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welcome shakerzzz!!! Malaga is a GEM!!!
SAN FRANCISCO (MarketWatch) -- Used in everything from light bulbs to bullets, tungsten is a metal that's all but monopolized by China, which produces about 85% of the world's supply -- leaving the U.S. at a handicap.
Tungsten is actually "one of those seldom considered metals that contribute broadly to modern life," said Eric Coffin, editor of the HRA Journal and other publications focused on metals exploration, development and production stocks.
And the "the need for new tungsten supplies has created a business opportunity for new suppliers," said Lawrence Roulston, editor of the investment newsletter Resource Opportunities.
Unfortunately, the U.S. does not mine tungsten, though it does have a few "large plants that take tungsten concentrate and produce intermediate products and finished products from it," said Coffin. Some companies like lighting manufacturer OSRAM Sylvania have "long-term supply contracts that ensure at least some of the concentrate will keep showing up," but "this doesn't guarantee supply per se."
Tungsten's used in light filaments and in the military to make armor-piercing bullets, but the biggest use is as cemented carbides, or "hardmetals," in industrial applications such as tools and dies.
The metal's extremely-high melting point also means that it's useful for things like drill bits, where hardness and ability to withstand high heat and friction are a must, said Coffin. That's particularly important given the growth in drilling in the oil and mining industries.
Tungsten's increasing uses and growing economic demand for the metal has helped prices climb more than 300% in almost 10 years to average $254.50 per metric ton unit of ammonium paratungstate, as of Nov. 8, according to Maria Smirnova, a research associate at Sprott Asset Management Inc. Ammonium paratungstate, or APT, is a product of tungsten concentrates, according to the International Tungsten Industry Association. See the Web site.
Prices are up around 180% in just the last two years, said Smirnova, emphasizing that prices didn't really begin to rise until about 2005. See Metal Bulletin for subscription-based pricing.
And China "has by far the largest resources base" in the world for tungsten, said Coffin. It's been the dominant supplier for decades and that's unlikely to change.
That bodes well for China, especially since global demand for the metal has been climbing at a pace of 5%-6% a year "thanks to industrialization and use of tungsten in a wider variety of products," according to Coffin.
Global mine production of tungsten in 2005 was estimated at 76,500 metric tons, according to the U.S. Geological Survey. China's mine production that year was estimated at 69,000.
The biggest problem is that China has become a "net importer of ore and only exports finished goods containing tungsten," said Robert Hinchcliffe, chief executive officer at Elko, Nevada-based Galway Resources (CA:GWY 1.67, -0.04, -2.34%) .
China's pull
China's strength in the market has been more than apparent. The country has gone through periods in the past where it undertook -- intentionally or otherwise -- "predatory pricing that wiped out almost all Western production of the metal," said Coffin.
Part of that was due to its drive for foreign currency when it first started opening up its economy, he said. And the last extended run up in tungsten prices happened in the late 1970s to early 1980s following a "terrible earthquake in one of China's main-producing areas that cut back supplies for years," he said.
Now tungsten is experiencing the same process the metals market has seen with other metals, he said. "The domestic (Chinese) market has increased a vast amount and is now absorbing most of the internal production."
"It no longer needs to sell at a loss or generate foreign reserves and ... has gone from offering exporters credits on sales of concentrate or APT to charging excise in the past couple of years," he said.
Tungsten scenario..today
“Keep an eye on tungsten,” Byron King urges, just back from London, where he met with some notable names in the energy and mining industries. “As I’ve mentioned before, tungsten is critical to machine tools and numerous other high-tech applications.
“What we're seeing globally -- and what several top-level experts confirmed to me this week in London -- is that there are some metals facing looming supply shortages. The days of a user just calling up the supply house and ordering off the shelf are ending. Tungsten is in one of those scenarios just now.
“Several of the world's largest non-Chinese tungsten mines got bought outright this year by tungsten users. The users understand that their supply chain is only as strong as the weakest link. And that weak link is the supply of ore in the ground plus the mine, mill and upgrading facility to obtain the basic raw material.
“It's not like there are a slew of other mines out there waiting for the price to go up so they can open the workings and push product out the door. In the West, there is only LEGACY tungsten mining -- mines and mills from years ago. There's NOTHING new in the pipeline.
