Almonty’s First Quarter Delivers on Revenue as Stock Soars 725% in a Year

Almonty Industries posts 221% revenue jump and first positive operating cash flow, supporting its 725% stock gain amid China tungsten export restrictions.

The market’s bet on a Chinese tungsten squeeze has already minted stellar returns for Almonty Industries shareholders — a 725% gain over twelve months and 138% year-to-date, with the stock closing at CAD 28.62. But the company’s first-quarter numbers show the rally is now being underpinned by something more tangible than raw supply fears.

Revenue surged 221% to US$25.4 million, driven by the sharp climb in APT spot prices and steady output from the Panasqueira mine. More importantly, the miner swung to an operating cash flow of US$9.7 million, a long-awaited milestone for a stock that had been trading on project finance and future hopes. Adjusted EBITDA came in at US$6.1 million, flipping from a loss a year earlier.

The net loss narrowed to US$5.3 million from US$34.6 million, but the bottom line remains red because of non-cash charges tied to the revaluation of warrant liabilities and embedded derivatives — a direct consequence of the stock’s own rally. The company stressed that these book losses have no impact on its operating performance, cash position or liquidity.

China’s grip on more than 80% of global tungsten output has thrown the market into turmoil after new export restrictions sent prices soaring roughly 90%, according to Fastmarkets. Against that backdrop, Almonty’s Sangdong mine in South Korea’s Gangwon province — formally commissioned on March 17 — is being positioned as a strategic west-of-China supply alternative. The company underlined its geopolitical ambition by relocating its corporate headquarters from Toronto to Dillon, Montana, moving closer to the Gentung project and potential U.S. government and defense partners.

The balance sheet is well stocked for the next phase. Cash stood at US$259.9 million and working capital at US$169.5 million, providing the firepower to push Sangdong toward commercial operation and fund a planned second expansion. That expansion, targeted for completion by 2027, will lift capacity to up to 1.2 million tonnes per year.

General and administrative expenses rose to US$7.1 million, reflecting stepped-up spending on management, legal, consulting and exchange infrastructure. Management expects these costs to normalise as the year progresses. Meanwhile, the stock’s annualised volatility of 89% points to a market still pricing in wild swings.

Almonty chief Lewis Black took the investor roadshow to Miami and Toronto this week, flagging a second bottleneck in the industry: a severe shortage of qualified personnel that hampers efforts to build alternative supply chains outside China. A study by BMO Global Commodities Research underlined the funding imbalance — of the roughly US$18.6 billion the U.S. government has directed toward critical minerals projects, the vast majority has gone to rare earths, leaving tungsten projects starved for capital.

To sweeten the narrative for long-term shareholders, the company has launched a prize draw for Canadian investors who have held their shares for at least three years: a trip to the Sangdong mine, with the winner drawn in early June.

Clarity on tungsten pricing could come later this month. Fastmarkets is running a consultation on a formal pricing assessment, with the comment period closing May 26 and a final methodology expected shortly after. For a stock already pricing in a tight supply narrative, the market will be watching to see whether those numbers also confirm Almonty’s operating leverage.