Almonty Industries: A 52-Week High Meets a Critical Production Timeline

Almonty Industries stock hits 52-week high as a severe tungsten supply crunch, driven by semiconductor and defense needs, coincides with its new high-grade Korean mine starting production.

Shares of Almonty Industries surged to a precise 52-week high of C$30.66 on Thursday, capping a staggering rally of approximately 155% since the start of the year. This explosive move comes as the company navigates a pivotal operational phase against a backdrop of severe supply constraints for a critical industrial metal.

The catalyst is a looming shortage of tungsten, a metal essential for semiconductor manufacturing and defense applications. Japanese suppliers, including Kanto Denka Kogyo and Central Glass, which cover about a quarter of the global market for tungsten hexafluoride (WF?) gas, warn their inventories may only last until the end of June. With China, Russia, and North Korea controlling roughly 95% of global supply, Western manufacturers are scrambling for alternatives. Major chipmakers like Samsung are reportedly slashing the typical 18-month qualification process for new materials.

Almonty’s timing appears impeccable. The company officially commenced operations at its Sangdong mine in South Korea in March. The facility is already processing around 640,000 tonnes of ore annually, with commercial production from the first phase targeted for Q2 2026. Sangdong’s ore body boasts an average grade of 0.51% tungsten trioxide—about triple the global average—with an annual target of 2,300 tonnes of tungsten concentrate.

This supply crunch is sending prices soaring. Ammonium paratungstate (APT) has reached $2,250 per metric tonne unit (MTU), while tungsten metal in Rotterdam has skyrocketed from about $900 at the start of the year to $3,190. Almonty gains an additional edge as its tungsten products are exempt from recent US tariff hikes.

Financially, the company is well-positioned to execute its plans. It recently bolstered its treasury through a public offering that raised $90 million, followed by a subsequent financing round securing an additional $129 million. These funds are earmarked for primary development projects. The stock’s annualized volatility of 104% reflects intense interest from both institutional and private investors.

Institutional money is flowing in. The number of invested funds jumped by over 55% last quarter. Van Eck Associates now holds a stake worth approximately $99 million, and new players like Encompass Capital Advisors are entering with double-digit million-dollar investments. Analysts from firms such as J.P. Morgan and Bank of America point to a structural imbalance in industrial metal supply and demand, creating a favorable macro environment for advanced mining projects.

Beyond semiconductors, a defense sector deadline looms. Starting January 1, 2027, US defense contractors will be barred from sourcing tungsten from China. Almonty has strategically prepared by appointing former high-ranking US military officials to its board. The company is also advancing its Gentung Browns Lake project in Montana, slated to come online later this year as the first domestic US tungsten production in over a decade, aligning with federal efforts to subsidize critical mineral supply chains.

Internally, a significant corporate action is pending. Shareholders have approved a reverse stock split, which management must implement by April 30, 2026. This consolidation could occur at a ratio of up to five-to-one, drastically reducing the share count and optically raising the stock price.

The information flow for investors is set to intensify. A formal operational update is expected as soon as next week, followed by quarterly results in May that will provide the first concrete production data from Sangdong’s ramp-up. The annual general meeting on June 8 will feature details on a second expansion phase designed to massively increase capacity. For the remainder of the year, the company’s focus remains fixed on executing the first two production phases in Sangdong and developing its US assets.