What does W Resources do?
Masterman has been involved with several resources companies over the years and has plenty of experience in bringing projects all the way from early stage exploration towards and into the production stage. W Resources is focussed primarily on tungsten, tin and gold.
What does W Resources own?
The company owns several exploration and development assets in Spain and Portugal, most notably the La Parrilla project, which produced its first tin and tungsten late last year.
It said in November tungsten and tin production had kicked off at the mine, with the plant currently running on day shifts and planning to move to 24-hour operation in December, when the miner has scheduled its first shipments.
The new concentrator has been completed and is producing tungsten grades to “shipment criteria levels”, which are expected to improve as the plant reaches steady-state production.
It also completed its largest blast to date of 90,000 tonnes of ore and rock in November, as mining and crushing processes gather pace.
The wider La Parrilla ramp-up process continues towards a target of processing 200 tonnes per month by the end of the year.
In October, the company said the first upgraded jigged ore has been fed to the new concentrator plant following “extensive programme” of commissioning and installing automated systems at the site, with commissioning processes also underway for spiral and shaking table plants, a concentrator thickener and floatation, magnetic and electrostatic separators.”
Meanwhile, at Régua in Portugal, development work continues to progress well. Infill drilling of the mine entry portals is now complete and database completion is underway for a review of the resource.
Road construction, mining contractor and contract crushing contract negotiation is advanced and is expected to be finalised in the third quarter of 2019.
And at the São Martinho gold deposit in Portugal, SRK Consulting is progressing well with the updated gold resource estimate, which is expected to be finalised in the second quarter of 2019. W Resources has applied for a trial mine licence in order to commence initial mining and production and this will be progressed through the Portuguese regulatory programme.
Broker expects significant revenues this year
Broker Northland forecasts that the La Parilla project will generate revenues of around £29mln this year, following the completion of the ramp-up process.
That will translate into profits before tax of £7.6mln and earnings per share of 0.1p.
At the end of the year, Northland forecasts that the company will be carrying a debt of around £15mln. The broker sets a price target of 1.2p
Interview - Chairman Michael Masterman
With the shares trading at 0.38p as of 21 October, W Resources carries a market cap of £23.6mln.