Pro-Life
12 years ago
Tungsten Enters the Limelight with Bullish Fundamentals: Ken Chernin
Tuesday April 16, 2013 15:11
http://www.kitco.com/ind/MetalsReport/20130416.html
Source: Brian Sylvester of The Metals Report (4/16/13)
Location, processing and capital can make the tungsten market a tough place to be, but dwindling supply and insubstantial production indicate a coming price swing. In this interview with The Metals Report, Ken Chernin, equity research analyst with Jennings Capital, talks about why investors have ignored tungsten in the past and why they should see tungsten as a global force.
The Metals Report: Tungsten is used in many applications—to make tools, drill bits, glass bottles, aluminum cans, steel and wire—because it has a high melting point and is very dense. It's a very useful metal, but the British Geological Survey called it an endangered substance in a 2012 report. Why is that?
Ken Chernin: Tungsten ranked second behind rare earths in the British Geological Survey's 2012 supply risk index based on a number of factors like location and concentration of production and reserves, but the report highlighted that tungsten (as well as rare earths) has lower recycling and low substitutability. The supply risk for tungsten stems from China's role in the industry. China accounts for approximately 83% of global tungsten concentrate production and about 62% of global tungsten reserves. China became a significant player in tungsten production in the mid-1980s. By the late 1990s, it had flooded the global market with tungsten causing concentrate prices to plunge below most western producer's variable cost. As a result, the vast majority of western mines were closed.
With low tungsten prices, there was very little investment in new tungsten projects in the past 20-plus years. Given that only a handful of tungsten mines operated without significant interruptions, technical experience in the Western world has essentially evaporated. Therefore, finding a team with experience working with tungsten is a significant barrier to entry.
TMR: Tungsten is not listed on the London Metal Exchange and is traded on the spot market, which generally leads to more price volatility. What's your forecast for ferrotungsten prices for the remainder of the year?
KC: The benchmark for tungsten concentrate is ammonium paratungstate (APT), which is the key intermediate product and most commonly traded tungsten material. The APT benchmark is based on FOB Rotterdam. Tungsten demand is correlated with growth in gross domestic product (GDP). While Europeans' consumption of tungsten is down, Europe only accounts for 12% of global consumption. China and the U.S. account for 55% and 13%, respectively, and their two economies are doing much better. According to Bloomberg, consensus estimates for growth in GDP for China and the U.S. averages 8.03% and 2.50%, respectively, for 2013, 2014 and 2015. The consensus estimate for Europe's growth in GDP during the same period is only 1%. Therefore, there is certainly an argument that APT prices are artificially low and should be higher than the current average of $350/metric ton unit ($350/Mtu), which is up 8.5% relative to the end of 2012.
TMR: This time last year we were looking ahead to a boom year in terms of tungsten pricing. Then the bottom fell out of the market. How did that happen?
KC: I believe that this was largely the result of end users stockpiling tungsten concentrate when prices were rising. In the latter half of last year, they depleted these stockpiles.
TMR: This is a nebulous market, mostly defined by end user agreements. What do investors need to know about it?
KC: As in any mining story, grade is very important. I also like good logistics and supporting infrastructure. But tungsten differs from other industrial metals and minerals and can be a tough metal to process. In fact, it is so specialized that experience with any other metal or material is not transferable. Furthermore, there are primarily two minerals that contain tungsten—wolframite and scheelite—and each requires different milling techniques. Therefore, having geologists and a metallurgist who have significant tungsten specific experience is key.
TMR: Which costs more to process, a wolframite deposit or a scheelite deposit?
KC: Wolframite generally requires a simpler process. The most significant difference between processing wolframite versus scheelite is that scheelite necessitates froth flotation. Flotation is essential in processing scheelite because the scheelite is particularly brittle, and the crushing circuit results in a significant portion of the scheelite crystals being reduced to micro particles, which are too fine to be recovered in a traditional gravity separation circuit.
TMR: What would be considered a high-grade tungsten deposit?
KC: The majority of tungsten deposits contain less than 1.5% tungsten trioxide (WO3), and most have grades of only a few tenths of a percentage point. A very high grade would be over 1%.
