Almonty Industries: Strategic Positioning Fuels Continued Share Price Momentum

Almonty Industries hits a 52-week high as geopolitics tighten tungsten supply and its flagship Sangdong mine prepares for production, positioning it as a key non-Chinese supplier.

Shares of tungsten producer Almonty Industries have been reaching new heights, propelled by a powerful confluence of surging commodity prices and significant operational milestones. As geopolitical shifts tighten global supply and Western nations scramble for secure sources, the company is on the cusp of commencing output at its flagship asset. This strategic alignment recently drove the stock to a fresh 52-week peak on the Toronto Stock Exchange (TSX).

Geopolitics Reshape the Tungsten Market

A fundamental structural shift is underway in the global tungsten sector. Prices for the critical metal have quadrupled within a single year. This surge is largely driven by supply constraints from China, which dominates approximately 85% of worldwide production. Beijing has tightened export controls on dual-use materials, and reports indicate several Chinese mines have faced closures amid declining ore grades that push costs higher.

Concurrently, Western demand is intensifying. The United States plans to ban Chinese tungsten in defense procurement from 2027, while European nations are building strategic stockpiles. This dynamic is creating a substantial supply gap for which non-Chinese producers are poised to compete.

Sangdong Mine: The Pivotal Catalyst

The immediate driver behind the recent share price advance beyond 20 CAD is the imminent commercial launch of the Sangdong mine in South Korea. Almonty has successfully transitioned from pure development to active mining, a move signaled by the first ore deliveries to the run-of-mine pad in December.

Commercial production for Phase I remains scheduled for the first quarter of 2026. If the timeline holds, Sangdong at full capacity could supply over 40% of global tungsten demand outside China, granting Almonty a considerable strategic advantage in the current geopolitical climate.

Financial Footing and Analyst Sentiment

To fund its expansion, Almonty strengthened its balance sheet in 2025 through capital raises exceeding 219 million USD. The company reported cash reserves of about 109 million CAD at the end of the third quarter of 2025. Its financial structure, characterized by a debt-to-equity ratio above 200%, reflects the heavy investment phase typical ahead of a project achieving profitability.

Market experts are responding favorably to the progress. The consensus revenue estimate for 2026 has been revised upward from 187 million to 231 million CAD. In mid-February, B. Riley Securities reaffirmed its positive outlook, raising its price target from 10 to 17 USD.

With the targeted production start this quarter, Almonty is executing the critical shift from developer to producer. The operational performance during this ramp-up phase will ultimately determine if the company can justify the market's elevated expectations and its current valuation, which now surpasses 5 billion CAD.