2019 Annual Report
2 June 2020
W Resources strategy is to build a European mining company focussed on delivering long term production of tungsten, a key strategic metal with strong market fundamentals.
With a focus on building a world class tungsten company, its flagship project, La Parrilla in Spain is one of the world’s largest tungsten mines, which commenced production in November 2019 and is funded by BlackRock.
Demand for tungsten remains high and with tight supply, W is well positioned to benefit from the continued demand and higher prices, with offtake agreements already in place on La Parrilla. Importantly, the 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.
With four projects in Spain and Portugal, W has three tungsten projects: La Parrilla in Spain, Régua and Tarouca in Portugal and the CAA/Portalegre gold/copper project in Portugal.
Production at La Parrilla commenced with the new plant in November 2019, moving to 24-hour operation in late December 2019. Tungsten and tin production will build substantially throughout 2020. The project is a large, low-cost mine which is expected to deliver significant earnings growth in 2020.
Market conditions are strong and the development is well timed to meet emerging supply shortages, particularly with the second mine now coming on stream at Régua where operations have commenced following the release of a JORC resource update. In parallel, good results from Tarouca and the fundamentals of the copper and gold projects in Portugal look increasingly compelling with the continued strengthening of commodity prices.
$WRES W Resources updates on amendment to BlackRock loan facility http://tinyurl.com/y3u2vxkq via @proactive_UK @WResourcesPlc #WRES
High grade #tungsten shipment #LaParrilla
Shaking tables running well! #LaParrilla
