Business
Interim Results
Interim Results.
About this update from Gunsynd Plc
[{"type":"text","content":"\n \nRNS Number : 6599V Evocutis PLC 19 April 2016 \n\n \n19 April 2016\nEvocutis plc\n(\"Evocutis\", or \"the Company\")\nInterim Results for the six months ended 31 January 2016\nChairman's Statement\nThe Board presents the interim results for the six months ended 31 January 2016.\nReview of Investments\nInvestment in Brazil Tungsten Holdings Limited (\"BTHL\"):The Company maintains its 10% equity interest in BTHL acquired in February 2015. \nBTHL has advised that despite a difficult tungsten price environment, it has continued to focus on the development of its flagship Bodó mine in the Currais Novos region of Rio Grande do Norte state, Brazil, and continues with its required capital programme for mine development and mill construction with the aim of significantly increasing tungsten production during 2016.\nIt is expected that BTHL will now be on track to reach its Phase I target of 150 tonnes per day of ROM ore from underground by June 2016. This will place BTHL in a cash positive position even with the current difficult market for tungsten prices and allow it to benefit fully if tungsten prices recover. There have already been signs of improvement in the concentrate market with the price received by the BTHL rising by over U$20/Mtu (17%) since the beginning of the year. The strong fall in the Brazilian real versus the USD has helped significantly as almost all costs are in reals and receipts are in USD.\nSince October last year, mining of ore from underground has been suspended and the focus has been entirely on development of the main shafts. A total of 92m of underground development was completed along with the associated infrastructure and BTHL is now preparing to begin first production from the Central decline. Development has been slow as the rock strength in some areas is poor and needs additional support. These areas coincide with the highest grade ore and assays taken have returned over 1.5% WO3 content. The typical grade for an underground tungsten mine is in the order of 0.5% and this grade is the reason that the Bodó mine can be cash positive even at the current low tungsten prices.\nThe treatment plant has been working on reduced hours and exclusively treating reject material stockpiled on site. Since October 2015 the plant has processed up to ear...