Almonty Industries Shares Slide Despite Operational Milestones

Almonty's strategic mine expansion is overshadowed by a $102M net loss and soaring costs, leading to a sharp investor sell-off.

Investors delivered a harsh verdict on Almonty Industries this week, sending shares down nearly 14% in a single session. This sell-off occurred against a backdrop of significant corporate progress, highlighting a clear market focus on the bottom line over strategic developments. The company's latest report presented a stark contrast between advancing projects and deteriorating financials.

Strategic Expansion Across Three Continents

Operational updates from Almonty were decidedly positive. The company celebrated the official commissioning of its Sangdong tungsten mine in South Korea's Gangwon Province on March 17. This facility is designed to process approximately 640,000 tonnes of ore annually, with an expected output of 2,300 tonnes of tungsten concentrate per year. A planned Phase 2 expansion, targeted for 2027, aims to double this capacity. At full production, Sangdong could supply an estimated 40% of the global tungsten demand outside of China—a critical strategic consideration given China's current control of roughly 88% of worldwide production.

In North America, the company has secured full ownership of the Gentung Browns Lake tungsten project in Montana, USA. This asset holds mineral resources of 7.53 million tonnes with a tungsten trioxide grade of 0.315%. Almonty is targeting production readiness in the second half of 2026, with an anticipated annual capacity of about 140,000 metric tonne units. Simultaneously, in Portugal, an extensive drilling program is underway at the Panasqueira mine to extend mining into deeper, higher-grade ore zones.

Financial Results Reveal a Cost Surge

The financial figures for fiscal 2025 painted a more complex picture. While annual revenue increased by 13% to $32.5 million, with a 39% jump to $8.7 million in the fourth quarter alone, costs soared. The company benefited from a rising tungsten APT price, whose twelve-month rolling average climbed to $2,250 per MTU—a gain of 534%.

However, general and administrative expenses ballooned, rising from $1.8 million to $9.4 million in the fourth quarter. For the full year, these costs increased from $6.2 million to $20.5 million. The net loss of $102.3 million was primarily driven by a non-cash derivative loss of $87.3 million. This accounting loss resulted from an IFRS-mandated revaluation of financial instruments, triggered by the substantial rise in Almonty's share price during 2025.

Market Punishes the Bottom Line

The 13.55% share price decline demonstrates that investors are currently prioritizing the loss figure over the strategic narrative. The net loss and the sharp rise in operating costs overshadowed the positive news from Sangdong and Montana.

Further impacting the reported numbers for 2025 was a $3.1 million revenue deferral. This revenue, tied to the timing of concentrate shipments, has been shifted into the first quarter of 2026.

Looking ahead, Almonty's medium-term strategy includes expanding Sangdong with a tungsten oxide plant and integrating the adjacent molybdenum deposit—a combination the company internally calls the "Korean Trinity." Whether this operational progress can close the valuation gap will largely depend on the speed at which Phase 2 in Sangdong and the Montana project can transition to delivering concrete production numbers.