“If you want to have some exposure to a critical, strategic metal with virtually NO substitute, you need to own some shares of one miner in my Energy & Scarcity portfolio. “I've met the CEO, and he's a solid player. He has a working mine, he's selling product, he has cash flow and he has ANOTHER mine that he's working to develop. It's a rock-solid story.”
Tungsten price climbing, China need it. But Malaga is not only Tungsten, add hydroelectric plant (second one coming) and mine tailings (market cap only $20m UNDERVALUED)
Malaga Inc. to receive US$ 2.5 million from recycling copper-silver rich mine tailings from Pasto Bueno
MONTREAL, Feb. 3 /CNW Telbec/ - Malaga Inc. (TSX:MLG - News) is pleased to announce that it has found a technique to recycle the Copper(Cu)/Silver(Ag) rich mine tailings produced at its Pasto Bueno mine as a by-product during processing of tungsten ore. During the next 6 months, more than 5,000 tonnes of this tailing will be recycled generating more than US$ 2.5 million.
During 2009, Malaga invested in a small pilot plant in order study the feasibility of concentrating the mine tailings produced at Pasto Bueno. The goal was to produce a saleable tailing concentrate. After solving several problems, the company succeeded in producing a tailing concentrate enriched Cu and Ag and low enough in impurities to allow commercial extraction of the Cu and Ag content.
Malaga has now signed an agreement with a Peruvian company to process the enriched tailings and expects to receive more than US$ 2.5 million during the next 6 months. After disposing of the mine tailings that accumulated during its first 3 years of operations, Malaga expects to produce 300-400 tonnes of tailing concentrates per month. This amount will increase during 2010 as Malaga increases its rate of production producing a steady additional cash flow from recycling.
Malaga President and CEO, Jean Martineau commented, "We are pleased to have found a technical novel solution for the recycling of our mine tailings that initially appeared to be very difficult to recycle. Thanks to our in house metallurgical engineers, Malaga is able to increase its operational cash flow and act in an environmentally responsible manner."
Tungsten Outlook for 2010
Pierre Monet, Malaga's CFO also commented on the tungsten market at the beginning of 2010. "We are delighted to see that the price of tungsten, as we expected, has increased both inside China and on the world market. Indeed, since the 15th of January 2010, the price of APT (Ammonium Paratungstate) has increased three times (in two $5 steps and one $2 step) from US$185 to reach US$197 per MTU. We expect that this tendency will continue, although more gradually, throughout 2010 and that Malaga as its production increases at Pasto Bueno will be in a much stronger position as the leading producer of tungsten ore in the Americas."
ABOUT MALAGA INC.
Malaga Inc. is the Americas leading producer of tungsten ore and owns the only operating tungsten mine in the Americas. Current tungsten concentrate production is approximately 7,500 MTUs per month and is expected to increase to above 9,000 MTUs, in the near future. Malaga also seeks diverse growth opportunities such as developing the hydroelectric potential of its Pasto Bueno property, through Hidropesac, in which the Company holds 44%, as well as through its holding in Dynacor Gold Mines Inc., in which the Company owns 13.5%.
The Company's shares trade on the Toronto Stock Exchange (TSX:MLG - News). Malaga is currently the only publicly traded tungsten producing company outside of China. Updates and information on Malaga are available at its web site www.malaga.ca.
Yes, took most of my profits from gold plays.I like Malaga at this price...should be trading much higher in the next few months, really undervalued, notice not to many shares for sale, actually none after .17 today. maybe this is why...trying to find out if they are still holding..65% Inst investors. Little downside..big upside. Not sexy like Gold, Lithium, Silver, and REE's but the market will take notice of Malaga and Tungsten..just a matter of time. More than happy to accumulate at these prices.
Institutional shareholders ( over 65%)
Sprott Asset Management
AGF
Trapeze Asset Management
Caisse de Dépôt et de Placement (Sodemex)
are u IN? MLG (TSX) ready to explode!!
ohhhhh niceeeee "There were several other positive material changes for other smaller holdings recently. Malaga completed a rights issue (in which we participated) providing the funds to double its production from its current 250 t/d to 500 t/d by next spring, justifying a value 5 times its current share price. The resulting increased cash flow should allow the company to drill off its considerable tungsten veins, likely driving the value even higher."
http://www.trapezeasset.com/trapezeasset/newsletter/TAMI_Q3_2009.pdf
page 9
January 2010 pdf ..... http://www.malaga.ca/images/pdf/fact-sheet-jan-2010-es.pdf
Potential...undervalued by 5x according to report..
what do u mean?
