Production was significantly higher in the second half, compared to the first, and progress on the La Parrilla tungsten and tin mine through the ‘plant improvement plan’ continued to boost performance.
It noted that plant availability moved above 90% before the year end, and recovery rates improved significantly.
“Whilst 2020 was a very challenging year for W, progress was made and there was a clear improvement in H2 with greater plant availability and an increase in recoveries which lead to an increase in production,” Masterman said.
In terms of financials, the company generated EUR2.51mln of revenue up from 365,000 in 2019, and reported a EUR3.48mln loss including impairments totalling EUR3.4mln, EUR845,000 operating expenses and EUR1.6mln of admin expenses.
The company ended 2020 with EUR956,000 of cash and was due EUR7.2mln of trade and receivables, plus EUR1.17mln in inventory.
Looking to the current financial year the company expects to produce between 880 and 1,000 tonnes of concentrate, up from around 380 tonnes in 2020, as it continues to work towards a 2mln tonne per year run-of-mine to produce 2,700 tonnes of tungsten concentrate and 200 tonnes of tin concentrate.
The company expects that La Parrilla will return to a 24/7 operation and be closer to the production target by the fourth quarter of 2021.
W said also intends to get production back online at the tungsten mine in Regua, Portugal
It anticipates reaching an initial breakeven period before achieving profitability.
“As we look ahead, the management team’s clear priority is to increase production at La Parrilla as we move to a 24/7 operation in order to increase production,” Masterman added.
“We appreciate the continued support of shareholders and are fully committed to reaching our production targets at La Parrilla, which will then transform the business to a profitable mining company with positive cashflow and deliver a turnaround in shareholder value.”
Masterman described commodity prices as robust, noting that the European ammonium paratungstate (APT) price remains strong, at US$270 to US$280, whilst tin prices were said to have strengthened, to US$31,000 per tonne.