North American Tungsten release negative Q2 results, update on CanTung mine
2011-06-02 20:57:48 [Print]
PITTSBURGH (Asian Metal) 2 Jun 11 – North American Tungsten (NAT) reported its Q2 results for the period ended March 31 2011, recording a net loss as production during the restart operation at CanTung was well below planned levels due to site difficulties. New mining equipment was received during March and April of this year that looks to significantly increase production at the mine that has been on care and maintenance since October 2009.
The wholly-owned CanTung mine is located in northern Canada in the Yukon Territories. It is a primary producer of tungsten concentrate through underground operations. The MacTung deposit is located North of the CanTung mine in the Yukon Territories. Stephen Leahy, President and CEO of North American Tungsten, stated that the MacTung tungsten resource is one of the largest high grade undeveloped tungsten-skarn deposits in the world with a resource estimate of 33 million tons reaching an average grade of 0.88% WO3.
During the quarter, NAT recorded a net loss of CAD7.7 million as mine operating costs reached CAD16.7 million for the three months. Total concentrate sales during the second quarter reached CAD11.4 million compared to CAD3.7 million the previous year. Because of poor underground and mill equipment availability and development delays, the low production experienced at the site negatively influenced financial statistics for the quarter despite increasing prices for APT, now ranging from USD465-475/mtu.
Capital expenditures at CanTung reached a total of CAD6.5 million compared to CAD0.15 million the year prior due to purchasing mining equipment, power generation and underground haulage ways that were needed to be put in place for the re-start production program to continue. A special committee had been formed to focus primarily on exploration and development activities at MacTung, representing total capital expenditures of CAD0.24 million at the undeveloped deposit.
Production at the Cantung mine was affected by numerous start-up operational issues as the company focused on increasing production capacity throughout the quarter with the addition of several important pieces of mining equipment. At NAT’s 100% owned mine, delays in the installation of more efficient power generators, limited mill equipment availability and slower than expected delivery of its new underground mine equipment kept Q2 plans substantially below expectations as the company was unable to run its mill at its forecasted efficiency.
Concentrate production for the quarter was well below plan as shortfalls in tons mined, grade and mill recovery negatively affected the company both operationally and financially. Production for the quarter reached 43,728 MTUs of WO3. Tons milled during the second quarter were reported at 76,980t at an average grade of 0.85% while experiencing total mill recovery of 73.35%.
A significant amount of new equipment and systems were delivered and installed late in the second quarter, which caused the production volumes to be back-end weighted in March. The newly operational equipment resulted in an increase in production, reaching close to 45,000 MTUs between April 1 and May 22. The company expects to have resolved any operational issues for the time being as it goes forward with increased production based on a consistent rate of underground development. Currently, NAT plans to work towards a 25,000 MTU per month production volume as it continues to seek ways to improve underground mining techniques and enhance mill recovery.
Shares of North American Tungsten (TSE:NTC) stayed even after market close ending at CAD0.33 per share.
The wholly-owned CanTung mine is located in northern Canada in the Yukon Territories. It is a primary producer of tungsten concentrate through underground operations. The MacTung deposit is located North of the CanTung mine in the Yukon Territories. Stephen Leahy, President and CEO of North American Tungsten, stated that the MacTung tungsten resource is one of the largest high grade undeveloped tungsten-skarn deposits in the world with a resource estimate of 33 million tons reaching an average grade of 0.88% WO3.
During the quarter, NAT recorded a net loss of CAD7.7 million as mine operating costs reached CAD16.7 million for the three months. Total concentrate sales during the second quarter reached CAD11.4 million compared to CAD3.7 million the previous year. Because of poor underground and mill equipment availability and development delays, the low production experienced at the site negatively influenced financial statistics for the quarter despite increasing prices for APT, now ranging from USD465-475/mtu.
Capital expenditures at CanTung reached a total of CAD6.5 million compared to CAD0.15 million the year prior due to purchasing mining equipment, power generation and underground haulage ways that were needed to be put in place for the re-start production program to continue. A special committee had been formed to focus primarily on exploration and development activities at MacTung, representing total capital expenditures of CAD0.24 million at the undeveloped deposit.
Production at the Cantung mine was affected by numerous start-up operational issues as the company focused on increasing production capacity throughout the quarter with the addition of several important pieces of mining equipment. At NAT’s 100% owned mine, delays in the installation of more efficient power generators, limited mill equipment availability and slower than expected delivery of its new underground mine equipment kept Q2 plans substantially below expectations as the company was unable to run its mill at its forecasted efficiency.
Concentrate production for the quarter was well below plan as shortfalls in tons mined, grade and mill recovery negatively affected the company both operationally and financially. Production for the quarter reached 43,728 MTUs of WO3. Tons milled during the second quarter were reported at 76,980t at an average grade of 0.85% while experiencing total mill recovery of 73.35%.
A significant amount of new equipment and systems were delivered and installed late in the second quarter, which caused the production volumes to be back-end weighted in March. The newly operational equipment resulted in an increase in production, reaching close to 45,000 MTUs between April 1 and May 22. The company expects to have resolved any operational issues for the time being as it goes forward with increased production based on a consistent rate of underground development. Currently, NAT plans to work towards a 25,000 MTU per month production volume as it continues to seek ways to improve underground mining techniques and enhance mill recovery.
Shares of North American Tungsten (TSE:NTC) stayed even after market close ending at CAD0.33 per share.
Tungsten Oxide WO3 99.95%min FOB China
Unit:USD/mtu
China tungsten concentrate producers' suspension number statistics by province by month
Unit: pcs
