Almonty Industries (AII.TO) has now received the ore sorting equipment at the Panasqueira mine in Portugal, after the Portuguese customs released it. The equipment is currently being installed, and once the installation has been completed and commissioned, Almonty expects to see a 10% bump in the mine’s tungsten output. The mine produced approximately 80,000 mtu of tungsten per year, and the additional 8,000 mtu would generate approximately US$2M in additional revenue based on an APT price of $350/mtu.
But what’s perhaps even more interesting than the near-term production hike at Panasqueira, is the final sentence of the company’s update:
The days of cheap tungsten are long gone and we’ve entered new territory now. Improved market conditions are being realized in the results for the business and we look forward to sharing our results with the financial community in August 2018.
This confirms what we expected in our introduction report: Almonty Industries has turned a corner, and the higher tungsten prices will now be reflected in the company’s financial results.
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The author has no position in Almonty Industries. Almonty is not a sponsor of the website, but we were compensated by a third party to keep an eye on the company’s progress. Please read the disclaimer