Buckle Up... September should be a wild ride...
I came across this article... I thought I would post FYI...
In the news: (), () & ()
We are marketing Lewis Black, the President and CEO of , in London next week. We are keen to set up one-on-one meetings and conference calls for our audience overseas. Almonty is currently acquiring with a view to becoming the third largest tungsten producer in the world and the leading one outside China (China produces around 80% of the world’s tungsten). The merging of Almonty and would imply a combined market share of some 40% of the ex-China market, so this is going to be a serious player. The group will have combined operations in the stable jurisdictions of Spain, Australia and (from Woulfe) South Korea. It would have a market cap of C$66m.
Almonty’s existing assets are Los Santos and Valtreixal in Spain and the Wolfram Camp mine in Australia. The company’s flagship production hub at Los Santos in Spain has delivered strong results since Almonty assumed ownership in 2011 and turned the asset around. It has been able to increase recoveries by 40%, deliver cost savings of 25% and increase contained tungsten by about 25%. As a result, Los Santos generated revenue of US$27.6m and EBITDA of US$17.9m for the 12 months ending 31 March 2015. This allowed the company to pay a dividend last year. A similar turnaround process is underway at the Wolfram Camp mine in Australia. These two assets currently produce more than 1,800tpa of tungsten.
The announcement of an agreement between Almonty and Woulfe came on 8 July 2015. Through this Almonty will acquire all of the outstanding common shares of Woulfe in an all-share deal by way of a court-approved plan of arrangement that is expected to close in early September 2015 (subject to the satisfaction of certain conditions, etc). The latest feasibility study for Woulfe’s Sangdong Tungsten Project in South Korea was published in July 2015. It demonstrated a highly robust project with a low-case pre-tax NPV8% (at US$15,000/t) of US$130m and a payback of 1.7 years on pre-production capex of US$62.7m. Sangdong is expected to produce 4,393tpa of WO3 concentrate over a 9.5-year LOM.
This is a unique company. Please let your RFC Ambrian representative know if you would like a meeting.