Woulfe Mining Corp WFEMF

RE:RE:Tungsten Prices Are Crashing

[lonade]

Hi Chizzles,

I wouldnt get too worried about that since the majority of the tungsten will be sold via an offtake agreement at a discount. This will be a long term contract, which could be reassessed at certain timeframes, as specified in the contract between IMC and WOF. So we are not in desperate need to find offtakers on the market for large amount of tungsten and will be not so dependant on daily fluctuations.

Secondly, as per the released studies our production costs are still significantly lower than the current market price. Agreed, we will make less profit with the current prices, but that is expected to change in the coming years.

Thirdly, the production costs have risen globaly and even the chinese producers (no more export quota) have rising costs, so the tungsten price will bottom at a certain level where the majority of producers stop making profuts. Luckily our production costs are at a very low level and I expect them also to drop further with the new optimized mining plan (and low oil price). This is very similar to the gold price, which also has a major support at certain levels due to the same reason.

Lastly, it is expected that "our" tungsten will be processed at the very close plant of IMC. This is a major advantage from a logistic , taxation and economic point of view. I personally think this is the main and only reason why IMC is still sticking with WOF.

Those are the points that came to my mind about six months ago, while doing my DD on WOF.

If the price does of course fall in the range of our production costs, then all this would certainly have to be reassessed.

I hope this helps.....

Cheers