Weak prices put Cantung in red at 6-month mark

Depressed tungsten prices continue to hound Canada Tungsten Mining C orp. which reports a net loss of $5.6 million, or 75 cents per share at this year’s half way mark.

This compares to a net loss of $2.7 million or 48 cents per share for the six months ended June 30, 1985.

President W. D. Lenton says the most important factor in weak tungsten prices is sales by China at very low prices. These sales appear to come from several Chinese agencies and to be poorly co-ordinated, he says. “For the time being, tungsten prices have been driven to levels at which we believe no western producer can be profitable,” he adds.

The average Metal Bulletin scheelite quotation was $52(US) per standard ton unit (STU) in the latest second quarter period compared to $69 per STU in the second quarter of 1985.

Consequent to the decline in market prices, Mr Lenton says the company’s mining operation at Tungsten, in the Northwest Territories which has been closed since May 20 due to a strike, will remain closed until further notice. Sales commitments will be met from inventories.

During the second quarter of this year, the company completed transactions initated in the previous quarter under which it acquired substantially all of the tungsten assets of Amax Inc. The special warrants that were issued in March were converted to common shares of the company. Mr Lenton says the expanded company has excellent long-term potential and is conservatively financed. The company’s cash position at the end of the 6-month period stood at $12.2 million.