W Resources (#WRES LN) 0.2p, Mkt Cap £12.4m – Quarterly production report
W Resources reports its La Parilla mine in Extremadura, Spain treated approximately 274,000t of ore to produce 3,306mtu of WO3 in concentrate and 12.1t of tin in concentrate during the quarter ending 31st March 2020.
The throughput has improved since the preceding quarter ended 31st December 2019 where the company reported treating approximately 113,000t to produce 968mtu of WO3 in concentrate and 3.9t of tin in concentrate suggesting that concentrate grades are improving, to around 56% WO3as the operation settles down.
Chairman, Michael Masterman, explained that ʺProduction at La Parrilla is building, albeit not at the pace we had anticipated due to early stage plant challenges having an impact on production levels for Q1 2020, as a result of a combination of unplanned downtime with mechanical issues with the jig and the crusher plants, which have now been resolved, and planned shut downs to implement important production improvement initiatives.ʺ
He also confirmed that ʺWe are mindful that production levels are not where we or our stakeholders expected them to be, however we are still very much in the early stages of the ramp-up and the team is well set to achieve significantly stronger results in the June quarter as a result of the improvement initiatives implemented in Q1. The increase in tungsten and tin production demonstrates progress in a very difficult external environment and we remain focussed on the works in hand and are confident of making the solid progress needed in order to reach design capacity.”
Spain has been particularly badly affected by the Covid19 virus and it is encouraging to hear that ʺNo W Resources personnel or contractors have been affected by COVID-19 and strict workplace procedures remain in placeʺ.
ʺW Resources is shipping all its Tungsten and Tin concentrate to customers but the volatility and changes in COVID-19 regulations in Spain and Europe have led to longer lead times to organise and effect deliveryʺ.
Prices for the benchmark ammonium paratungstate (APT) remain subdued at US$240-245/mtu although ʺSupply disruptions appear to have reduced Chinese exports of APT to Europe and the US providing some solid support to pricesʺ.