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Malaga's Future Looks Less Promising

  • Monday, May 27, 2013
  • Source:

  • Keywords:W tungsten
[Fellow]
[Ferro-Alloys.com]The future of Malaga, owner of the Pasto Buenotungsten mine in Peru, is looking less promising. In the first quarter, Malaga posted a net loss of $3.1-million including a non-cash impairment charge of $2.6-million compared to earnings of $5.6-million in the first quarter of 2012. There were no sales of tungsten in the first quarter, whereas in the first quarter of 2012, Malaga had sales of 60,602 mtu. Malagas first-quarter realized sales from byproduct copper at Pasto Bueno were $1.2-million. Care and maintenance was $400,000 of which $200,000 was recorded as depreciation. Malaga has been looking for financing ever since it shut the tungsten mine in October 2012 (Ryans Notes, Oct. 29, 2012, p1). In its quarterly statement, Malaga said that the plant and mine will remain on care and maintenance while it continues to examine all possible alternatives in obtaining financing. The company said it also is considering the sale of a portion or all of its assets.   
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