Almonty Industries: A Critical Miner Transitions from Developer to Producer

Almonty CA0203981034

A significant strategic shift is now underway at Almonty Industries. The company has officially moved from a project development phase into active production, marking a pivotal moment in its decade-long journey. This transition is centered on the commencement of commercial tungsten ore mining at its flagship Sangdong operation in South Korea in mid-December. The core investment narrative now hinges on how effectively this operational milestone capitalizes on the current geopolitical landscape.

The timing of Sangdong’s production start is particularly advantageous. Western nations are actively seeking to diversify supply chains and reduce reliance on Chinese-sourced critical minerals. China currently dominates the market, controlling over 80% of global tungsten production. Legislation coming into effect from 2027 will prohibit the U.S. Department of Defense from procuring tungsten sourced from China, Russia, Iran, and North Korea.

Almonty is positioning itself as a future supplier for a range of high-tech and defense applications, including:
* Defense systems and armor-piercing munitions
* Semiconductor manufacturing equipment
* Hardware components for artificial intelligence
* Aerospace technologies

Tungsten has been classified as a critical mineral in the United States since 2018, underscoring its strategic importance.

Sangdong Mine: Operational Launch and Scale

The main construction phase concluded when the first truckload of ore was delivered to the run-of-mine stockpile at the Sangdong site in Yeongwol County (Gangwon Province) on December 16. The operation is now processing ore through multi-stage circuits involving crushing, milling, and flotation.

CEO Lewis Black has described this as a strategic turning point for the company’s goal of reshaping the global tungsten supply chain. Key metrics for Sangdong include:
* Reserves: 7.9 million tonnes grading 0.47% tungsten trioxide (WO₃)
* Contained Metal: Approximately 3.7 million metric tonne units (MTUs) of tungsten
* Production Scale: At full capacity, the mine is projected to supply over 80% of the tungsten produced outside of China.

The Integrated "Korean Trinity" Strategy

Almonty’s plan for Sangdong extends beyond simple mining. The company is implementing a three-pillar, integrated strategy:
1. Sustained mining from the primary tungsten deposit.
2. Construction of an on-site tungsten trioxide processing plant.
3. Development of an adjacent molybdenum deposit.

The overarching objective is to establish South Korea as a central hub for the entire tungsten value chain—from extraction and refining to downstream processing—thereby reducing dependence on imported Chinese tungsten oxide.

Financial Foundation and Corporate Developments

To fund its growth plans, Almonty completed a substantially upsized public offering in December. The company issued 20.7 million shares at US$6.25 per share, raising gross proceeds of approximately US$129 million. BofA Securities acted as the lead bookrunner. Management has stated that this capital fully funds planned exploration and expansion programs, with no further equity raises currently anticipated.

Other recent corporate developments include:
* New COO: Retired Brigadier General Steven L. Allen joined as Chief Operating Officer on December 1.
* U.S. Expansion: The acquisition of the Gentung Browns Lake tungsten project in Montana was finalized.
* Exchange Recognition: The company was included in the Toronto Stock Exchange's TSX30 ranking in September 2025.

Market Sentiment and Institutional Interest

Analyst coverage remains favorable. On December 19, DA Davidson reaffirmed a "Buy" rating with a US$12.00 price target. Oppenheimer maintains an "Outperform" rating and raised its price target from US$7.00 to US$12.00 in October. According to MarketBeat data, this results in a consensus "Moderate Buy" rating with an average price target of US$10.17.

Institutional investors established new positions in the third quarter of 2025, with notable entries including:
* Telemark Asset Management LLC (~US$7.84 million)
* Alyeska Investment Group L.P. (~US$7.84 million)
* ArrowMark Colorado Holdings LLC (~US$7.81 million)
* Millennium Management LLC (~US$5.95 million)

Forthcoming Catalysts

Near-term focus will be on the ramp-up and stabilization of production at Sangdong. Additional potential catalysts for the share price include:
* Results from the molybdenum drilling program initiated in September.
* Progress on the construction of the on-site tungsten trioxide plant.
* Updates regarding the newly acquired Montana project.

The fourth quarter 2025 financial results are expected to provide the next comprehensive update on operational progress and the production ramp-up.