The latest research note from H&P highlights steady progress at Tungsten West as the company moves closer to restarting production at its flagship Hemerdon mine in Devon. With funding advancing and market conditions strengthening, the broker outlines a constructive outlook and sees notable upside in the shares.
At the heart of the update is confirmation that development activities remain firmly on track. As stated in the note, “Tungsten West (LON:TUN, “TW”) has released an activities update for Q1’26 at the Hemerdon tungsten and tin mine in Devon, with work progressing toward a staged restart.” This reflects ongoing operational momentum as the company executes its restart strategy.
Hemerdon restart progressing towards production
The Hemerdon project is advancing through a phased restart, with initial production targeted in the near term. The company is aiming to begin fines gravity processing in the third quarter of 2026, followed by full commissioning of the plant in early 2027.
Work on site is already well underway. Refurbishment of the Mineral Processing Facility is progressing, alongside earthworks to support key infrastructure. The appointment of contractors and the transition to a self-perform mining model mark important operational milestones.
The addition of experienced personnel also strengthens execution capability. The appointment of a new Chief Operating Officer, alongside further hires across mining, processing and ESG functions, underlines a focus on building operational depth ahead of production.
Funding package nearing completion
From a financial perspective, Tungsten West has made significant strides. A £44m equity raise completed in March provides capital for early works, working capital and balance sheet support. In parallel, the company has secured a £22.3m equipment finance facility as it builds out its mining fleet.
Attention now turns to the larger debt package. The note highlights that funding discussions are in their final stages, stating that the “debt package for up to US$85m is now in the final stage of due diligence.” The outcome of this process is expected shortly, with contingency funding options already identified if required.
Supportive tungsten market dynamics
The broader market backdrop adds further support to the investment case. Tungsten prices have risen sharply during 2026, driven by tightening supply and increasing demand linked to defence and strategic applications.
Notably, ammonium para-tungstate prices have reached record levels, significantly above previous feasibility assumptions. This pricing strength has the potential to enhance project economics as Hemerdon moves towards production.
Valuation highlights
- Target price of 62.2p per share
- Implies approximately 70% upside from current levels
- Estimated project NPV of £936m
- Strong commodity pricing assumptions underpin valuation
H&P also points to relatively low forward valuation multiples compared with peers, particularly given the company’s position as a near-term producer of a critical metal within the UK.
In Summary
The latest research note presents a positive and measured view of Tungsten West’s progress. Operational milestones are being met, funding is advancing towards completion, and market conditions remain favourable. With first production expected within the next year and a clear pathway to full operations, the company appears well positioned to deliver on its strategy. The broker’s valuation, indicating meaningful upside, reflects confidence in both execution and the supportive tungsten market environment.
