Almonty Industries Stock Surges on Transition to Producer Status

Almonty CA0203981034

Shares of Almonty Industries have ignited, extending a monumental rally with a 12.1% single-day gain. This latest advance follows a shareholder update confirming a pivotal corporate milestone: the company has successfully commenced production at its flagship Sangdong mine in South Korea, cementing its shift from project developer to active producer. The stock has appreciated by approximately 750% over the preceding twelve months.

Beyond the operational update, the market is reassessing Almonty’s value based on newly detailed, binding offtake agreements. These contracts are for tungsten oxide specifically designated for United States defense applications. Such deals not only secure future revenue streams but also validate the company’s strategic positioning within a critical supply chain.

This development is acutely timed within a tense geopolitical landscape. China, which currently dominates global tungsten output with over 80% of production, has implemented export restrictions. Compounding this, a U.S. import ban on Chinese tungsten for defense purposes is set to take effect in 2027. These factors collectively make secure, non-Chinese sources like Almonty indispensable to Western industrial and military planning.

Sangdong Mine: From Construction to Commercial Operation

The long-anticipated transition at the Sangdong project is now official. CEO Lewis Black confirmed that active mining began in December 2025, with the first truckload of ore already processed. This marks the definitive conclusion of the site’s pure construction phase.

Positioned as a linchpin for Western supply security, the mine is targeting full commercial operation for its initial phase within the current calendar year. A planned Phase II expansion is on the horizon, aiming to boost annual capacity to 1.2 million tonnes by 2027. This would enable a potential output exceeding 460,000 Metric Tonne Units (MTU).

Financial Fortitude and Supportive Commodity Pricing

Almonty enters this growth phase with a reinforced balance sheet. The company bolstered its treasury through two significant capital raises in 2025, including an oversubscribed public offering and a subsequent placement in December. These initiatives injected approximately $219 million in funds to underwrite the ongoing operational ramp-up.

The macroeconomic backdrop provides further support. Tungsten prices soared by more than 160% throughout 2025 and have continued their upward trajectory into the opening weeks of 2026.

Expanding the Pipeline and Executive Expertise

Management is not resting on its Korean success. The company’s pipeline includes the “Gentung Browns Lake” project in Montana, acquired in November 2025, which is slated to be production-ready by the second half of this year. Furthermore, Almonty has strengthened its operational leadership with a clear defense-sector focus. In December, retired Brigadier General Steven L. Allen was appointed as Chief Operating Officer.

For investors in 2026, the focus shifts squarely to execution. Key priorities are clearly defined: ramping Sangdong to sustained commercial production levels and advancing expansion preparations in the U.S. and Portugal. With a market capitalization now around 3.18 billion CAD, the market is increasingly pricing in the company’s successful transformation into a established producer.