Almonty Industries: A Strategic Producer Emerges in a Tight Tungsten Market

Almonty Industries resumes production at South Korea's Sangdong tungsten mine, targeting a capacity of 460,000 MTU by 2027 as prices soar over 500%.

After three decades of dormancy, operational activity has resumed at the Sangdong mine in South Korea. Almonty Industries officially commenced tungsten production over the weekend, launching its flagship asset into an exceptionally favorable commodity environment. With global supply constraints and soaring raw material prices, the company is establishing itself as a crucial non-Chinese supplier of this critical metal.

Strategic Timing and Ambitious Expansion

The restart coincides with a period of severe market tightness. Export restrictions from major producing nations have propelled tungsten prices, which have surged by more than 500% over the past twelve months to approximately $2,500 per metric tonne unit (MTU). To capitalize fully on this pricing strength, Almonty is not wasting time. The company has already outlined a second-phase expansion, aiming to double production capacity to 460,000 MTU by 2027.

This operational progress is being reflected in the company's share performance. Closing at A$21.15 on Friday, the equity has advanced more than 60% since the start of the year.

Analyst Revisions and Price Targets

The transition from development to active mining naturally involves initial ramp-up costs. Accordingly, Diamond Equity Research adjusted its near-term model, revising its earnings per share (EPS) estimate for the first quarter of 2026 down to zero. However, the firm significantly raised its full-year 2026 forecast, lifting the EPS projection from $0.23 to $0.45. For 2027, analysts are now modeling a profit of $1.03 per share.

Other investment banks have also issued concrete valuations following the production milestone:
- DA Davidson: $25.00 price target
- B. Riley Financial: $23.00 price target
- Oppenheimer: $19.00 price target

A Pivotal Geographic Position

Sangdong's location in South Korea provides Almonty with direct access to key Asian technology hubs. These industrial centers have an essential, ongoing demand for tungsten in semiconductor manufacturing and battery production. As a major supplier of this critical raw material from outside China, the company's fundamental valuation going forward will largely depend on management's ability to execute its plan and successfully double output by the 2027 target.