Tungsten West, the company restarting production at the Hemerdon tungsten and tin mine in Devon, reported an operating loss of £7.9 million for the year ended 31 March, down from a £19 million loss the prior year.
Cash and cash equivalents jumped to £25.5 million at year-end, from just £0.02 million a year earlier, driven largely by a £43 million gross equity raise completed in February that funded the start of construction.
The company recorded its first tungsten concentrate sales of £0.6 million in December, from re-commissioning the pre-existing Mineral Processing Facility.
Loss before tax widened sharply to £175.6 million from £25 million, reflecting a £167.3 million non-cash finance charge tied to the fair value movement on convertible loan notes converted into equity in December and February, driven by the appreciation in the company's share price relative to the conversion price.
"This is a non-cash accounting adjustment only and has had no impact whatsoever on the Company's cash position, liquidity or ability to execute its business plan," said chief executive Jeff Court.
Since the year-end, Tungsten West secured up to £71 million from the UK Government's National Wealth Fund, comprising a £36 million equity raise and a £25 million loan facility, which the company said leaves it fully funded through to full production.
The company has commenced operation of its fines gravity circuit and produced initial tungsten and tin concentrate, remaining on track to complete restart construction by the end of the first quarter of 2027.
