GREY:NATUF - Post by User
Post by
lurkeroneon Mar 01, 2009 12:13pm
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Post# 15812056
Upgrading production for value added....
Upgrading production for value added....Keep in mind that NTC is now able to add value to a percentage of its production. Just over 8% of the MTU's produced in Q1 were not just sold as tungsten concentrate, but as APT. Watch for that number to increase going forward. The other thing I believe the Tundra JV in the US will be able to do as some point is processs tungsten scrap back into APT as well...... That would be a growth angle many haven't thought of.
This JV opens up many new markets for the end product as there were a limited number of buyers of tungsten concentrate, especially the lower grade floatation concentrate (47% Wo3) The new process that the Tundra JV is using is able to upgrade the LOW GRADE concentrate into APT. This is a big thing because it takes their lower valued production from Cantung and upgrades it to a PREMIUM product with higher value and more end markets.
Very smart move by Leahy to go in this direction. I'm sure investors have been wondering for a long time if it would ever materialize because they started working on it about 3 years ago I think..... Finally they are starting to see the benefits. Kudo's to Leahy for having the forsight to move the company in this direction.
lurk