Almonty Industries Receives Major Price Target Upgrade Amid Critical Metals Shortage

DA Davidson hikes Almonty's price target to $25, citing a severe tungsten supply crunch driven by Chinese export curbs and rising defense demand. The miner begins production in Korea.

The intensifying global competition for essential raw materials has placed Almonty Industries squarely in the spotlight of financial research. In a significant move, investment bank DA Davidson has sharply revised its valuation for the mining company upwards, citing a deepening supply crisis for tungsten. This new assessment points to a fundamental shift in market dynamics that extends well beyond typical cyclical fluctuations.

DA Davidson has reaffirmed its buy rating for the miner while lifting its price target from $18.00 to $25.00. According to the firm’s experts, this decisive action was prompted by a severe imbalance in the global market. The analysts revised the price assumptions within their multi-asset model for the company, highlighting severely constrained production volumes that are redefining pricing mechanisms for strategic metals.

Operational Progress and Strategic Expansion

This financial reassessment is supported by tangible operational milestones. At its Sangdong mine in South Korea, Almonty has commenced active mining, marking its transition from commissioning to commercial extraction. Concurrently, the company is expanding its footprint in the United States. Following the acquisition of a project in Montana, it aims to achieve production readiness there in the second half of 2026.

These developments occur within a market environment shaped by restrictive trade policies. China’s imposition of strict export licenses and production quotas has drastically reduced the global supply of tungsten-containing products. Simultaneously, structural demand from the defense, aerospace, and manufacturing industries continues to grow.

A Decoupling in Pricing and Supply Chain Urgency

The ongoing supply shortage is driving spot prices consistently higher. For the current week, analysts anticipate the Fastmarkets reference price will surpass the $2,000 per metric tonne threshold. A critical detail involves the pricing structure for military applications: following recent geopolitical events, prices for defense-grade tungsten powder have formally decoupled from base prices.

In response to this trend, DA Davidson implemented a substantial increase to its base price forecasts through 2028. The earnings model for the first quarter of 2026 was set slightly above the current average price. This adjustment underscores the urgency with which Western supply chains are now being established to reduce dependency on insecure trade routes.

The combination of rising commodity prices and the ramp-up of its own production charts a clear path forward. Market researchers project that Almonty Industries will reach profitability within the current year.