Please scroll down to pg # 9...under " worth the wait ". One of our institutional investors..Trapeze asset management.
WORTH THE WAIT
30 Oct 2009 ... Firstgold and Malaga. We are multi-cap value investors and, despite the ..... Trapeze Asset Management Inc., its affiliates and/or their .
www.trapezeasset.com/trapezeasset/newsletter/TAMI_Q3_2009.pdf
Canadians executives in Peru right now ?
Very important ..... PERUVIAN LISTING !!!! Make volume in this stock.
agree potential is HUGE!!
yeah i see...Goldman Sachs?
and CIBC is our TA right?
question is who is selling? manipulation?
I probably won't sell until it hits dollars. Last time I sold a mining stock(after it doubled) it continued on to be a 50 bagger. Quest Uranium was the name of that puppy. This could do the same type of thing.
Yes first day .....
Goldman is starting to buy
14:53:05
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0.155
0.00
11,000
65 Goldman
9 BMO Nesbitt
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8,500
65 Goldman
9 BMO Nesbitt
K
14:44:33
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1 Anonymous
9 BMO Nesbitt
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14:43:29
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0.15
-0.005
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65 Goldman
1 Anonymous
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9 BMO Nesbitt
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79 CIBC
1 Anonymous
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0.14
-0.015
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79 CIBC
1 Anonymous
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0.14
-0.015
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79 CIBC
1 Anonymous
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0.135
-0.02
10,000
79 CIBC
7 TD Sec
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-0.015
500
80 National Bank
1 Anonymous
K
All operations at ASK look ..... http://ih.advfn.com/p.php?pid=trades&symbol=TSE:MLG
Few days for Peruvian license to put up the production.
u will sell at 0.50+ so forget about commissions... Malaga is undervalued and will run soon imo
Nice. I bought some at .15 yesterday but my total order didn't fill so I filled the rest of my order at .14 this morning. Sucks because they charged 2 commissions. I haven't been trading us much lately so they bumped my commissions back up to 28.95 from 9.99
wowww check last buys at the ask!!! RTQ .155
manipulation
Buyer Seller
85 Scotia 85 Scotia
12:01:03 T 0.135 -0.02 30,500
Sinking on good news. What else is new? lol
Malaga Inc. to receive US$ 2.5 million from recycling copper-silver rich mine tailings from Pasto Bueno.
Montreal, Quebec, February 3, 2010 – Malaga Inc. (TSX:MLG) is pleased to announce that it has found a technique to recycle the Copper(Cu)/Silver(Ag) rich mine tailings produced at its Pasto Bueno mine as a by-product during processing of tungsten ore. During the next 6 months, more than 5,000 tonnes of this tailing will be recycled generating more than US$ 2.5 million.
During 2009, Malaga invested in a small pilot plant in order study the feasibility of concentrating the mine tailings produced at Pasto Bueno. The goal was to produce a saleable tailing concentrate. After solving several problems, the company succeeded in producing a tailing concentrate enriched Cu and Ag and low enough in impurities to allow commercial extraction of the Cu and Ag content.
Malaga has now signed an agreement with a Peruvian company to process the enriched tailings and expects to receive more than US$ 2.5 million during the next 6 months. After disposing of the mine tailings that accumulated during its first 3 years of operations, Malaga expects to produce 300-400 tonnes of tailing concentrates per month. This amount will increase during 2010 as Malaga increases its rate of production producing a steady additional cash flow from recycling.
Malaga President and CEO, Jean Martineau commented, "We are pleased to have found a technical novel solution for the recycling of our mine tailings that initially appeared to be very difficult to recycle. Thanks to our in house metallurgical engineers, Malaga is able to increase its operational cash flow and act in an environmentally responsible manner.”
Tungsten Outlook for 2010
Pierre Monet, Malaga’s CFO also commented on the tungsten market at the beginning of 2010. “We are delighted to see that the price of tungsten, as we expected, has increased both inside China and on the world market. Indeed, since the 15th of January 2010, the price of APT (Ammonium Paratungstate) has increased three times (in two $5 steps and one $2 step) from US$185 to reach US$197 per MTU. We expect that this tendency will continue, although more gradually, throughout 2010 and that Malaga as its production increases at Pasto Bueno will be in a much stronger position as the leading producer of tungsten ore in the Americas.”
ABOUT MALAGA INC.
Malaga Inc. is the Americas leading producer of tungsten ore and owns the only operating tungsten mine in the Americas. Current tungsten concentrate production is approximately 7,500 MTUs per month and is expected to increase to above 9,000 MTUs, in the near future. Malaga also seeks diverse growth opportunities such as developing the hydroelectric potential of its Pasto Bueno property, through Hidropesac, in which the Company holds 44%, as well as through its holding in Dynacor Gold Mines Inc., in which the Company owns 13.5%.
The Company's shares trade on the Toronto Stock Exchange (TSX:MLG). Malaga is currently the only publicly traded tungsten producing company outside of China. Updates and information on Malaga are available at its web site www.malaga.ca.
FORWARD-LOOKING INFORMATION
Certain statements in the foregoing may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Malaga, or industry results, to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management’s current expectations regarding future events and operating performance as of the date of this news release.
--------------------------------------------------------------------------------
Malaga to recycle Pasto Bueno tailings
2010-02-03 09:02 ET - News Release
Mr. Jean Martineau reports
MALAGA INC. TO RECEIVE US$ 2.5 MILLION FROM RECYCLING COPPER-SILVER RICH MINE TAILINGS FROM PASTO BUENO
Malaga Inc. has found a technique to recycle the copper/silver-rich mine tailings produced at its Pasto Bueno mine as a byproduct during processing of tungsten ore. During the next six months, more than 5,000 tonnes of this tailing will be recycled generating more than $2.5-million (U.S.).
During 2009, Malaga invested in a small pilot plant in order study the feasibility of concentrating the mine tailings produced at Pasto Bueno. The goal was to produce a saleable tailing concentrate. After solving several problems, the company succeeded in producing a tailing-concentrate-enriched copper and silver, and low enough in impurities to allow commercial extraction of the copper and silver content.
Malaga has now signed an agreement with a Peruvian company to process the enriched tailings and expects to receive more than $2.5-million (U.S.) during the next six months. After disposing of the mine tailings that accumulated during its first three years of operations, Malaga expects to produce 300 to 400 tonnes of tailing concentrates per month. This amount will increase during 2010 as Malaga increases its rate of production producing a steady additional cash flow from recycling.
Malaga president and chief executive officer, Jean Martineau, commented: "We are pleased to have found a technical novel solution for the recycling of our mine tailings that initially appeared to be very difficult to recycle. Thanks to our in house metallurgical engineers, Malaga is able to increase its operational cash flow and act in an environmentally responsible manner."
Tungsten outlook for 2010
Pierre Monet, Malaga's chief financial officer also commented on the tungsten market at the beginning of 2010: "We are delighted to see that the price of tungsten, as we expected, has increased both inside China and on the world market. Indeed, since the 15th of January 2010, the price of APT (ammonium paratungstate) has increased three times (in two $5 steps and one $2 step) from $185 (U.S.) to reach $197 (U.S.) per MTU. We expect that this tendency will continue, although more gradually, throughout 2010 and that Malaga as its production increases at Pasto Bueno will be in a much stronger position as the leading producer of tungsten ore in the Americas."
Malaga Inc. to receive US$ 2.5 million from recycling copper-silver rich mine tailings from Pasto Bueno
MONTREAL, Feb. 3 /CNW Telbec/ - Malaga Inc. (TSX:MLG - News) is pleased to announce that it has found a technique to recycle the Copper(Cu)/Silver(Ag) rich mine tailings produced at its Pasto Bueno mine as a by-product during processing of tungsten ore. During the next 6 months, more than 5,000 tonnes of this tailing will be recycled generating more than US$ 2.5 million.
During 2009, Malaga invested in a small pilot plant in order study the feasibility of concentrating the mine tailings produced at Pasto Bueno. The goal was to produce a saleable tailing concentrate. After solving several problems, the company succeeded in producing a tailing concentrate enriched Cu and Ag and low enough in impurities to allow commercial extraction of the Cu and Ag content.
Malaga has now signed an agreement with a Peruvian company to process the enriched tailings and expects to receive more than US$ 2.5 million during the next 6 months. After disposing of the mine tailings that accumulated during its first 3 years of operations, Malaga expects to produce 300-400 tonnes of tailing concentrates per month. This amount will increase during 2010 as Malaga increases its rate of production producing a steady additional cash flow from recycling.
