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Western Star Resources ($WSR | $WSRIF): Drilling Toward North American Tungsten Supply

Nordic Funds Sep 18, 2026 21:06

Summary

The guest argues tungsten's supply squeeze — China controls roughly 85% of output — makes past-producing North American projects strategically valuable.

Western Star assembled three past-producing tungsten projects — Eagle Point in New Mexico, Roland and White Star in Nevada — with roads, power, and water.

Historic grades stand out: Roland produced at 3.38% tungsten, roughly 12 times the national average, and new channel samples run two to four percent.

Plans call for drilling Eagle Point this year, expanding a non-compliant historic resource toward a NI 43-101 (Canadian-compliant) estimate of about two million tons.

With a roughly $30 million market cap, $7 million raised this year, and the CEO as top shareholder, management argues the shares are undervalued.

Mr. Blake Morgan's takeaways

  • Top takeaway Blake Morgan argues China's tungsten export restrictions may reflect a real supply shortage inside China rather than just a tariff dispute, with China holding around 83% of the market, demand rising each year, and recycling prices already up sharply.
  • He points to the US ban on tungsten from China, Russia, and North Korea for military and aerospace use taking effect in January 2027 as further tightening supply, and argues North American past producers are the practical answer to the supply gap.
  • He calls Western Star extremely undervalued, citing tungsten peers with market caps from $100 million to half a billion dollars against Western Star's roughly $30 million, and says $300 million would be ten times from here.
  • His stated long-term path is either a buyout by a larger company once a 43-101 resource is built, or moving Eagle Point into a small-scale mine with a roughly 10-year life quickly with government help — which he frames as a now plan, not a five- or ten-year one.
  • He stresses personal conviction, saying he is the company's largest shareholder, buys shares regularly in the market and in private placements, and has a few million dollars of his own money invested.