Tungsten Mining (TGN) Investor Update summary

Market context and tungsten outlook

• Tungsten prices have reached all-time highs, rising from $200/MTU in 2020 to $689/MTU, driven by supply deficits and China's export restrictions, with the market expected to grow to US$11.6bn by 2033 at a 7.8% CAGR.

• Global supply is constrained, with China and Russia controlling 90% of output and few new projects expected to come online soon.

Project scale, resource details, and significance

• Mt Mulgine is one of the largest tungsten deposits outside China, located in Western Australia, containing tungsten, molybdenum, copper, gold, and silver, with over 110,000m of drilling completed.

• The total resource inventory includes 328 Mt at 0.11% WO3, 217 ppm Mo, and significant gold, silver, and copper by-products, with 75% in the measured and indicated category.

• The pit remains open for further exploration, and the project is considered globally significant.

Scoping study financials and development strategy

• At 6 Mtpa: NPV (8% pre-tax) A$1.0–1.4B, IRR 30–45%, capex A$358–495M, 23-year mine life, payback 2.2–3.8 years, and annual post-tax cashflow A$103–128M.

• At 15 Mtpa: NPV (8% pre-tax) A$1.7–2.3B, IRR 42–62%, capex A$631–868M, 10-year mine life, payback 1.6–2.2 years, and annual post-tax cashflow A$275–340M.

• Revised financials show post-tax NPV (8%) ranges from A$627M to A$1.53B at base prices and A$1.59B to A$2.99B at spot prices, with payback as low as 1 year for the 15 Mtpa case at spot prices.

• Projected capital expenditure for Stage 1 ranges from A$358M to A$868M depending on throughput and scenario.