Malaga President and CEO, Jean Martineau commented, "We are pleased to have found a technical novel solution for the recycling of our mine tailings that initially appeared to be very difficult to recycle. Thanks to our in house metallurgical engineers, Malaga is able to increase its operational cash flow and act in an environmentally responsible manner."
Tungsten Outlook for 2010
Pierre Monet, Malaga's CFO also commented on the tungsten market at the beginning of 2010. "We are delighted to see that the price of tungsten, as we expected, has increased both inside China and on the world market. Indeed, since the 15th of January 2010, the price of APT (Ammonium Paratungstate) has increased three times (in two $5 steps and one $2 step) from US$185 to reach US$197 per MTU. We expect that this tendency will continue, although more gradually, throughout 2010 and that Malaga as its production increases at Pasto Bueno will be in a much stronger position as the leading producer of tungsten ore in the Americas."
ABOUT MALAGA INC.
Malaga Inc. is the Americas leading producer of tungsten ore and owns the only operating tungsten mine in the Americas. Current tungsten concentrate production is approximately 7,500 MTUs per month and is expected to increase to above 9,000 MTUs, in the near future. Malaga also seeks diverse growth opportunities such as developing the hydroelectric potential of its Pasto Bueno property, through Hidropesac, in which the Company holds 44%, as well as through its holding in Dynacor Gold Mines Inc., in which the Company owns 13.5%.
The Company's shares trade on the Toronto Stock Exchange (TSX:MLG - News). Malaga is currently the only publicly traded tungsten producing company outside of China. Updates and information on Malaga are available at its web site www.malaga.ca.
welcome, Malaga is really undervalued...8 bagger imo
2010 MINING INDABA: Rare metal supply will not cope with demand growth, Lifton says
Cape Town 01 February 2010 17:13
The supply of rare metals, such as molybdenum, bismuth and tungsten, will not be enough to cope with demand going forward, Jack Lifton told delegates at the 2010 Mining Indaba in Cape Town.
“In my opinion we will never see a surplus of metal again,” consultant and author Lifton said. “[Rare] metals prices are simply going to go up.”
Lifton qualifies rare metals as those that have production of 25,000 tpy or less. These include cadmium, bismuth, molybdenum, selenium and germanium to name but a few.
“Demand is increasing for all metals. Demand is increasing for rare metals in particular, because these are the metals for our modern technology,” Lifton said.
“The growth of demand is going to swamp the capacity,” he added.
With current production levels being consumed almost totally by consumers in the west, supply will not be able to cope with stronger demand from the developing world, according to Lifton.
“We 600 million people of the west are using all the rare metals [being produced]. If China comes in as a consumer market we are not going to have the reserves,” Lifton said.
Supply has diminished already due to production cuts during the economic downturn.
Rare metals are generally by-products of base metals, therefore their production levels are hugely dependent on base metal production.
In 2008, when global zinc production totalled about 11 million tonnes, it generated around 20,000 tonnes of cadmium, 568 tonnes of indium and 105 tonnes of germanium, according to Lifton’s figures.
“If zinc production falls [as it has already done so] the impact on rare metals for technology is vastly disproportionate [to that of zincs end uses],” Lifton pointed out.
The same can be said for molybdenum, which comes from copper, and rhenium, which is a by-product of moly, according to Lifton.
Lifton told delegates he had spoken at a conference two years ago where many molybdenum producers present did not know what rhenium was.
The market must become more aware of the situation and should recognise the potential value in these metals going forward, Lifton said.
Had a long conversation with Management, and i think that we should her some news on the Silver & Copper very soon. Maybe the Q2 report.
China tungsten prices still rising on tight supply
Shanghai 02 February 2010 06:08
China's tungsten market prices gained for a fifth week as supply remains tight.
Tungsten concentrate was trading at 74,000-74,500 yuan ($10,824-10,897) per tonne in the domestic market, up 500 yuan from last week.
"Concentrate prices rose again this week and it is not easy to secure cargo as many mines are conducting maintenance now," said a producer in Jiangxi.
Export offers were raised in line with higher concentrate prices but bookings remained unchanged over the weekend.
Ammonium paratungstate (APT) was trading at $208-210 per mtu fob China, while offers have risen to $210-215 per mtu.
"We sold some APT last weekend to a US buyer at $208," said a Jiangxi exporter, adding that the market was much more active than this time last year thanks to the global economic recovery.
