This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Almonty's CEO Talks Tungsten And The Eurozone Crisis

Almonty's CEO Talks Tungsten and the Eurozone CrisisSpain is home to Almonty Industries' (TSXV:AII) Los Santos project, one of the only producing tungsten mines in the western world. Spain is also now center stage in the Eurozone crisis. The world is waiting to see whether its government will request a bailout, which some insist is necessary to help the country lower its borrowing costs to sustainable rates. Inquiring minds may wonder what impact conditions in Europe are having on the business of producing and selling a rare metal like tungsten. Almonty's CEO, Lewis Black, provided Tungsten Investing News with some insight.

While it operates in Europe, Almonty is not directly exposed to market conditions there. The company exports all of its tungsten to North America, a market that Black says has held up well. Still, the company does not exist in a bubble and therefore has not been able to completely insulate itself against the region's crisis.

“No one wants to carry [tungsten] inventory given the uncertainty in Europe,” Black said, outlining the first effect the company has noted. “Consumers only buy what they need and they are working down the inventories that they have. Understand that this is not based on fundamentals, but purely on uncertainty.”

Some may find that surprising as many consumers have been pushing to secure access to supply outside of China.

I will probably get shot for saying this, but there is very little partnership between consumers and producers in the tungsten business,” said Black.

“Consumers' primary concern is to keep their costs low, and they operate with no real regard for what will happen to the producers. Consumers feel that they can always get a bit [of tungsten] here and bit there and for years they have been. Now, I really don't understand it because the quantity and quality of that supply is dwindling, but this is how they operate. So the producers have a tough time, no doubt about it.”

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,076.27 +64.33 0.36%
S&P 500 2,114.07 +4.47 0.21%
NASDAQ 5,099.2310 +22.7070 0.45%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs