Almonty’s Korean Mine Hits a Pivotal Milestone as Molybdenum Contract Adds a $234 Million Cushion

Almonty Industries releases first Sangdong mine output on May 21, testing its 676% rally. Exclusive molybdenum deal, US defense alignment, and expansion vote loom.

The countdown to Almonty Industries’ next major catalyst is on. On May 21, the Canadian tungsten producer will release the first output figures from its Sangdong mine in South Korea, a moment that will test whether the stock’s stunning 676% gain over the past twelve months is built on substance or speculation.

Phase 1 of the operation began commercial activity at the end of March, with a processing capacity of 640,000 tonnes of ore annually — equivalent to roughly 2,300 tonnes of tungsten concentrate. The ore grade stands at about 0.51% tungsten trioxide, roughly three times the global average. Analysts at DA Davidson expect the mine to reach full commercial capacity during the second quarter of 2026.

But the story extends well beyond tungsten. Almonty has secured an exclusive offtake agreement with South Korean processor SeAH M&S for all molybdenum output from a neighbouring project. The contract guarantees minimum annual revenue of $234 million, providing a substantial financial buffer as the company scales up.

A Strategic Pivot to the U.S. Defense Sector

The company’s relocation of its headquarters to Dillon, Montana in April 2026 underscores a deliberate alignment with American defence priorities. A U.S. government report on April 29 formally classified dependence on imported raw materials as a threat to national security and industrial capacity. Starting January 2027, U.S. defence contractors must source tungsten exclusively from non-Chinese suppliers.

Almonty is explicitly exempt from U.S. retaliatory tariffs, backed by a long-term supply agreement with Global Tungsten & Powders in Pennsylvania. The company also works with American Defense International, and former U.S. generals sit on its board of directors.

Three investment banks currently rate the stock a “Strong Buy.” Texas Capital initiated coverage in April with a $25 price target, while B. Riley Financial and DA Davidson set targets of $23 and $25 respectively in March.

Shareholder Vote Looms as Expansion Plans Take Shape

On June 9, shareholders will gather for the annual general meeting to vote on a second expansion phase for Sangdong. If approved, processing capacity would double to roughly 1.2 million tonnes per year by 2027, potentially positioning the mine to supply about 40% of global tungsten demand outside China.

The meeting agenda also includes routine governance items: ratification of the fiscal 2025 financial statements, election of seven directors, and reappointment of Zeifmans LLP as auditor.

Financial Position Strengthened

Almonty’s balance sheet has improved markedly. Revenue in the fourth quarter rose 39% to $8.7 million. The reported net loss stems almost entirely from accounting revaluations tied to the sharp rise in the company’s share price. Cash stood at roughly $268 million at year-end.

A Nasdaq listing in July 2025 raised $90 million, and a follow-on equity offering in December added another $129 million. Institutional interest has swelled: the number of funds holding Almonty positions jumped more than 55% to 107.

Stock Consolidates After Record Run

After hitting an all-time high of C$32.07 in mid-April, the stock has pulled back about 15% to C$27.34. It remains comfortably above its 50-day moving average of roughly C$26, and the relative strength index of 57.9 suggests no overbought conditions. The annualised 30-day volatility of over 97% underscores the wild swings that have characterised the stock’s recent trajectory.

The May 21 production data will be the next major test. If the numbers meet or exceed expectations, the consolidation of recent weeks may prove short-lived. If they disappoint, the stock could face further pressure. Either way, the Sangdong mine is about to show its hand.