Almonty Industries Shares Pull Back Following Record Rally

Almonty CA0203981034

After a significant upward surge, shares of Almonty Industries experienced a notable correction. The stock, which had recently climbed to an unprecedented peak, retreated in yesterday's trading session. This pullback is attributed to profit-taking activity, coming on the heels of a sharp price increase fueled by the tungsten producer's aggressive growth strategy.

Trading on the NASDAQ, the equity declined by 7.8% on Tuesday, closing at a price of $10.68. This downward move interrupts a remarkable performance the prior week, during which the stock's value advanced by more than 28%. A key observation from the session was the reduced trading volume. Approximately 1.84 million shares changed hands, a figure roughly 59% below the stock's average daily volume. This lower volume amidst a price decline suggests a technical consolidation phase with limited selling pressure.

The catalyst for the preceding rally was a detailed letter to shareholders issued by CEO Lewis Black on January 20. In the communication, management outlined a strategic ambition to control at least 40% of the global tungsten supply originating outside of China. This goal is to be achieved through a diversified operational platform spanning North America, Europe, and Asia.

A central component of this plan is the Sangdong mine in South Korea. Active mining operations commenced there in December 2025. The company's current focus is on transitioning the first phase of this project into full commercial production during this year. A planned second phase of expansion, targeted for 2027, is designed to boost annual capacity to 1.2 million tonnes. Concurrently, Almonty is advancing its U.S. venture in Montana, which was fully acquired in 2025. The objective is to achieve production readiness at this site in the second half of 2026.

Valuation Metrics and Forward-Looking Considerations

Despite these operational milestones, the company's current valuation appears to incorporate substantial growth expectations. With a market capitalization of $2.91 billion and a negative price-to-earnings ratio of -48.08, significant future execution is already priced into the stock. Furthermore, the balance sheet shows a debt-to-equity ratio of 16.37, indicating a heightened level of leverage.

Even after the recent decline, the share price remains well above its 50-day moving average of $8.17. The trajectory of the stock in the near to medium term is likely to be heavily influenced by Almonty's ability to meet its stated production timelines in both South Korea and Montana throughout 2026.