Australian specialty metals producer Wolf Minerals has regained operational strength after a particularly bitter end to winter.
Australian specialty metals producer Wolf Minerals (ASX:WLF, LSE:WLF) has regained operational strength after a particularly bitter end to winter.
A prolonged stretch of extreme weather in March had impacted the company’s final Q1 tallies, reducing production output. However, an uptick in the tungsten and tin market prices over the last 12 months helped offset any major losses.
Over Q2, the price of tungsten jumped six percent, presently sitting at a four year high of US$347 per metric ton unit. Between April and the end of June, Wolf’s total production also grew significantly, with tungsten output increasing 41 percent and tin jumping 67 percent.
“The June quarter operating performance regained momentum following the extreme cold weather in March, with several improving trends gathering strength and culminating in record monthly throughput in June,” said Richard Lucas, Wolf’s managing director.
“The additional volumes have provided a more stable operating environment which has driven tungsten recovery and product quality improvements.”
Despite the frigid start to spring at the Hemerdon tungsten and tin project in Devon, southwest England, Wolf was able to move ahead with its Q2 goals, which included increasing ore feed volumes required for the processing plant and the embankment construction of the mining waste facility.
A subsequent pre-processing trial was successful in upgrading the ore feed to over one percent WO3, and also accelerated the operating plan.
“In addition, the successful ore pre-processing trial results have encouraged the company to accelerate an operating plan to enhance tungsten recovery and improve operating cashflows in the current strong tungsten market conditions, with the tungsten price reaching its highest level since 2014,” added Lucas.
The positive activities also contributed to a quarterly revenue boost, with Wolf reporting AU$19.8 million at the end of the period, of which AU$17 million was restricted for use on the noise and vibration management plan.
Wolf is the sole owner of the Hemerdon tungsten and tin project in Devon, which features the Drakelands open pit mine.
With a year-over-year production increase of both tungsten and tin, the company plans to move forward with targeting increased production goals.
“Following these positive results, the company is nearing agreement to obtain the funding required to support its short-term cash flows and continue its transformation in 2018,” said Lucas.
Wolf Minerals’ stock price remained flat on Wednesday (July 18), closing at AU$0.046.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.