W Resources PLC set to become major European tungsten producer from Spain and Portugal projects
W Resources is about to make a name for itself as a serious European-based supplier of tungsten
- First tin and tungsten produced late in 2018
- Plant construction and installation nearing completion
- Significant revenues and profits expected this year
- Other development assets progressing
What does W Resources do?
W Resources PLC is a long-standing constituent of London’s AIM market, run by mining entrepreneur Michael Masterman. Masterman has been involved with several resources companies over the years and has plenty of experience in bringing projects all the way from early stage exploration towards and into the production stage. W Resources is focussed primarily on tungsten, tin and gold.
What does W Resources own?
The company owns several exploration and development assets in Spain and Portugal, most notably the La Parrilla project, which produced its first tin and tungsten late last year.
The fully automated 350 tonnes per hour crushing circuit is already operational. It can be run with one operator and has run smoothly at full capacity.
Work on the plant and wider infrastructure are also nearing completion, as the ramp-up process continues.
Iberdrola, the Spanish utility company, is on schedule to upgrade the grid power supply to 1.5MW in the second quarter of this year.
Meanwhile, at Régua in Portugal, development work continues to progress well. Infill drilling of the mine entry portals is now complete and database completion is underway for a review of the resource.
Road construction, mining contractor and contract crushing contract negotiation is advanced and is expected to be finalised in the third quarter of 2019.
And at the São Martinho gold deposit in Portugal, SRK Consulting is progressing well with the updated gold resource estimate, which is expected to be finalised in the second quarter of 2019. W Resources has applied for a trial mine licence in order to commence initial mining and production and this will be progressed through the Portuguese regulatory programme.
Broker Northland expecting significant revenues this year
Broker Northland forecasts that the La Parilla project will generate revenues of around £29mln this year, following the completion of the ramp-up process. That will translate into profits before tax of £7.6mln and earnings per share of 0.1p. At the end of the year, Northland forecasts that the company will be carrying a debt of around £15mln. The broker sets a price target of 1.2p
Chairman Michael Masterman upbeat about progress
“It has been an intense first quarter at La Parrilla with plant and infrastructure construction completion and production ramp-up running at a fast pace,” said Michael Masterman, chairman of W Resources.
“Completion and commissioning of the jig in April will give us the operational capability to expand tungsten and tin production as part of the second stage of plant ramp-up.”
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