TMR: A tungsten carbide supplier and high-end toolmaker, has expanded its carbide scrap recycling facility to handle up to 1 million pounds (1 Mlb) scrap carbide per year. Will that impact the global tungsten market?
KC: Recycling is extremely important for meeting global tungsten demand. Current estimates of supply from recycling for the global tungsten market are about 35%, which is significant because 10 years ago it was 10%. Given that the U.S. doesn't have any producing tungsten mines, it's a positive for the country. With an improved outlook for U.S. manufacturing coupled with the shale boom, tungsten consumption is likely going to increase, and recycling will play a role in offseting any supply shortfalls.
TMR: Is that a threat to the investment thesis?
KC: No. The gradual increase in recycling over the past ten years bridged the gap between demand and supply. But at 35%, it's maxed. It's believed in the industry that you can't recycle any more than that from scrap. Now that we're capped at 35%, the spread between demand and supply will widen, if anything.
TMR: Is that why you're bullish on tungsten prices moving forward?
KC: It is a component, but more significant is the belief that no new tungsten projects are coming on-line in the next 12–18 months. Then there is China's role. China accounts for 83% of global production and has considerable influence on tungsten prices. I don't think China is looking to weaken Western producers as it would be more beneficial to maintain healthy prices to fund its businesses, its growth and its move into downstream and higher-margin tungsten products. China can respond quickly to drops in tungsten prices. For example, it was reported in one publication in January that the majority of tungsten miners were unwilling to sell their tungsten concentrate at lower prices because of the bullish outlook. This acts as somewhat of a floor, because the drop in supply would improve pricing.
I think we've seen the floor. I think we're going to see APT prices back up around the $400/Mtu mark, if not by late 2013 then by early to mid-2014.
TMR: How sensitive are companies to fluctuations in the price of APT?
KC: Most companies are very susceptible to APT prices, but virtually every producer works on offtake agreements based on trailing prices, so they are not at the mercy of sharp declines in the spot prices. But companies with lower cash cost will best weather the storm.
TMR: Thanks, Ken.
KC: My pleasure.
Ken Chernin has been an equity research analyst with Jennings Capital since November 2008. Prior to joining Jennings, Chernin was a special situations analyst at an Atlantic Canadian investment dealer, where he focused on Atlantic Canadian oil and gas, utility, food retail and real estate companies. He also worked as a research associate for a Toronto-based brokerage firm and in risk management for a Canadian funds management firm. He has corporate governance experience with the Clarkson Centre for Business Ethics and Board Effectiveness at the University of Toronto and the Canadian Coalition for Good Governance. Chernin holds a Master of Business Administration from the Rotman School of Management at the University of Toronto and a bachelor's degree in communication from Saint Mary's University, Halifax.
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HRUIBAL1
12 years ago
Two mining companies interested in Pasto Bueno of Malaga
The only mine in Peru, Pasto Bueno tungsten which belongs to the company with headquarters in Montreal Malaga in the Ancash Region, received expressions of interest from two Peruvian mining companies seeking to finance the restart of the operations and management of the mine, said a representative of Malaga.
The decision on which of the two will handle good pasture will be taken on March 15, said the representative.
'After the 15 we will know which of these two groups is going to be the new administrator... and would already have an answer who are new investors and when is the new reset program'.
The operations of the mine were suspended last October because of an accident that damaged the processing plant power transmission line, so that Malaga had to seek additional financing in order to restart operations.
In December, the company announced that it had obtained a credit of US$ 2mn, and signed a contract for the sale of by-product copper from the mine, although it still needs financing to resume operations.
Because of the audit process is carried out, the only representative of the company could say told BNamericas that two possible good pasture managers ' are two groups that have a mining very strong... a group is chileno-peruano and another is Peruvian '.
The new administrator will also be in charge of the purchase and sale agreement signed by Malaga.
Invergroups
Posted on Wednesday, March 6, 2013
HRUIBAL1
12 years ago
Dos empresas mineras interesadas en Pasto Bueno de Malaga
La única mina de tungsteno de Perú, Pasto Bueno, que pertenece a la empresa con sede en Montreal Malaga en la Región Ancash, recibió expresiones de interés de dos mineras peruanas que pretenden financiar el reinicio de las operaciones y el manejo de la mina, dijo un representante de Malaga.
