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Trigg Minerals (ASX:TMG) has unveiled a strategic move into the tungsten market, tracking Almonty Industries’ meteoric gains, but market reaction has been perhaps surprisingly mixed on Thursday.
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While the company, by all counts, picked up a potentially profitable project for rather decent pricing – US$225,000 – it seems that, alongside a wider broad-market Thursday pullback, some traders have decided to sit back and wait to see what Trigg does with the new project.
Located in Tennessee, its new Tennessee Mountain Tungsten Project (TMTP), located in Nevada, was once of enough interest to the U.S. government that it commissioned a U.S. Defence report looking at mineral resource.
A historical read of 708Ktns exists on paper; clearly, this is what Trigg is willing to spend CapEx on finding out. It’s possible that right now, its biggest detriment to further stock price momentum is a perception familiar among microcap watchers that one company oughtn’t spread itself too thin across multiple projects.
Of course, then there’s Almonty Industries, a North American tungsten player whose ASX shares are up close to +500% YoY (as of today) on the back of a global leading U.S. economy completely bereft of ways to make tungsten.
Like antimony, also among the hardest metals on earth, tungsten is known for its durability and use in defence and aerospace applications. “Tungsten, due to its exceptional density, is widely used in military-grade penetrators and kinetic energy weapons,” the company wrote on Thursday.
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With just shy of A$16 million in cash ready to deploy, Trigg reassured shareholders on Thursday that, for now, it sits poised to kick off works across its antimony portfolio and at the TMTP.
TMG last traded at 9.5cps.
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Disclaimer: HotCopper had a commercial relationship with Trigg at the time this article was crafted and published.