Meanwhile, ferro-tungsten was trading at $30-31 per kg fob.
Another exporter in Jiangxi told MB it had lifted its ferro-tungsten offers by $0.2 this week to $31.2 per kg fob China to test the market and has secured no deals at the level yet.
Many market participants expect that tungsten prices to continue to rise due to tight supply and better demand, said market participants.
"I think supply will remain tight until March or even later as most mines will return back to production only after the Lantern Festival," on February 28, said an exporter in Hunan, adding that it just booked a deal for 8 tonnes ferro-tungsten this morning at $31 per kg fob China.
Copyright © Metal Bulletin Ltd. All rights reserved.
***2010 MINING INDABA: Rare metal supply will not cope with demand growth, Lifton says
Cape Town 01 February 2010 17:13
The supply of rare metals, such as molybdenum, bismuth and tungsten, will not be enough to cope with demand going forward, Jack Lifton told delegates at the 2010 Mining Indaba in Cape Town.
“In my opinion we will never see a surplus of metal again,” consultant and author Lifton said. “[Rare] metals prices are simply going to go up.”
Lifton qualifies rare metals as those that have production of 25,000 tpy or less. These include cadmium, bismuth, molybdenum, selenium and germanium to name but a few.
“Demand is increasing for all metals. Demand is increasing for rare metals in particular, because these are the metals for our modern technology,” Lifton said.
“The growth of demand is going to swamp the capacity,” he added.
With current production levels being consumed almost totally by consumers in the west, supply will not be able to cope with stronger demand from the developing world, according to Lifton.
“We 600 million people of the west are using all the rare metals [being produced]. If China comes in as a consumer market we are not going to have the reserves,” Lifton said.
Supply has diminished already due to production cuts during the economic downturn.
Rare metals are generally by-products of base metals, therefore their production levels are hugely dependent on base metal production.
In 2008, when global zinc production totalled about 11 million tonnes, it generated around 20,000 tonnes of cadmium, 568 tonnes of indium and 105 tonnes of germanium, according to Lifton’s figures.
“If zinc production falls [as it has already done so] the impact on rare metals for technology is vastly disproportionate [to that of zincs end uses],” Lifton pointed out.
The same can be said for molybdenum, which comes from copper, and rhenium, which is a by-product of moly, according to Lifton.
Lifton told delegates he had spoken at a conference two years ago where many molybdenum producers present did not know what rhenium was.
The market must become more aware of the situation and should recognise the potential value in these metals going forward, Lifton said.
China closed Tungsten mines, price of that metal dropped + financial crisis
we are back now, Malaga Inc is undervalued!!!
Look this from MINISTER OF ENERGY AND METALS of PERU......http://www.minem.gob.pe/descripcion.php?idSector=1&idTitular=1762 -------------------------------------------------
Malagar increase 232% his production . WOW
YAHoo Message boards ....... http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_M/forumview?bn=84090
Skyrocketing Tungsten Price
Skyrocketing Tungsten Price
Recently, the prices of tungsten materials such as tungsten ores, tungsten oxide, tungsten trioxide, APT, AMT, tungsten acid and also tungsten powder, tungsten carbide powder, the major non ferrous metal keep increasing greatly. Many people who intend to buy tungsten products find the price is increasing so quickly that they have never expected. In fact, there are several reasons for the skyrocketing price.
First of all, the owners of ore mine keep the mineral on their hands and not willing to sell the materials, expecting the price may go much higher. They will not sell the materials until the price reaches the highest point, and then they can make large sum of money.
Besides, due to the upcoming Spring Festival, most of the manufactures stopped their machines and prepared the overall check and regulation. So the national total tungsten production volume is dropping greatly. With so little tungsten products in the market, no doubt the price keeps increasing.
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TUNGSTEN CHART
http://www.infomine.com/investment/charts.aspx?c=tungsten&u=lb&x=usd#chart
PERUVIAN METALS PRODUCTION
Skyrocketing Tungsten Price
Recently, the prices of tungsten materials such as tungsten ores, tungsten oxide, tungsten trioxide, APT, AMT, tungsten acid and also tungsten powder, tungsten carbide powder, the major non ferrous metal keep increasing greatly. Many people who intend to buy tungsten products find the price is increasing so quickly that they have never expected. In fact, there are several reasons for the skyrocketing price.
