North American Tungsten Corporation Ltd NATUF

Increased Mill Capacity in 2014

[StockExpertPro]

Management failed to mention that higher production levels contributes to the glut of tungsten APT currently on the market and brings down prices overall. In my opinion they're really not saving any money by doing this. The company should have shut down all operations and remained on idle until this upcoming tungsten deficit gained some traction around 2016. Instead all of these junior mining projects are blindly rushing in to pump out at much tungsten APT as possible. The mining industry never learns. Mass production = no profits. A lot of these upcoming tungsten mining companies may not survive. If it comes to survival of the fittest then companies like Woulfe Mining - V.WOF - will easily drive the competition from the tungsten market due to their low costs from being located in South Korea. Ned Goodman and the board of directors seem to be carefully timing Woulfe's big entry into full-scale production in order to ensure that the company is highly successful. Working together, we recognized we could increase mill capacity and had sufficient ore resources to support throughout increases. Higher production levels leverage our fixed operating costs and reduce our cost per ton mined, milled and sold." The mill enhancement project which began in 2013 and is to be completed mid-year 2014 enables throughput expansion of up to 20% while maintaining, and potentially improving, recovery levels and enhancing flotation circuit productivity. Based on current resources, we expect Cantung to be in operation for years to come. Additionally, the Company has successfully advanced the MacTung project in the regulatory permitting process. While the mill improvements involve some further capital expenditures in 2014, the increase in production should substantially reduce the cost per unit produced, along with the supplement of low cost open-pit tons to the mill feed, will significantly improve operating cash flows. As 2014 progresses, the Company expects to realize the benefits of the increased production. Read more at https://www.stockhouse.com/companies/bullboard/v.ntc/north-american-tungsten-corporation-ltd#IOu3tCSCOYZl0HoB.99