La decisión sobre cuál de las dos manejará Pasto Bueno se tomará el 15 de marzo, afirmó el representante.
"Después del 15 vamos a saber cual de estos dos grupos va a ser el nuevo administrador... y tendríamos ya alguna respuesta de quienes son los nuevos inversionistas y cuando es el nuevo programa de reiniciación".
Las operaciones de la mina fueron suspendidas en octubre pasado por causa de un accidente que dañó la línea de transmisión de energía de la planta de procesamiento, por lo que Malaga tuvo que buscar financiamiento adicional a fin de reiniciar las operaciones.
En diciembre, la compañía anunció que había obtenido un crédito de US$2mn y suscribió un contrato por la venta de subproducto cobre de la mina, aunque todavía necesita financiamiento para reanudar las operaciones.
Por causa del proceso de auditoría que se está llevando a cabo, el representante de la empresa solo pudo decir a BNamericas que los dos posibles administradores de Pasto Bueno "son dos grupos que tienen una producción minera muy fuerte... un grupo es chileno-peruano y otro es peruano".
El nuevo administrador también estará a cargo del acuerdo de compraventa suscrito por Malaga.
Invergroups
Publicado el Miércoles, 6 de Marzo del 2013
ZLAZARUS
12 years ago
MONTREAL, QUEBEC--(Marketwire - Dec 20, 2012) - Malaga Inc. ("Malaga" or the "Corporation") (MLG.TO)(MLGAF) is pleased to announce that it has entered into a $2 million loan agreement with a Peruvian bank for a term of 36 months secured by the real estate in Lima. Proceeds in the amount of $1.5M was received today.
Malaga has entered into a contract to sell all the copper by-product it currently has at the Pasto Bueno mine. This transaction should be completed by the end of the current year. As well, Malaga reimbursed the $1.0M CDN note payable plus accrued interest on the maturity date, November 30, 2012, as part of its asset monetization program. Notwithstanding the above, the Corporation requires additional sources of funding before restarting the operations. As such, the Corporation is continuing its efforts to secure a permanent financing via debt or equity.
In addition, the Corporation is also pleased to announce that the repairs to the hydro-electric line and the transmissions poles that were damaged have been completed successfully.
"The repair of the hydro-electric line and the bank financing are the initial steps to get back into operations. The mine plan was reviewed and once we secure the necessary financing, we intend to restart production" said Pierre Monet, President and CEO. "We continue to work closely with our stakeholders to mitigate the consequences of suspending our operations".
the cork
12 years ago
Good to see you again trueheart! I think so, but as always it is hard to tell. I've seen the bid drop into the 7's and in fact picked some up this AM at .077.
I think QE to infinity is putting a bottom into all metals right now. It will take longer for the bottom to be realized in the industrial metals (Iron, copper) than it will for the precious metals.
Even precious is still getting dicked with by the government/bullion banks cartel, as evidenced by the 4 pronged raid on gold and silver today. Note the after hours jam down in the access market LoL! http://www.magyver.com/metals.htm Those are not supply and demand market forces at work LoL!
I'm strategically buying the dips in gold, silver, copper, and of course tungsten.
With QE to infinity, it will take more paper to buy anything of REAL VALUE, and sooner or later, there is just no escaping it.
Tungsten is the hardest metal and will be needed for oil and mineral exploration drill bits, processing mills, and (sadly), weaponry.
I'm also intrigued by the elevated percentages of gold and silver showing up in Malaga's latest exploration results.
I'm reluctant to call an absolute bottom, but these guys are selling all they produce and presumably can fund continued exploration from internal operations. Good to see you again old friend!
the cork
12 years ago
MLGAF Malaga Inc (.091) Tungsten and Copper producer. Owns and operates Pasto Bueno mine north of Lima, in Peru. Malaga's 500 TPD production capacity represents 15% of the tungsten available for sale outside of China. Malaga also produces hydroelectric power at its company owned dam at the Pasto Bueno property.
