Almonty Industries: Capitalizing on the Strategic Shift in Critical Minerals

Almonty CA0203981034

The transformation of Almonty Industries from a project developer to a producing tungsten supplier is now underway, catalyzing a remarkable revaluation of its shares. A strategic pivot towards the U.S. defense sector and the commencement of operations at its flagship asset have driven the equity's value upward by more than 800% in 2025. This surge underscores the company's emerging role in Western initiatives to establish supply chains independent of Chinese dominance for this critical metal.

The fundamental backdrop for tungsten has shifted dramatically. Spot prices have climbed from historical planning levels of $200–300 per metric tonne unit (MTU) to approximately $800 per MTU. This elevated pricing environment significantly enhances future revenue and margin prospects for producers outside the traditional supply bloc. Currently, China, Russia, and North Korea collectively control an estimated 87% of global tungsten supply. A U.S. government target to achieve independence from these sources by 2027 is creating structural demand and price support for Western-aligned companies like Almonty.

Sangdong Mine: Transition to Production

The core of Almonty's operational evolution is the Sangdong mine in South Korea's Gangwon Province. In mid-December, the first truckload of ore was delivered to the run-of-mine stockpile, marking the tangible shift from development to active mining.

Key project metrics outline its scale:
* Phase I Capacity: A target of 640,000 tonnes of tungsten ore per year.
* Phase II Expansion: A planned ramp-up to 1.2 million tonnes annually.
* Mine Life: An estimated 100 years of minable reserves based on current resources.
* Reserve Grade: 7.9 million tonnes of ore averaging 0.47% WO₃.
* Strategic Goal: To supply roughly 40% of global tungsten demand originating outside of China, Russia, and North Korea.

The processing plant is mechanically complete, with commissioning of the crushing, milling, and flotation circuits ongoing. The transition to full commercial production is scheduled for the first quarter of 2026, a milestone that will shift the company's valuation toward metrics based on actual production and cash flow.

Deepening Ties with U.S. Defense and Industry

Almonty is rapidly building its presence within the American defense industrial base. The company relocated its legal domicile to Delaware in December 2025, emphasizing its strategic focus on the U.S. market.

This effort is supported by concrete partnerships and acquisitions:
* A supply agreement with Tungsten Parts Wyoming (TPW) for a minimum of 40 tonnes of tungsten oxide monthly, destined for use in missiles, drones, and munitions systems.
* A processing partnership with Israel's Metal Tech to convert tungsten oxide into metal powder for the TPW supply chain.
* An ongoing strategic cooperation with American Defense International (ADI), established in March 2025, to facilitate government relations and market access.
* The acquisition of the Gentung Browns Lake tungsten project in Montana for $9.75 million in November 2025.

The company's strategic relevance was further highlighted when the U.S. House Select Committee on the Chinese Communist Party directly contacted Almonty to formally inquire about its production capabilities and supply options.

Financial Foundation for Growth

Almonty has fortified its balance sheet to execute its ambitious plans. Following a Nasdaq listing in July 2025 that raised approximately $90 million, the company completed a further capital raise in December 2025, generating $129.4 million. Bank of America acted as sole bookrunner on the transaction, which was oversubscribed, leading to the full exercise of the over-allotment option by the syndicate banks.

These funds are allocated to specific initiatives:
* Final commissioning and production ramp-up at Sangdong.
* Exploration and development work at the Gentung Browns Lake project.
* The expansion program at the Panasqueira mine.
* A drilling program for the Sangdong molybdenum project.

With liquid resources of $111.6 million at the end of Q3 2025, plus the recent equity proceeds, Almonty is financially positioned to fund its near-term investments without requiring additional financing—a critical factor for executing its 2026 growth agenda.

Building a Global Portfolio

Beyond Sangdong, Almonty is expanding its international asset base to diversify future cash flows across multiple jurisdictions and customer groups.

• Panasqueira Mine, Portugal: A major drilling program commenced in November 2025 for the "Level 4" extension, involving 14,000 meters of drilling with three rigs over twelve months.
• Gentung Browns Lake, USA: This project is expected to initiate the first U.S. tungsten production in over a decade during the second half of 2026.
• Offtake Agreements: Sales channels are secured through agreements with U.S. processors including GTP, Kennametal, and Buffalo Tungsten, ensuring non-Asian market access.

The company's heightened visibility was underscored by Chairman Lewis Black presiding over the Nasdaq Opening Bell ceremony in November 2025, reflecting its growing profile within U.S. capital markets.