Tungsten West (LON:TUN) Hits New 12-Month High – What’s Next?

Tungsten West PLC (LON:TUN)’s share price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as GBX 51 and last traded at GBX 50, with a volume of 1612826 shares trading hands. The stock had previously closed at GBX 43.10.

Trending Headlines about Tungsten West

Here are the key news stories impacting Tungsten West this week:

• Positive Sentiment: The UK National Wealth Fund has committed up to £71 million to Tungsten West, providing the funding intended to fully finance the Hemerdon mine restart. The government backing reduces near-term funding risk and represents strategic support for a domestic source of the critical mineral tungsten. National Wealth Fund invests £71m in Tungsten West to unlock critical UK tungsten supply
• Positive Sentiment: Management says the 160-year-old Hemerdon mine is ready to move into full production, while reports describe the government financing as supporting its reopening. A successful restart could transform Tungsten West from a development-stage company into a producer and provide exposure to potentially strong tungsten demand. Tungsten mine ready for full production, boss says
• Neutral Sentiment: The announcement has been widely reported as a strategic UK minerals investment, highlighting tungsten’s importance to supply-chain security. However, the funding is still described in some reports as proposed or “up to” £71 million, so investors will likely focus on final terms, drawdown conditions and the production timetable. UK gov makes strategic £71m investment to fully fund Tungsten West’s Hemerdon mine restart
• Negative Sentiment: Although the financing removes a major obstacle, the stock remains exposed to construction and commissioning delays, operating performance, tungsten prices and possible shareholder dilution or other financing conditions. The pullback from the recent 52p high may reflect profit-taking and caution about execution rather than a deterioration in the project’s outlook.

Tungsten West Stock Up 3.8%

The company’s 50 day moving average price is GBX 37.38 and its 200 day moving average price is GBX 36.37. The company has a quick ratio of 7.04, a current ratio of 0.06 and a debt-to-equity ratio of -167.64. The firm has a market capitalization of £647.54 million, a price-to-earnings ratio of -2.00 and a beta of 0.28.

Tungsten West Company Profile

Tungsten West Plc is a UK based company focussed on recommencing production at the Hemerdon tungsten and tin mine in Devon, England.

The Hemerdon mine is the world’s third largest Tungsten resource. The mine has had over £170m spent on it via the previous operator, with first production expected in 2022 and a mine life of 18.5 years. The Company is focused on rebuilding and restarting the mine to supply two critically important strategic minerals in tungsten and tin both domestically and globally.