GWR Group (ASX: GWR) is assessing a major acquisition in Western Australia, as the company looks to capitalise on its strong financial position and expand its portfolio of mineral projects.
The company has been evaluating multiple global opportunities, with a focus on advanced-stage projects offering existing resources, near-term cash flow potential, and exploration upside. A non-binding indicative offer has been lodged for a significant Western Australian transaction, and due diligence is now underway.
Chairman Gary Lyons said GWR remained committed to securing assets with strong fundamentals.
“We are committed to identifying and executing strategic opportunities that enhance shareholder value,” Lyons said. “With our strong financial position, we remain well-placed to capitalise on market opportunities across multiple commodities.”
Cash-heavy, but trading below value
Despite its cash and investments totalling $53.6 million as of December 2024, GWR’s market capitalisation of $27.6 million leaves it trading below its net asset value. The company holds no debt, with a large portion of its investment portfolio tied up in ASX-listed securities.
Its largest holding is in Tungsten Mining NL (ASX: TGN), where GWR owns 177.5 million shares valued at $16.15 million. The company also holds 30.8 million shares in EMetals Limited (ASX: EMT), worth $123,200.
China’s tungsten squeeze fuels investment outlook
GWR has reaffirmed its confidence in tungsten, following China’s recent decision to impose export controls on the metal, a move that has already driven speculation of tightening global supply and rising prices.
China controls over 80% of the world’s tungsten production, and the restrictions are expected to push up prices as industries scramble to secure supplies.
The company’s investment in Tungsten Mining NL could benefit from these developments. The miner’s Mt Mulgine Project holds an estimated 219 million tonnes at 0.11% WO₃, making it one of Australia’s largest tungsten assets.
Magnesite project advances amid industry interest
GWR also continues to develop its Prospect Ridge Magnesite Project in Tasmania, where it holds a 70% stake. A phase two drilling program has been completed, with results pending.
The company has received expressions of interest from leading refractory manufacturers, indicating potential demand for high-grade magnesite from the project.
Metallurgical studies, in collaboration with the University of Tasmania, are also underway to refine processing techniques and remove impurities such as silica.
