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A brief overview of tungsten price developments, supply and demand and significant market movers.
Tungsten APT in Europe is being reported at higher prices, in the range of $325-340/mtu as opposed to the recent $305-325/mtu range. Last week, in China there was a slight increase in prices for pure tungsten, which was reported at about $50/kg. This week prices are holding steady in China. Tungsten concentrates and tungsten APT min 88.5% are flat. However, with China observing its lunar New Year holidays this week that is of little surprise.
Given the decline in tungsten prices over the past 18 months, there is some concern about the fate of tungsten projects. APT prices were up as high as $500/mtu in the first half of 2011, which is a far cry from where they are now. Furthermore, analysts appear divided on where prices are going this year.
Also of note, the Chinese government is reportedly set to cut import tariffs on tungsten. The measure, which is expected to be temporary, aims to boost domestic demand and update the country’s industrial base, says Metal Pages.
Company News
Wolf Minerals (ASX:WLF) recently assembled a funding package worth roughly AU$212 million. With the funding the company will be able to start on the construction and development at Hemerdon, bringing the project closer to production.
Geodex Minerals (TSXV:GXM) reported the results of its 2012 exploration program on the Dungarvon tungsten-molybdenum–tin project in New Brunswick. Through the drill program, Geodex has refined its drill target areas to test for the source of multiple high grade tungsten boulder trains on the project. Initial grab samples from a two-meter diameter boulder returned 3.49% tungsten trioxide.
Earlier this month Woulfe Mining (TSXV:WOF) announced a $10 million convertible debt offering. Dundee Securities has been hired to sell on a reasonable commercial-efforts basis at a price of $1,000 per debenture with an interest rate of 10 percent payable on the last day of June and December.
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