Almonty Industries Receives Major Price Target Upgrade Amid Favorable Market Dynamics

Almonty CA0203981034

A powerful combination of operational milestones and highly supportive commodity pricing is creating a bullish outlook for tungsten specialist Almonty Industries. In a significant move, the German research firm Sphene Capital has substantially increased its valuation for the company's stock, reflecting confidence in its near-term trajectory.

Sphene Capital released a new research note today, sharply raising its price target for Almonty. The firm's analysts now see the stock reaching 20.10 CAD, a dramatic increase of approximately 49% from its previous target of 13.50 CAD. Peter Thilo Hasler, the analyst behind the update, reaffirmed a "Buy" recommendation on the shares. Based on the closing price on the TSX from February 2, this new valuation implies an upside potential of 29%.

Surging Tungsten Prices Underpin Valuation

The substantial re-rating is primarily driven by a sharp rally in the price of tungsten, a critical industrial metal. Benchmark prices have recently climbed to around 1,250 USD per metric tonne unit (MTU). This surge followed a breakthrough in mid-January above the psychologically important 1,000 USD threshold.

Fundamental shifts in the global market are fueling this price appreciation:
* China, which controls over 82% of worldwide production, has tightened its export regulations.
* Production quotas within the country have been reduced since the beginning of 2025.
* Global inventories for industrial metals are sitting at historically low levels.

Concurrently, demand from the defense sector is rising, particularly for armor-piercing ammunition. A forthcoming U.S. mandate, effective 2027, which will prohibit the sourcing of tungsten for military applications from China, is significantly enhancing the strategic importance of supply from Western sources.

Operational Milestone Achieved in Korea

Almonty is capitalizing on these favorable market conditions with tangible operational progress. The company announced on December 16, 2025, that it had delivered the first ore for processing from its Sangdong mine in South Korea. This event marks a crucial transition from mine development to active production. The extracted ore is now moving through the necessary processing stages, from crushing to concentration. Once the mine reaches full operational capacity, it has the potential to supply more than 80% of the world's tungsten production originating outside of China.

For Almonty Industries, the focus throughout 2026 will be entirely on ramping up Phase 1 at Sangdong to achieve full commercial production. This will establish the foundation for the planned Phase 2 expansion scheduled for 2027.