Almonty’s Geo-Strategic Pivot: First Sangdong Tungsten Output Meets a SeAH-Backed Molybdenum Leg

Almonty's Sangdong mine ramps up tungsten output, molybdenum development nears, and China supply cuts boost prices—revenue triples, cash flow turns positive.

Almonty Industries is no longer a single-commodity story. The miner’s “Korean Trinity” strategy – tungsten expansion, a nano-tungsten oxide plant, and a neighbouring molybdenum deposit – is now entering the execution phase, with the first batch of production figures from the Sangdong mine in South Korea providing the hard proof investors have been waiting for.

The commercial scale-up began in late March, when Phase 1 of the tungsten operation started processing ore. The facility is designed to handle 640,000 tonnes annually, yielding roughly 2,300 tonnes of tungsten concentrate. Crucially, the ore grade is around 0.51% tungsten trioxide, well above the global average. Analysts at DA Davidson expect the mine to reach its nameplate capacity during the second quarter of 2026.

Yet the real plot twist lies just 150 metres away. Almonty holds mining and environmental permits for a molybdenum deposit at the same site, with plans to produce about 5,600 tonnes per year at full tilt. An exclusive offtake agreement with SeAH M&S, South Korea’s largest molybdenum processor, locks in the entire output. The target for first production is end-2026, piggybacking on the infrastructure and logistics already in place for the tungsten operation.

The macro backdrop gives both projects a powerful tailwind. China, which controls roughly 88% of global tungsten supply, replaced its export quota system with a strict licensing regime, sending the price of ammonium paratungstate (APT) surging from around $900 to more than $3,000 per metric tonne unit – a jump of over 230% since late 2025. Japanese chip-tool suppliers have warned Samsung and SK Hynix that stocks of tungsten hexafluoride, a critical material for memory-chip production, could run out by June. And from January 2027, U.S. defence contractors will be barred from using Chinese tungsten altogether. Almonty is already exempt from certain U.S. import tariffs and has a binding supply agreement with Tungsten Parts Wyoming covering at least 40 tonnes of tungsten oxide per month.

The financial momentum is also building. First-quarter revenue tripled to $25.4 million, and operating cash flow swung to a positive $9.7 million. The company ended March with $259.9 million in cash and working capital of $169.5 million, reducing the immediate need for external financing.

At the same time, Almonty is refreshing its leadership. Jorge Beristain, a former Deutsche Bank commodities analyst and Ryerson executive, takes over as chief financial officer on June 1, replacing Brian Fox, who left with immediate effect.

All eyes now turn to the annual general meeting on June 9. Shareholders will vote on Phase 2 of the Sangdong expansion, which would double processing capacity to 1.2 million tonnes per year, potentially covering an estimated 40% of non-Chinese tungsten demand. The stock, which has more than doubled year-to-date, recently eased to around C$24, retreating about 19% over the past month as the market shifts its focus from anticipation to operational delivery.

The next few weeks will test whether Sangdong’s real-world performance can match the ambitions baked into the valuation – and whether the molybdenum leg of the Korean Trinity can soon add a second revenue stream.