What's Happening?
Eurobattery Minerals AB, a Swedish mining company, has announced plans to commence tungsten production in Spain by the first quarter of 2027. The company has received a Buy recommendation from Mangold Fondkommission, with a 12-month target price of SEK
0.45 per share, indicating a potential upside of over 130% from current trading levels. The San Juan tungsten project in Spain is one of the company's key initiatives, with all necessary permits secured and financing in place. The project is expected to produce 145,000 tonnes of tungsten trioxide at a grade of 1.3%, one of the highest grades for near-production tungsten projects in Europe. Eurobattery Minerals has also signed a letter of intent for concentrate sales with Wolfram Bergbau und Hütten AG, ensuring buyers are available from the start of production.
Why It's Important?
The development of the San Juan tungsten project is significant for the European mining sector, as it aims to enhance the continent's self-sufficiency in critical raw materials. Tungsten is a vital component in various industrial applications, and securing a stable supply is crucial for European industries. The project's success could reduce dependency on imports and contribute to the EU's strategic goals under the Critical Raw Materials Act. Additionally, the project's high-grade resource and secured financing position Eurobattery Minerals as a key player in the European mining landscape, potentially attracting further investment and boosting regional economic growth.
What's Next?
Eurobattery Minerals is on track to start production in early 2027, with ongoing engineering and metallurgical test work. The company has applied for Strategic Project status under the EU Critical Raw Materials Act, with a decision expected in June 2026. This status could provide additional support and recognition for the project. As the company progresses, it will likely focus on increasing its visibility in capital markets and securing further partnerships to ensure the project's long-term success.