Exploration drilling indicated the presence of gold, copper and other metals. The Andes are a mineral rich geological area which has world class gold, silver, zinc, tin, and copper mining operations. Majors such as Barrick, Newmont, Rio Tinto, BHP Billiton Xstrata are very active in the Andes, with properties proximal to Malaga's Pasto Bueno Mine.
Website: http://www.malaga.ca/
TSX as MLG: http://tmx.quotemedia.com/quote.php?qm_symbol=MLG
Pinksheets: http://www.otcmarkets.com/stock/MLGAF/quote
IHUB: http://investorshub.advfn.com/boards/board.aspx?board_id=17282
MALAGA ANNOUNCES Q2 2012 RESULTS
http://www.malaga.ca/malaga/en/communiques-description.php?param=161
the cork
12 years ago
Tungsten Market Update (September 13, 2012)
Thursday September 13, 2012, 3:25am PDT
By Michelle Smith - Exclusive to Tungsten Investing News
The tungsten market remains weak in terms of both price and activity.
European tungsten APT prices have been in the range of $390 to $405 since late May, according to Metal-Pages. Chinese tungsten APT export prices are lower, at $355 to $360, but buyers are still not showing any real interest.
On the domestic market, Chinese tungsten APT 88.5 percent min rose this week to $289 to $293 per metric tonne unit, Metal-Pages reported. That increase is believed to be associated with slightly higher concentrate prices. Still, the increases have done little as demand is lacking and there is a resistance to heavy participation in this market. Buyers are only willing to purchase what they need, and traders and miners who are not in need of immediate cash flow are largely holding out for better selling prices.
For September, the Ganzhou Tungsten Association lowered guide pricing. In a month during which a seasonal upswing is generally expected this move appears to have undermined confidence.
Even producers with contracts are feeling the pinch. Malaga (TSX:MLG,OTCQX:MLGAF), whose production is guaranteed to a single customer, reported a 13 percent decline in sales volume and an 11 percent decrease in selling price in its Q2 results.
With reports of manufacturing declines globally, the outlook for tungsten market improvement is unclear.
http://tungsteninvestingnews.com/2836-tungsten-market-update-september-13-2012.html
the cork
12 years ago
Tungsten Miners Not Receiving Location Premium
Thursday September 13, 2012, 3:30am PDT
By Michelle Smith - Exclusive to Tungsten Investing News
As tungsten is rare and market participants commonly express discomfort with the fact that China is its dominant supplier, one might reasonably assume that investors would be flocking to companies with projects elsewhere around the globe. But that rush is simply not occurring. On the contrary, it is common to find tungsten miners whose stock quotes show low volumes and prices in the red.
Take Wolf Minerals (ASX:WLF), which is aiming to redevelop the Hemerdon mine. Located in the UK, Hemerdon is one of the world’s largest tungsten deposits, and Wolf is aiming to produce a shipping container of tungsten per day.
But the company is still in the fundraising stage.
“Raising money takes time at the moment,” said Jeff Harrison, UK operations manager.
Wolf has done fairly well this year with regard to creditors and large investors. After receiving credit approval for £55 million from three major banks, Wolf signed an offtake deal with two customers that includes terms for a £20 million loan.
Since then Wolf has secured another £3.2 million from shareholders Resource Capital Funds and Traxys Projects.
And the company announced that it has ceased to progress the existing credit offer of £55 million as the senior creditors put forth an offer to expand their position to £75 million. Approval is expected in October.
According to Harrison, the company needs all the money — £110 million — in place before it can begin to do anything on the ground.
Given the prospects for the project and the apparent confidence of some parties, it may be surprising that equity investors are not showing similar enthusiasm. The company’s average volume Wednesday was just over 63,000. Its share price year-to-date was down over 14 percent and down over 27 percent over six months.
Woulfe Mining (TSXV:WOF,OTCQX:WFEMF,FWB:OZ4) is working towards opening the Sangdong mine in South Korea in 2013. President and CEO Brian Wesson has said it will be world’s largest producing tungsten mine.
Though Woulfe recently issued statements of disclosure and clarification following a review by the British Columbia Securities Commission, the company still completed a brokered private placement for over $4.23 million and a non-brokered private placement for $1 million.
Woulfe has also announced that it is conducting advanced discussions with banks for a project debt facility of $80 million to $110 million.
