Tungsten West (LON: TUN) shares have dropped 12% as Mark Thompson has left the company. This is one of those strange events that we'd all like to see explained a little more. For Thompson was one of the founders of the company and also Executive Vice Chairman - that “executive” there meaning he also worked within the company, not just sat on the board and monitored. When such people leave a company there's usually either a process, one of finding a replacement, easing them in, giving the guy a jolly good send off and all that - or there's some specific and usually not good reason for an immediate departure.
As so often it's necessary to read corporate announcements in the right language: “Tungsten West today announces that Mark Thompson has stepped down from the board of directors, where he was Executive Vice Chairman, and as an employee of the Company with immediate effect. David Cather, Non-Executive Chairman of Tungsten West, commented: "Mark was one of the founding directors of Tungsten West and on behalf of the Board and everyone at Tungsten West, I would like to thank Mark for his contribution to the Company and wish him all the best in his next endeavour."”
That's it, that's all we get told. And reading that in the right language there's something much more than that going on. That is, this is unlikely to be Thompson just deciding to leave.
Tungsten West share price from London Stock Exchange
Of course Tungsten West has a problem anyway. Their intended mine at Hemerdon undoubtedly contains both tin and tungsten. Cornwall never was mined out, it's just that alternative and cheaper deposits were opened up elsewhere in the world. Which is a distinct possibility here too. That current world prices - especially for tin - just aren't sufficient to justify re-opening a Cornish mine. Would be a pity if that were so but it's still entirely possible. We're seeing very weak stock prices in other London listed shares like First Tin as well - they're trying to open in Europe's other historic tin district, the Krusny Hory.
So there's that uphill battle to deal with. We might hold out hopes that the Myanmar ban on tin mining, or changes in Indonesia's regulatory approach, might boost global tin prices. But that's s weak thread to hang a mine opening upon.
The specific movement today though, that's about the speed with which Thompson has left. Until we get an explanation of that expect a fragile share price at Tungsten West.