Low Tungsten pricesProblem here is not lack of news:
- Bridge financing for the Sangdong mine was obtained very quickly on favorable terms
- Korean news report project is finally under way
- CEO says financing of the Sangdong mine construction and move to LSE are coming before end of the year.
These are substantial items.
Here is instead what may be keep people from buying and have sellers drive the price down:
European price for APT dropped almost 10% this past week to the $160-170/mtu range. This is free-fall drop. One may look at it as signal the bottom of the long slide down that started about two years ago may finally be here. APT cannot be produced profitably much below $150/mtu even from the lowest cost mines. Most operations need 250-300 prices to be at all viable. At these levels (150-200) Almonty may have to shut down the Australian mine and reduce other activities besides Los Santos and Sangdong until prices recover at least to the 200 level.
How long will the slump last? Last year I did not think prices could have gotten this low (I thought 200 would not be breached) but they have, so I have not been a good forecaster. I still believe this rapid drop towards the 150 level will revert quickly. Prices however may still stay low until new year (in China is Feb 8). That is usually when metal costomers start their buying for the year.