“Indications are that the banks are comfortable with the Sangdong project and it is expected that the debt package will be closed about the same time as the strategic deal is finalised,” a company release states.
The strategic deal that Woulfe refers to is one that was announced earlier this year with IMC International Metalworking Companies, part of Warren Buffet’s Berkshire Hathaway. Its terms include IMC receiving a 25 percent interest in Sangdong for C$35 million, which Woulfe will use toward developing the mine and a processing plant. The two companies also plan to establish a joint venture for processing tungsten concentrate into tungsten APT.
IMC is currently conducting due diligence.
Woulfe’s average trading volume is near 300,000 and its stock price is up over 24 percent year-to-date. But over the last six months, the stock is down over 34 percent.
Malaga (TSX:MLG,OTCQX:MLGAF) is a tungsten producer whose Pasto Bueno mine sits in Peru.
The company has an offtake agreement with Global Tungsten & Powders (GTP) for all of its tungsten.
Malaga owns a hydroelectric dam that plays a role in its low-cost strategy. On the company’s to-do list is a plan to build a second hydroelectric dam that will exceed its needs and perhaps afford the opportunity to sell power to the national power grid, providing the company with cash to invest in the mine.
The company also plans to finish building a pilot plant before the end of the year, from which it expects to produce 31,500 metric tonne units from tailings based on a 50 percent recovery rate. That is one of the company’s expansion plans. GTP, which has provided upfront financing in the past, extended an advance on sales to help fund the construction.
Malaga further anticipates that increased production levels in H2 2012 will result in lower cash costs. Yet the company’s stock, which has an average volume of 144,000, is down 25 percent year-to-date and 50 percent over the past six months.
These companies provide examples of a major challenge for producers. Though many have the selling points that market participants claim to be looking for — from locations outside China, to secured purchase agreements — investors are not avidly casting their vote of confidence with monetary support.
One reason for the lack of interest comes down to price. While the tungsten price has improved markedly from the early 90s, when it was trading at an eighth of its current value, Chinese domestic prices have languished in recent months on slowed economic activity, though prices outside China have remained relatively stable. Tungsten, the hardest metal on the planet, is used in toolmaking and to produce alloys. The decline in the global economy is thereby having a negative effect on the demand for the metal and its price.
However, as mining analyst Christopher Ecclestone pointed out in a recent interview with Tungsten Investing News, the price of tungsten has held up even in these trying economic times, and still continues to be in demand for mining and oil and gas exploration.
“If the price can hold up when times are this bad, imagine what it could do if the market was good,” he said. “There is still lots of oil drilling going on, with fracking, and a lot of mining drilling going on. All these things take tungsten.”
In short, for the longer-term, these factors bode well for tungsten miners and explorers.
Securities Disclosure: I, Michelle Smith, do not hold equity interests in any of the companies mentioned in this article.
http://tungsteninvestingnews.com/2829-tungsten-miners-wolf-minerals-woulfe-malaga.html
Hockmir
12 years ago
Malaga Announces Its Q2 Results
Malaga Inc. ("MLG") (TSX:MLG)(OTCQX:MLGAF) reports its financial results today for the second quarter ended June 30, 2012. The management discussion and analysis and unaudited interim financial statements can be found on the Company's website (www.malaga.ca) and on SEDAR (www.sedar.com). All amounts are in US dollars unless otherwise indicated.
Second Quarter and First Six-Month Highlights
-- Net income of $0.2M for Q2-2012, and $0.3M for the six-month period
ended June 30, 2012;
-- Cash flow from operating activities of $1.8M for Q2-2012 and $2.8M for
the six-month period;
-- EBITDA of $0.8M for Q2-2012 and $1.4M for the six-month period;
-- Total sales for the quarter of $5.0M and $8.6M for the six-month period;
-- Copper by-product sales for the quarter of $0.6M and $0.7M for the six-
month period;
-- Advances on sales of $1.4M to fund the construction of a pilot plant to
recover tailings and other programs to increase output;
-- Completion of the first phase of the exploration campaign.
