Almonty Flips to Positive Cash Flow and Hires New CFO, but Profit-Taking Bites After Parabolic Run

Tungsten miner Almonty posts first positive operating cash flow, but stock falls 4.68% as net loss persists due to non-cash charges. New CFO appointed.

The tungsten miner Almonty has hit a milestone it has long chased — positive operating cash flow — yet the market response has been decidedly muted. Shares slid 4.68% to C$24.02 on Friday, capping a weekly decline of 10.64%. For anyone tracking the stock’s 99.67% year-to-date surge, the pullback looks more like a natural consolidation after an aggressive re-rating than a vote of no confidence.

Revenue for the March quarter came in at US$25.4 million, a 221% jump from a year earlier, propelled by record tungsten prices and steady output from the Panasqueira mine in Portugal. By early May, average APT tungsten quotes had reached around US$3,140 per metric tonne unit, having more than tripled from the US$900 level seen in Rotterdam just a few months ago. For a producer with ongoing operations, such a pricing environment feeds directly into the income statement — and this quarter it drove a first-ever positive operating cash flow of US$9.7 million, reversing a negative US$4.4 million in the prior year. Adjusted EBITDA also turned positive at US$6.1 million.

Despite the top-line progress, the net result remained in the red at US$5.3 million. The culprit was a US$8.4 million non-cash charge from revaluations tied to derivative liabilities and warrants. Management is keen to stress that these items don’t affect liquidity or day-to-day operations, but they do obscure the underlying improvement in the income statement. At quarter-end, the company held C$259.9 million in cash and C$169.5 million in working capital, giving it far more financial flexibility than in past development stages.

A New Finance Chief Takes Charge

Adding a layer of institutional credibility to the growth story, Almonty announced the appointment of Jorge Beristain as chief financial officer effective June 1. Beristain joins from Ryerson Holding, a publicly traded metals service center where he helped boost market capitalization. Earlier in his career, he headed metals and mining equity research for the Americas at Deutsche Bank Securities. He replaces Brian Fox, who departed immediately; development chief Guillaume de Lamaziere will serve as interim CFO until Beristain’s start date.

The management change comes at a critical juncture. Almonty is pivoting hard toward western supply chains, relocating its corporate headquarters from Toronto to Dillon, Montana — a move that positions it closer to defense and industrial customers seeking alternatives to Chinese tungsten. Complementing that strategy is the ramp-up of the Sangdong mine in South Korea, where the first expansion phase is now complete and commercial production is the next target. On the US side, the Gentung project in Montana will further round out the company’s American footprint.

Analysts Raise Targets Even as the Stock Slips

Several sell-side firms upgraded their outlooks following the results. Alliance Global lifted its price target to C$26.25 from C$19.25, while Bank of America nudged its target to C$23. D.A. Davidson maintained a buy recommendation. Yet the share price remains 25.10% below the 52-week high of C$32.07 and has slipped beneath the 50-day moving average, though it still holds well above the 200-day trend — a classic technical pattern for a stock that has rallied more than 548% over the past twelve months and is now digesting those gains.

The next major catalyst for Almonty is the commercial ramp-up at Sangdong. If the mine can achieve steady production volumes — eventually targeting 1.2 million tonnes per year in its later phase — and tungsten prices stay elevated, the positive cash flow should broaden. Investors will get a deeper look at the US expansion story on May 20, when management presents at the IIF investor conference. For now, the market is demanding proof that operational momentum can translate into sustained profitability before it rewards the stock with fresh highs.