Investor QueryInvestor: It is clear Malaga is the only tungsten company reporting a positive cash flow in the last twelve months, but are the other companies that are in exploration and development going to give Malaga a run for their money in the near future?
Malaga: The other companies with an interest in producing tungsten are in the exploration stages. In the very least, they are 4-5 years away before production stage. Feasibility studies, mining permits, environmental impact assessments, mine construction financing and many millions of dollars is what is necessary to get to where Malaga is today.
Investor: Is it not a touch worrisome that there are few companies operating in the tungsten business today?
Malaga: The tungsten market in the East is substantial. China has long held the position as the world's leading nation of tungsten production. The other principal tungsten producing nations are Austria, Bolivia, Canada, Peru, Portugal, Russia and Thailand. Some mines in the US and Australia that have closed in the last few decades are considering to re-open; however, as mentioned above, this will take time and many millions.
Investor: Is it a tough business with limited demand?
Malaga: As the world continues to grow, a steady increase in industrialization along with a broadening of the applications of tungsten and its products is par the course as tungsten consumption is closely related to industrial processes. Manufacturing industries alone consume over 60% of tungsten to develop cemented carbides, tools, drill bits, gas/oil, mining and construction industry. Because tungsten is the world's exceptional hard metal, next to diamond, it is irreplaceable in these applications. Lest not forget unless the world decides to revert back to candle light, tungsten is used for our traditional incandescent light bulbs and the new energy saver lamps.