March cash deadline looms as Devon mine’s financial hole gets bigger
Devon mining company Tungsten West has warned it could run out of money in March after a difficult year in which the hole the company was digging kept getting bigger.
Tungsten West is focused on restarting commercial operations at the Hemerdon tungsten and tin mine.
But it has reported a half-year loss of £9.1m while three rounds of job cuts have left the business operating with just 15 staff. They are focused only on environmental and corporate compliance, permitting and funding activities.
The stock market-listed company’s closing share price last night values the business at just £2.6m after a 90% fall this year.
Its precarious position in the short and long-term was made clear again to shareholders this morning.
In a statement, the company said that if it fails to find purchasers for its latest set of loan notes or other sales, then it expects it would run out of money in March.
“There remains material uncertainty regarding further funding, the sale of certain assets and the value of onsite aggregate sales which would have an impact on the group’s ability to continue as a going concern,” it said.
Tungsten West also warned “there are many risks that could impact the company’s ability to reach construction through to commercial production”.
However Neil Gawthorpe, who has been chief executive of Tungsten West since March, sought to focus on the positives.
He said: “This period has seen some challenges for the company as we continue to navigate difficult market conditions. However, there have been many positives to take from the last six months and progress has been made at Hemerdon.”
Gawthorpe highlighted the formal submission of the Mineral Processing Facility permit, the approval of its Section 73 application, and the production of tin and tungsten from legacy material as signs of progress.
He added: “Tungsten and tin remain critical minerals and are essential to everyday living, as well as being crucial in future green and emerging technologies. Tungsten West aims to help provide a secure supply chain of these critical minerals.”
