4Q20

09:20, 26th November 2020
Francesca Morgan
RNS Newswire
TwitterFacebookLinkedIn

W Resources (AIM:WRES FOLLOW) highlighted to investors that momentum at its La Parrilla tungsten and tin project in Spain has continued into 4Q20 after improving substantially during 3Q20.

The tungsten, tin and gold mining group which holds assets in Spain and Portugal said that ongoing plant improvements have seen overall recoveries consolidate during the quarter to date, with detailed results to be announced in the Q4 production update in January 2021.

Last month, the company identified a number of plant improvements which were successfully addressed to increase plant efficiencies which led to a notable improvement in recoveries.

As a result, 3Q20 saw record tungsten concentrate production of 2,163mtu and a significant increase in grade from 805 parts per million (ppm) in August to 1,059ppm in September.

W also recorded the highest tungsten metal production and recovery achieved to date with concentrate amounting to 54.7 tonnes in 3Q20, up 168% pro-rata and up 15% like-for-like.

Since moving to a four-day working week on 4 November, W has reported record concentrator recovery rates this month of 40% tungsten trioxide (WO3) and 53% tin (Sn). Tungsten and tin concentrate production to date exceeds total Q3 production of 77.6t.

Mine grade has consistently exceeded 1,050ppm WO3 and 350ppm Sn, figure ‘significantly greater’ than the preceding three quarters while plant utilisation remains above 90%, which the group noted was encouraging alongside its recent move to a four-day working week.

Three 20t shipments of tungsten concentrate are now completed to date, with further shipments planned. As recoveries and production improves, W said that plans are in place to move to a five-day working week, with minimal closure over the Christmas period.

“These significant plant improvements together with accessing higher grade portions of the ore body are enabling us to build production rates each month as we work to increase concentrate production,” said Pablo Neira, MD of Iberian Resources Spain and La Parrilla.

He added, “Noting the challenges of the past year, W is providing this interim project update as a one-off update in order to keep investors appraised of the positive progress and developments at the La Parrilla project.”

Shares in W Resources have traded within a tight range between 0.11p and 0.13p in the past month to open 2.04% higher this morning at 0.12p following the announcement.

WRES price chart

3 Reasons to Follow W Resources

Exclusive Focus on Tungsten, a Key Strategic Metal

W Resources’ strategy is a European mining company focused on delivering long term production of Tungsten, a key strategic metal with ‘strong market fundamentals.’

The company said predicted supply shortages are expected to result in upwards trending prices with market forecasts of between US$445/mtu and US$530/mtu by 2023.

World Class Tungsten Projects

W Resources has three tungsten projects: La Parrilla in Spain, Régua and Tarouca in Portugal and the CAA Portalegre gold/copper project in Portugal.

Its flagship project, La Parrilla, is one of the world’s largest tungsten mines, which commenced production in November 2019 and is funded by BlackRock. The project is a large, low-cost mine which is expected to deliver significant earnings growth in 2020.

With tungsten demand high and with tight supply, W said it is well positioned to benefit from this demand and higher prices, with offtake agreements already in place on La Parrilla. 

Improving Production Metrics

Last month, W Resources said it was “extremely encouraged” by the September performance at its La Parrilla mine in Spain after the plant improved substantially in 3Q20.

W Resources also recorded the highest tungsten metal production and recovery achieved to date with concentrate amounting to 54.7 tonnes in 3Q20, up 168% pro-rata and up 15% like-for-like.

W said improvements in production as well as the stability achieved at the plant which ‘improved substantially in September 2020 has allowed the Company to pay dividends.

"Noting the plant improvements achieved in Q3, we are extremely encouraged by the September performance, which is a strong indicator for plant performance and production in Q4.” said Michael Masterman, Chairman of W Resources.

Follow News & Updates from W Resources here: FOLLOW
 

TwitterFacebookLinkedIn

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

Recent Articles
Watchlist