Financial Results
For the second quarter of 2012, Malaga generated an adjusted net income of $0.2M compared to $0.5M in Q2-2011. The decrease is mainly the result of a 13% decrease in sales volume of tungsten (13,600 MTU in Q2-2012 compared to 15,607 in Q2-2011), an 11% decrease in the selling price and a $14 increase in cash cost production per MTU ($203 compared to $189) which results from lower head grade of mineral extracted (0.57% compared to 0.64% in Q2-2011). The rate of production remained constant in Q2 averaging above 350 tpd.
Copper sales were very low in Q1 due to the transportation problems caused by the unusually strong rainfall. In Q2, the Company has been able to recover some of the Q1 loss and the by-product sales amounted to $0.6M, substantially greater than in Q1-2012. The Company will continue to sell the copper by-product for the remainder of the year.
For the second half of the year, Malaga will continue with its development program at the mine, with the construction of a new incline ramp in order to access new ore zones in Huayllapon with higher grades. In addition, the Company has commenced the construction of a pilot plant to recover tungsten in the current tailings pond, which is expected to be completed midway through Q4-2012. Long lead time equipment (pump and screens) have been ordered with estimated delivery by the end of Q3, the detailed engineering and construction plans will be completed during Q3 and the site preparation for the pilot plant has commenced and is ongoing. Assuming a 50% recovery rate, Malaga would produce 31,500 MTU over the next few years from the current tailings pond. With production levels expected to increase in the second half of the year compared to the first, Malaga estimates that the cash cost of production will decrease.
The APT price forecast from Roskill Information Services "Tungsten: Market Outlook to 2016, 10th edition 2011", are between $350/MTU and $440/MTU through 2016 and take into account growing demand and anticipated new sources of supply coming into the market. The current European APT price is between $390/MTU and $415/MTU. The Company believes long-term market fundamentals remain robust with limited availability of tungsten in the market and strong demand for tungsten concentrate.
Continued development at the mine
Malaga continues to accelerate underground development at the Pasto Bueno mine in order to replenish the mined reserves and define new reserves and resources. On a year-to-date basis, 2,136 meters of underground development advances and 678 meters of underground diamond drilling were completed.
Exploration Campaign
The Company completed its initial exploration campaign on the southern part of the property, the area of the mantos. Results from 14 of 17 drill holes in the mantos show the presence of tungsten ore from traces up to 4.04% W03. This mineralized zone is very different from the northern part of the Pasto Bueno property where Malaga is currently extracting and milling tungsten as the mantos are wider and contains scheelite (CaW04) which supports the potential presence of a skarn at depth, which will need to be proven out with further drilling. Drilling also indicated the presence of gold, copper and other metals in that part of the property.
Hydro-electricity
Hidropesac, owned 49% by Malaga, expects to complete the archaeological and environmental studies during Q3-2012. Then, it will apply for a permanent concession and after approval and commercial agreements and financing secured, construction would commence with the objective to start in early 2013.
Key Financial Data:
For the three-month For the six-month
periods ended June 30, periods ended June 30,
(in $'000) 2012 2011 2012 2011
------------------------ ------------------------
------------------------ ------------------------
Sales 4,958 5,329 8,565 10,586
Cost of sales (including
depreciation and
depletion) 3,559 3,192 6,058 6,726
Depreciation and depletion 534 560 1,001 1,275
Income from mining
activities 1,399 2,138 2,507 3,860
General and administrative
expenses 997 1,276 1,844 2,145
Net income 150 1,629 281 2,443
Adjusted net income 148 506 263 1,275
EBITDA 806 1,569 1,377 2,839
Earnings per share basic
and diluted $0.00 $0.01 $0.00 $0.01
Cash cost of production per
MTU $203 $189 $200 $155
Production in MTU 12,613 13,073 24,556 30,566
Pro-Life
13 years ago
Malaga Improves Profitability and Generates a Net Income of $5.6M and Income From Mining Activities of $7.8M in 2011
Date : 03/28/2012 @ 7:00AM
Source : MarketWire
http://ih.advfn.com/p.php?pid=nmona&article=51799240&symbol=MLGAF
2011 Full Year Highlights
-- Net income of $5.6M compared to $1.2M in 2010;
-- Income from mining activities of $7.8M compared to $1.7M in 2010;
-- EBITDA of $6.1M compared to $2.4M in 2010;
-- Cash flow from operations before changes in non-cash working capital items of $5.9M, an increase of $4.6M over 2010;
-- Revenues of $20.9M compared to $14.2M in 2010;
-- A 77% increase in the APT average reference selling price, from $240 in 2010 to $424 in 2011;
-- Increase in reserves of 16%, increasing from 169,427 tonnes ("t") as at January 1, 2010 to 195,880 t as at November 25, 2011 and an increase for the same comparative period of 104% in measured and indicated resources increasing from 398,845 t to 814,097 t and 129% increase in inferred resources (4,168,216 t compared to 1,820,641 t);
-- First exploration campaign of the mantos structures on the southern part of the property and in the Consuzo zone initiated in 2011 and is ongoing with a total of 2,572 meters of diamond drill holes completed;
-- Trading on the OTCQX International began in 2011.
