Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Mining and exploration company W Resources lowered its annual tungsten and tin concentrate production guidance but said production in Q1 2022 would 'improved significantly.'
Following heavy rains in December that led to production stoppages, the company cut its full year guidance to 520 tonnes of tungsten and tin concentrate compared to previous full year production guidance of between 650 tonnes and 750 tonnes of concentrate.
Were it not for these challenges, the company said it believed 'production would have been very close to the lower end of the previous production guidance issued.'
Looking ahead to Q1 2022, the company touted improved production, supported by the open mine pit, which has been drained of water, giving access to higher-grade ore bodies, while the crushed ore stockpile area was expected to be finalised by the end of January 2022.
The company said the challenges encountered in Q4 2021 led to unexpected pressure on cash flow, but it received support from offtake partner ICD with an investment of £778,227 in addition to a further £55,106 investment by Symmall, which has subscribed for 918,434 ordinary Shares on the same terms as ICD.
The Placing was at a 26.3% premium to the company's share price as at 31 December 2021.