Tungsten West (LON:TUN) Stock Jumps 0.6% - Still a Buy?

Key Points

• Tungsten West shares rose 0.6% to GBX 47 on sharply increased trading volume, with 9.04 million shares changing hands versus an average of about 4.08 million.
• The company signed an eight-year, approximately £1.4 billion offtake agreement with Elmet Technologies for tungsten concentrate from its Hemerdon mine, improving revenue visibility and supporting its strategic position in the critical-tungsten supply chain.
• Execution and financing risks remain significant: Hemerdon must still be developed and brought into production, while Tungsten West reports negative earnings and profitability metrics; a planned founder options exercise may provide funding but could dilute existing shareholders.

Tungsten West PLC (LON:TUN - Get Free Report) shares traded up 0.6% during trading on Thursday. The stock traded as high as GBX 47 and last traded at GBX 47. 9,040,334 shares changed hands during trading, an increase of 122% from the average session volume of 4,078,775 shares. The stock had previously closed at GBX 46.70.

Tungsten West News Summary

Here are the key news stories impacting Tungsten West this week:

• Positive Sentiment: Eight-year offtake agreement provides commercial validation. Tungsten West and US manufacturer Elmet Technologies have signed an agreement covering tungsten concentrate production from the Hemerdon mine. The deal has been reported at approximately £1.4 billion in value, or about $1.8 billion, giving Tungsten West a potential long-term customer and greater revenue visibility once production begins. Tungsten West, Elmet ink $1.8 billion offtake deal for Hemerdon mine
• Positive Sentiment: The agreement strengthens Tungsten West’s strategic position. Securing a US manufacturing partner could support project financing, future development of Hemerdon and the company’s role in the critical-tungsten supply chain. The sizeable contract is the main reason the stock has attracted increased investor interest. Tungsten West Signs Eight-Year Hemerdon Offtake Agreement With Elmet Technologies
• Positive Sentiment: Founder options exercise is expected to raise funds. Tungsten West said its founder will exercise options, providing fresh capital for the business. The additional funding may improve liquidity and help advance Hemerdon-related activities, although the precise amount and use of proceeds are important details for investors. Tungsten West to Raise Funds via Founder Options Exercise
• Neutral Sentiment: Execution and financing remain key risks. The headline contract value represents potential supply over eight years rather than immediate revenue. Investors will still need to monitor mine development, production ramp-up, funding requirements, permitting and whether the agreement’s commercial conditions are fulfilled. An options exercise may also increase the number of shares outstanding.

Tungsten West Stock Up 0.6%

The company has a debt-to-equity ratio of 3.17, a quick ratio of 7.04 and a current ratio of 8.01. The company has a market cap of £754.23 million, a price-to-earnings ratio of -3.92 and a beta of 0.28. The business has a 50-day simple moving average of GBX 43.22 and a 200-day simple moving average of GBX 38.85.

Tungsten West (LON:TUN - Get Free Report) last announced its quarterly earnings data on Thursday, September 3rd. The company reported GBX (12) EPS for the quarter. Tungsten West had a negative return on equity of 2,022.63% and a negative net margin of 29,165.70%.

Tungsten West Company Profile

Tungsten West Plc is a UK based company focussed on recommencing production at the Hemerdon tungsten and tin mine in Devon, England. The Hemerdon mine is the world's third largest Tungsten resource. The mine has had over £170m spent on it via the previous operator, with first production expected in 2022 and a mine life of 18.5 years. The Company is focused on rebuilding and restarting the mine to supply two critically important strategic minerals in tungsten and tin both domestically and globally.

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