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 is under development and 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 five projects in Spain and Portugal, W has three tungsten projects: La Parrilla in Spain, Régua and Tarouca in Portugal; the CAA/Portalegre gold/copper project and Monforte-Tinoca copper project in Portugal.
La Parrilla is fully funded and development work is on track towards project completion with the ramp-up to large scale production expected from Q3 2019. The project is a large, low cost mine which is expected to deliver significant earnings growth in 2019.
Market conditions are strong and the development is well timed to meet emerging supply shortages. In parallel Régua development is advancing, we have 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.