Tungsten West plc said its recorded losses of nearly £5 million was in line with expectations for the current stage of the tin-tungsten project at Hemerdon Mine in Devon.
FINANCES
In its half-year results for the six months ended 30 September 2021, the company’s losses were £4,990,226 (2020: £3,631,500) with administrative expenses of £1,763,573 (2020: £629,409).
The group raised £39m and agreed the terms for a royalty and senior loan facility with Orion for a further £36m in project financing.
The company was also admitted to the AIM of the London Stock Exchange.
WORKFORCE
As at 30 September 2021, the group employed 47 staff (30 September 2020: 25).
Tungsten West said it had been been “scaling up” its workforce in readiness to rebuild the plant and start operations.
It has also recruited construction and engineering sector specialists, including some with previous experience of Hemerdon.
The board was strengthened with the appointment of Nigel Widdowson, Grace Stevens and David Cather.
AGGREGATES OPERATIONS
Tungsten West has, through its subsidiary Aggregates West Ltd, started sales of aggregates from stockpiles, and signed a distribution agreement with GRS Roadstone.
The company said it had been shipping aggregates since January 2021 and generated £133,016 revenue.
MINE PROGRESS
The company has completed Front End Engineering Design (FEED) and started the design and build phase.
The mining services contract is with Hargreaves Services plc which has significant experience of the project and will act as specialist crushing subcontractors for the next ten years of operations.
TIN-TUNGSTEN OFFTAKES
Tungsten West entered into offtake agreements with Wolfram Bergbau und Hutten AG (Austria) and Global Tungsten and Powders Corp (USA) for purchasing a minimum of 78% of forecast tungsten production.
The company entered an offtake agreement with trader AfriMet Resources to purchase the tin concentrate.
During the six months to the end of September, Tungsten West sold LIMS waste product (low grade tungsten concentrate) left on site by the former operator, generating £67,870 revenue.
PRICE INFLATION
Chief executive Max Denning added that as the project progressed towards placing orders the company was experiencing some price inflation for materials components.
“Management is actively monitoring pricing and availability of materials, equipment and labour and will make adjustments to planned developments if material price increases are experienced or supply constraints lead to project delays.”