Almonty Industries Gains Momentum as Key Mine Begins Operations

Almonty Industries begins production at its flagship Sangdong tungsten mine as analysts raise price targets due to a severe global supply shortage, fueled by Chinese export restrictions.

A confluence of strategic progress and favorable market dynamics is drawing significant attention to Almonty Industries. The company is transitioning from project development to active production at its flagship Sangdong tungsten mine in South Korea, while simultaneously benefiting from a tightening global tungsten market. This shift is being closely watched by analysts and institutional investors alike.

Production Commences at Flagship Asset

The operational phase has officially begun at the Sangdong mine in Gangwon Province. The site has dispatched its first truckload of ore, marking the commencement of active mining—the final stage before achieving full commercial production. Processing facilities are reported to be operating according to schedule, with capacity slated for a gradual ramp-up through 2027.

The deposit holds reserves of 7.9 million tonnes. Furthermore, a Phase-II expansion planned for 2027 is expected to boost annual capacity to as much as 1.2 million tonnes.

Analysts Revise Targets Amid Supply Crisis

The evolving market backdrop has prompted several financial institutions to reassess their outlook on Almonty. DA Davidson significantly increased its price target to US$25 from US$18, reiterating a "Buy" rating. The analysts cited adjusted price assumptions in their model, pointing to what they now classify as a supply crisis in the tungsten market. They anticipate the weekly Fastmarkets price fix will remain above US$2,000 per metric ton unit (mtu).

The firm's research indicates global mining supply is "extremely" constrained. It also notes a recent decoupling of defense-grade powder prices from the base Ammonium Paratungstate (APT) benchmark, following developments in the Middle East.

Other firms have followed with upward revisions. Couloir Capital raised its fair value target by more than 150% in this cycle—from C$7.69 to C$19.30—citing tungsten prices above US$1,000 per mtu and the Sangdong ramp-up. Oppenheimer lifted its target to US$16 (from US$12), and B. Riley increased its target to US$17 (from US$10).

Export Restrictions Fuel Price Surge

Market conditions for tungsten have shifted dramatically. China, which controls an estimated 75–80% of global supply, notably tightened its export restrictions in late 2025. An analysis by BMO Capital Markets suggested certain Chinese tungsten exports temporarily came to a complete standstill at that time.

This supply shock had a direct impact on prices: tungsten surged by more than 160% in 2025 and continued its ascent into the early weeks of 2026.

Institutional Interest Intensifies

The investment thesis is gaining traction within the institutional community. The number of funds holding positions in Almonty jumped by over 55% last quarter, reaching 107. Notable activity includes Van Eck Associates, which expanded its holding by 13,294.7% in Q4 to 11,239,482 shares (valued at US$99.013 million). Encompass Capital Advisors reported a new position worth US$25.62 million, and Next Century Growth Investors initiated one valued at US$16.345 million. Additionally, First Eagle Investment Management purchased a new stake in the third quarter, according to the latest SEC filing.

Portfolio and Upcoming Catalysts

Beyond Sangdong, Almonty's project pipeline includes a planned capacity increase at Panasqueira (Portugal), resource definition work at the Sangdong molybdenum project, and progress at Gertung Browns Lake (USA), which could be ready in the second half of 2026. The company also has interests in Valtreixal (northwest Spain) and the Los Santos mine (western Spain).

The next key milestone is scheduled for March 26, when Almonty is set to release its next report. This update is anticipated to provide the first tangible financial data reflecting both the higher tungsten price environment and the initial production from Sangdong, offering a critical test of the company's operational execution.