Almonty Industries Reaches Critical Milestone as Production Commences

Almonty CA0203981034

Almonty Industries has completed a transformative year, evolving from an exploration company to a producer and witnessing its share price surge approximately 800% in 2025. As the company steps into the spotlight, the focus for 2026 shifts to whether its operational execution can justify the market's significant revaluation.

A major catalyst for the company's reassessment by investors is the changing geopolitical landscape. Beginning in 2027, the U.S. Department of Defense will prohibit the procurement of tungsten from non-allied nations, including China and Russia. Almonty has strategically positioned itself to become a key supplier for the Western defense industry. This move was underscored in November 2025 by the full acquisition of the "Gentung Browns Lake" project in Montana.

The strategic focus is also reflected in its executive appointments. In December, the company named retired Brigadier General Steven L. Allen as its new Chief Operating Officer, tasked with optimizing supply chains for strategic partners.

Sangdong Mine: A Game-Changer for Global Supply

The pivotal operational breakthrough occurred just before the year's end. On December 16, Almonty dispatched the first truckload of ore from its Sangdong mine in South Korea, marking the commencement of the path to commercial production. The strategic importance of this asset cannot be overstated; at full capacity, Sangdong is projected to supply over 80% of the world's tungsten production originating outside of China.

The deposit's quality is a standout feature, with an average tungsten grade of 0.45% WO₃—approximately three times higher than comparable competitor projects. The processing plant is mechanically complete, with dry plant commissioning already underway. Recovery rates achieved there are reported to be significantly above historical benchmarks.

Full operational ramp-up at Sangdong is scheduled for the first quarter of 2026. The initial phase targets processing approximately 640,000 tonnes of ore annually, with a planned second-phase expansion aiming to double capacity to 1.2 million tonnes.

Financial Fortitude for Future Growth

Almonty enters 2026 with a robust financial position. Following a CAD $129.4 million capital raise in December and a successful NASDAQ listing in July, the company holds more than CAD $111 million in liquid assets.

CEO Lewis Black emphasized that the company is now fully funded, with no immediate need for further capital measures for its ongoing projects. These funds are allocated primarily toward expanding the Panasqueira mine in Portugal and supporting exploration work in Montana and Korea.

Market Outlook and Valuation

Analyst firm DA Davidson sees further potential, citing reduced project risk and positive price dynamics for critical minerals. The firm currently maintains a price target of US $12.00. Almonty's market capitalization has reached approximately CAD $3 billion, reflecting the market's anticipation of its transition into a significant producer.

The coming year will be a critical test as the company works to translate its substantial potential and strategic advantages into consistent operational and financial results.