Almonty Industries Reaches Pivotal Milestone Amidst Rising Costs

Almonty Industries commissions the Sangdong tungsten mine, achieving production targets but facing high administrative costs. Strong cash position and 539% stock growth support expansion plans.

The formal commissioning of the Sangdong tungsten mine represents a historic turning point for Almonty Industries. While the company has achieved its long-awaited production targets, its latest financial statements reveal the substantial capital demands of this transition. Investors are now scrutinizing a sharp increase in administrative expenditures.

A Solid Financial Base Supports Expansion

Despite a high burn rate during the critical construction and ramp-up phase, Almonty maintains a robust financial position. A financing round concluded in December 2025 injected $129.4 million, bringing the company's cash and equivalents to $268.4 million at the start of 2026. This stability is mirrored in capital markets: the stock has appreciated by over 539% year-on-year, closing Friday's session at CAD 20.91.

Market researchers at Diamond Equity Research recently acknowledged the successful start-up of Sangdong's first phase by lowering their discount rate to 7.0%. This adjustment reflects a significantly reduced project execution risk. Furthermore, the deferral of $3.1 million in revenue into Q1 2026, due to the timing of concentrate shipments, points to underlying operational stability.

Revenue Gains Overshadowed by Soaring Expenses

For the 2025 fiscal year, revenue advanced by 13% to $32.5 million. This growth was primarily driven by a surge in the spot price for Ammonium Paratungstate (APT), which averaged $2,250 per tonne through mid-March 2026. However, this top-line increase was met with significant costs. General and administrative expenses alone leapt to $9.4 million in the fourth quarter, up from $1.8 million.

These costs totaled $20.5 million for the full year. Management attributed a substantial portion of the reported net loss to non-cash accounting adjustments. This includes a $25.8 million charge related to the revaluation of warrant liabilities, triggered by the strong appreciation in the company's share price.

Strategic Positioning in the Global Tungsten Market

Operationally, the first phase of the Sangdong mine is now running with a targeted annual capacity of 640,000 tonnes of ore, equating to roughly 2,300 tonnes of tungsten concentrate. Focus is already shifting to the planned second expansion phase slated for 2027, which is expected to double throughput. At full capacity, Sangdong is projected to supply approximately 40% of the global tungsten demand outside of China.

Concurrently, the company is advancing its Panasqueira mine in Portugal and plans to bring the Gentung Browns Lake project in Montana to production readiness in the second half of 2026.