First of all, the owners of ore mine keep the mineral on their hands and not willing to sell the materials, expecting the price may go much higher. They will not sell the materials until the price reaches the highest point, and then they can make large sum of money.
Besides, due to the upcoming Spring Festival, most of the manufactures stopped their machines and prepared the overall check and regulation. So the national total tungsten production volume is dropping greatly. With so little tungsten products in the market, no doubt the price keeps increasing.
And the Spring Festival in February is estimated to last 20 days to one month, and experts in tungsten industry believe during this period, the tungsten price will maintain a skyrocketing trend.
Malaga Inc. is America's leading producer of tungsten ore and owns the only operating tungsten mine in the Americas. In February 2009, Malaga was successful in securing a 5-year supply agreement with a large tungsten end-user. The Pasto Bueno tungsten mine was purchased in 2005 by Malaga which has since invested more than 19.2 million dollars to restart and to increase tungsten production.
Since 1941, more than 6 million tons of tungsten ore has been produced at Pasto Bueno. Current tungsten concentrate production is approximately 5,000 MTU per month (1 MTU = 10 kilos of tungsten concentrate) and Malaga expects to double this in 2010. Malaga produces one of the highest quality tungsten concentrates available in the world due to its low content of impurities.
Malaga trades on the Toronto Stock Exchange (MLG), is a pure tungsten play, and is currently the only publicly traded tungsten producing company outside of China
China has tradtionally been the world's leading tungsten producer, accounting for 85% of the world's production, estimated at 35 000 t of tungsten concentrate. China's tungsten production does not seem to be affected by the slump in global pruices as production remains at about 70% capacity. This compares to 10% production capacity exhibited by western producers. China's wolframite reserves are being rapidly depleted with an estimated 12 years reserves or 600 000 t remaining. Although China has substantial scheelite resources, they are of a much lower grade and quality.
In the past few decades, tungsten prices have been up and down like a toilet seat at a mixed party. According to the International Tungsten Industry Association, since 1950 tungsten prices have “fluctuated between a nadir of $10 per MTU in 1963 and a peak of $175 in 1977.” This all changed in 2005. Since January tungsten prices have moved from the $60 range to break the old high, at the very least in nominal terms, with recent prices quoted at about $220 per MTU.
Investors should note that tungsten is not traded on an exchange, such as the London Metal Exchange (LME), and the only price information that is available globally is published by the London Metal Bulletin and is based on information elicited from producers, consumers and traders.
Conclusion
Chinese supply-demand can be fickle, and the tungsten market has had a bumpy ride as a result, but indications are that, as with most other commodities, the Chinese are eating up inventories and may switch from being net exporters to net importers. If this is the case and there is not a large stockpile just around the bend waiting to blindside the market, tungsten prices should remain around current levels.
Despite impressive looking charts, the share price of publicly listed tungsten vehicles like North American Tungsten and Tiberon Minerals do not factor in the enormous profits that will accrue at $220 tungsten, and investors looking for a speculation still have time to board the proverbial train.
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Since the 1910s, the Pasto Bueno sector produced about 6 million tons of mineral grading approximately 0.75% WO3. The production peaked in 1980-1981, at a rate of 1000 tons/day. From 1982, production decreased due to low tungsten prices. The Company completely ceased its operations in 2002.
In November 2005, Malaga purchased Pasto Bueno. Historically, the previous owner had identified 31 veins, mining ore solely from 5 of these structures. Malaga, having completed surface exploration, has been able to identify to date, 75 veins, 25 of which are major structures. Essentially this means that the Pasto Bueno property still has extensive unknown potential.
LAST UP DATE
http://www.malaga.ca/images/pdf/fact-sheet-nov-2009-en.pdf
Since the time of purchase, the Company has invested CAN$14.2 million for the rehabilitation of the mine and the 250 tons/day plant. In September 2006, it began pre-production at a level of 50 tons/day. The mine reached the mill's maximum capacity in June 2007, and has been producing at a steady level of 250 tons/day. Malaga has also dramatically increased the WO3 recovery rate from a historical level of 50-60% to more than 80% in today's operation. The Company is currently working on upgrading daily production at the plant, in order to reach a daily capacity of 500 tons/day in 2010.
Tungsten offtake agreement with Global Tungsten Products (GTP; formerly Osram Sylvania)
[chart]images.investorshub.advfn.com/images/uploads/2010/2/25/uurxz66666.JPG[/chart]
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