"I am pleased that Malaga has increased its profitability in 2011 and continues to be the lowest cost producer of the publicly traded companies producing tungsten. We plan to increase our production and grow the size of our mine through exploration and development during 2012 in order to fully benefit from this very favorable price environment" said Pierre Monet, President and CEO of Malaga.
Fantastic news!!! For the full article, click the link above...
kiwisteve
13 years ago
Malaga Joins OTCQX-"MLGAF"
MONTREAL, QUEBEC--(Marketwire - Oct. 4, 2011) - Malaga Inc. (TSX:MLG) a leading provider of tungsten and one of the few tungsten providers outside of China, is pleased to announce that it will begin trading Wednesday October 5, 2011 on the OTC market's prestigious tier, OTCQX International. Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.
OTC Markets Group Inc (OTCQX:OTCM) is the financial information and technology services company that provides the world's largest electronic marketplace for broker-dealers to trade over-the-counter ("OTC") stocks.
"The OTCQX platform offers investor-focused companies a winning combination of quality control, transparency, and broader visibility to U.S. investors," said R. Cromwell Coulson, President and Chief Executive Officer of OTC Markets Group. "We are pleased to welcome Malaga to OTCQX."
"We're very pleased to be a part of OTCQX and believe trading on the highest tier of the OTC will provide the United States investment community with access to the increasing value of an important strategic metal commodity," commented Pierre Monet, President of Malaga, Inc. "Tungsten continues to be in high demand but there is limited supply, which is why it has the potential to play an important role in investment portfolios."
Merriman Capital, Inc. will serve as Malaga's Principal American Liaison ("PAL") on OTCQX, responsible for providing guidance on OTCQX requirements and U.S. securities laws. Merriman Capital, Inc. is a wholly owned subsidiary of Merriman Holdings, Inc. (NASDAQ:MERR) and is a member of FINRA and SIPC.
About OTCQX
The OTCQX marketplace is the premier tier of the U.S. Over-the-Counter market. Investor-focused companies use the quality controlled OTCQX platform to offer investors transparent trading, superior information, and easy access through their regulated U.S. broker-dealers. The innovative OTCQX platform offers companies and their shareholders a level of marketplace services formerly available only on a U.S. exchange. For more about OTCQX, visit www.otcqx.com.
About Malaga Inc.
Malaga Inc. owns and operates the Pasto Bueno tungsten mine in Peru and is one of the few publicly-traded producers of tungsten outside of China. Malaga is a low cost producer due to its gravimetric ore concentration process and the availability of hydroelectric power at Pasto Bueno. Malaga's current production capacity accounts for 15% of the tungsten produced outside of China. The Company plans to increase production and explore the property to develop its reserves and resources.
FORWARD-LOOKING STATEMENTS
Certain statements in the foregoing may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors that may cause Malaga's actual results, performance or achievements or industry results to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. The information provided reflects management's current expectations regarding future events and performance as of the date of this news release.
Contact Information
Jean Martineau
Chairman of the Board and Chief Executive Officer
Malaga Inc.
514 288-3224
Pierre Monet
President
Malaga Inc.
514 288-3224
Nicole Blanchard
Corporate Strategy and Investor Relations
Sun International Communications
450 973-6600
http://www.marketwire.com/press-release/malaga-joins-otcqx-mlgaf-tsx-mlg-1569103.htm
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