1st Jun 2020 11:51
(Alliance News) - W Resources PLC on Monday said that tungsten prices have been hit by the Covid-19 pandemic, after posting a narrowed full-year loss.
For 2019, the tin and tungsten miner reported a pretax loss of EUR2.9 million, slimmed from EUR4.6 million. Revenue was 67% higher at EUR365,000 from EUR219,000.
W Resources during the year completed the construction of its "world class" La Parrilla tungsten and tin project in Spain. Construction was completed back in September and at full capacity, it is expected to produce 2,500 tonnes per year of tungsten.
W Resources added: "Production 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 the first quarter of 2020 and the restrictive conditions during the Covid-19 state of emergency which have necessitated mine and plant closure and operations limitation on equipment sourcing and day-to-day safe personal management which is, of course, our main priority.
"Tungsten and tin demand and supply has been disrupted by the Covid-19 crisis".
The company explained tungsten prices "have been relatively solid", at around USD215 to USD225, though this is down 22% on the company's budget expectations.
"There have been substantial shutdowns of capacity in China, the world's largest producer of tungsten and as the world economy comes out of the various lockdowns we do expect continued price volatility and a boost in global demand although it is too early to judge the supply/demand balance for the rest of 2020".
Shares in the company were down 7.2% at 0.15 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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