Almonty Industries: A Wolfram Producer at the Center of a Supply Storm

Almonty Industries surges as a tungsten supplier amid a critical semiconductor gas shortage and a looming US ban on Chinese tungsten for defense, with its Sangdong mine set for 2026 production.

A critical shortage in the semiconductor supply chain is creating a powerful tailwind for Almonty Industries. Japanese suppliers are warning tech giants Samsung and SK Hynix that stocks of tungsten hexafluoride, an essential gas for 3D NAND chip production, could be depleted by this summer. This looming crisis coincides perfectly with the commercial ramp-up of Almonty’s flagship Sangdong mine in South Korea, positioning the company as a potential lifeline for the industry.

The market has taken note. Almonty’s stock has surged nearly 145% year-to-date and an astonishing 689% over the past twelve months, recently trading at 29.46 CAD, just shy of its 52-week high. This momentum is underpinned by a strategic overhaul. The company is relocating its headquarters from Toronto to Dillon, Montana, a move that brings it physically closer to the U.S. defense sector and its key Gentung Browns Lake project, slated for production in the second half of 2026.

The urgency driving this pivot is codified in U.S. law. Starting January 1, 2027, American defense contractors will be prohibited from sourcing tungsten from China, which currently controls over 80% of global production. Almonty is aggressively positioning itself to fill this gap. The company has bolstered its leadership with high-ranking U.S. military expertise, including retired four-star General Gustave Perna on its board and Steven L. Allen, a former general, as Chief Operating Officer to optimize operations.

Financially, the company is well-capitalized with a cash position of 268.4 million CAD, raised through recent financings. For fiscal 2025, Almonty reported a net loss of 161.9 million CAD on revenue of 32.5 million CAD, which was a 13% year-over-year increase. Management attributes the significant loss largely to non-cash accounting adjustments triggered by the sharp rise in its own share price.

All eyes are now on Sangdong. Phase 1 of the mine is operational, processing 640,000 tonnes of ore annually to produce approximately 2,300 tonnes of tungsten concentrate. With a high-grade ore body containing 0.51% tungsten trioxide—triple the global average—and a mine life exceeding 45 years, its commercial start in Q2 2026 is impeccably timed. Analysts project a dramatic revenue leap to 747.7 million CAD for 2026, with an implied EBITDA of 488.1 million CAD, assuming a smooth operational ramp-up.

The company’s products also benefit from a crucial trade exemption, as tungsten ore, concentrates, and oxides were explicitly excluded from recent U.S. tariff hikes. This status is reinforced by a long-term supply agreement with Global Tungsten & Powders in Pennsylvania, a key supplier to defense and semiconductor sectors.

Several near-term corporate events will shape the path forward. Shareholders have approved a reverse stock split at a ratio of up to five-to-one, which must be implemented by April 30, 2026. The company’s Annual General Meeting on June 8, 2026, is expected to provide details on this consolidation and updates on the planned Phase 2 expansion at Sangdong. That expansion aims to double processing capacity to 1.2 million tonnes of ore per year from 2027, which could allow the mine alone to meet 40% of global tungsten demand outside of China.

Investment banks are broadly supportive of the strategy. DA Davidson has a Buy rating with a $25 price target, B. Riley sees a $23 target, and Oppenheimer rates the stock Outperform with a $19 target. The coming months, starting with quarterly production data from Sangdong due in May 2026, will test whether the company’s ambitious strategic positioning can be matched by its operational execution.