As a UK investor I pay attention to the comments on this forum because I hold the view that Australian investors are likely to be more knowledgeable on the subject of mining than we in the UK.
At the moment there are two issues. First is the APT price which has been cited by the Company as the reason for seeking additional funds. The current APT price in Europe is (to the best of my knowledge) around US$200/MTU which after the discount would put the price 10 below the breakeven figure of 170 quoted by Wolf in all their presentations. My personal view is that the APT price will continue to improve in line with increased demand for carbide cutting tools used in the mining and oil industries.
The second issue is progress with ramp up which appears to be rather slow. I have read the comments posted here following the Q2 report and they mirror my own concerns. Regardless of the APT price the Company will never be profitable if it cannot achieve the design production rate, or at least something approaching it. Russell Clark has said that they expect to reach the design production rate this summer but given the progress so far this seems rather optimistic. Furthermore; is it conceivable that the plant design is flawed such that it is incapable of achieving the design production rate?
I welcome any comments on this subject.
The Sustainable Earth Institute of Plymouth University recently hosted a lecture titled "Tungsten mining at Plymouth Drakelands - an evening with Wolf Minerals" which has been put up on Youtube and is well worth watching
https://www.youtube.com/watch?v=gxl8zrKBwxU
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