Banter and General Comments, page-50

A couple of observations from the above post.

1. Project coming together. This should see higher production at a time when the tungsten price is rising. 60-90 tonnes per month in the next few months.
2. A new revenue source - fines (used instead of sand). Not sure how much but it all helps.
3. Other projects getting into trouble as cost start rising and higher capex debt becomes more expensive.
a) W Resources (Spain) -halted production due to rising costs. Shortage of key spare parts, Natural Gas up 700% from last year - ouch. They also have $US40m of debt.
b) Tungsten West (UK) - has delayed the re-opening due to increased cost pressures in power, steel, cement, explosives and diesel. Debt 35m pound
4. Russia produces 2,100 ton in 2019. This is unlikely to be exported.
5. Chinese lockdowns are likely to impact production.
6. Military usage is approx 8% of tungsten. This is likely to increase as stockpiles of precision weapons are being drawn down and $$ spending is increasing.
7. US passed legislation earlier in the year banning tungsten from China in military usage. Not sure where they will get product from. Won't be Russia or the European projects (above).

Given all of the above, it's easy to see tungsten price higher (maybe not at $800 mtu as one industry players said. We will wait and see.