- Tungsten West
- 24 December 2025 09:15:50
Source: Sharecast
The AIM-traded miner said it completed an updated feasibility study during the period, demonstrating strong economic returns based on pricing assumptions of $400 per metric tonne unit for tungsten and $32,500 per tonne for tin, levels it noted were now materially below prevailing spot prices.
Tungsten and tin prices had since been tracking above $800 per metric tonne unit and $40,000 per tonne respectively.
Tungsten West also started its project financing process to secure a combination of debt and equity funding to restart operations at Hemerdon.
The company reported an operating loss of £3.8m for the period, with cash reserves of £1m at the end of September.
It said £5.2m was raised during the half-year through two tranches of convertible loan notes, contributing to continued investor support.
Tungsten West added that its share price rose from 3.625p at the start of April to 8.75p at the end of September.
Given the expected exercise price of 3p per share for the loan notes, the increase resulted in a £37m non-cash fair value adjustment, leading to a total loss for the period of £40.4m.
Following the period end, the group said it completed a processing trial which it described as safe and highly encouraging, producing more than 1,400 metric tonne units of tungsten trioxide concentrate at grades exceeding target levels.
Tungsten West also entered into an engineering, procurement and construction agreement for a new crushing, screening and ore sorter facility, and agreed a £4m bridge facility with strategic investors, part of which had already been deployed to advance engineering works and secure long-lead items.
The firm said good progress had been made on securing full project funding across both debt and equity, with completion expected in the first quarter of 2026.
It also entered into a binding agreement for the full conversion of the convertible loan notes into equity, subject to shareholder approval, which the board described as a significant step forward in its financing strategy.
During the period, chief financial officer Alistair Stobie stepped down and resigned from the board, with Phil Povey appointed interim CFO.
Following the period end, Povey was appointed chief financial officer and a director.
Tungsten West said the convertible loan note facility had now raised £22.3m in total, with no further amounts to be drawn, and confirmed the £4m bridging loan facility remained in place.
The company cautioned that there remained material uncertainty regarding further funding, which could impact its ability to continue as a going concern.
As of 30 November, Tungsten West said it had cash reserves of £0.4m.
The board said it remained positive on the long-term prospects for the Hemerdon mine, citing strong commodity markets and its commitment to restarting operations.
At 0853 GMT, shares in Tungsten West were flat at 10.9p.
Reporting by Josh White for Sharecast.com.