Almonty's Sangdong Mine Delivers First Output as Tungsten Crisis Reshapes Global Supply Lines

Almonty reports first Sangdong production data: 0.51% ore grade, 2,300t/yr concentrate. Operating cash flow turns positive as tungsten prices surge 230% on China export restrictions.

The moment of truth has arrived for Almonty Industries. Almost 500 percent of stock gains over the past year rested on the promise of its Sangdong tungsten mine in South Korea. Now the first production data are out, and they give investors something to measure against those lofty expectations.

Sangdong is designed to process 640,000 tonnes of ore annually, yielding roughly 2,300 tonnes of tungsten concentrate. The ore grades 0.51 percent tungsten trioxide — well above the global average, a structural cost advantage that analysts at DA Davidson believe will allow the mine to hit full capacity during the current second quarter of 2026.

These numbers are not just operational metrics. They represent the first hard evidence that Almonty can execute on a plan built around one core idea: become the West's primary supplier of a metal that is suddenly the center of a geopolitical tug-of-war.

The Tungsten Price Shock Heard Round the World

The backdrop could hardly be more favorable for a non-Chinese producer. Ammonium paratungstate (APT), the key tungsten intermediate, has rocketed from around $900 per metric ton unit to over $3,000 — a gain of more than 230 percent. The trigger was China's shift from export quotas to a license system that effectively handed control to just 15 state-owned firms, freezing APT exports since the start of the year.

The fallout is already rippling through the semiconductor industry. Japanese suppliers have warned Samsung and SK Hynix that their stocks of tungsten hexafluoride — essential for 3D NAND production — could run dry by summer.

Meanwhile, from January 2027, US defense contractors will be barred from using Chinese tungsten. Almonty's ore is explicitly exempt from American retaliatory tariffs, backed by a long-term supply agreement with Global Tungsten & Powders in Pennsylvania. The company's presentation at the Critical Minerals Institute Summit and the Bank of America Metals Conference in May reinforced that strategic messaging.

Second String to the Bow

Just 150 meters from Sangdong lies another project already fully permitted. Molybdenum production is slated to begin by the end of 2026, with a mine life of 60 years and an annual capacity of 5,600 tonnes at full tilt. Shared infrastructure with the tungsten operation should keep costs down. An off-take agreement with South Korea's SeAH M&S locks in a minimum price of $19.00 per pound, covering the entire output.

The Financial Picture Starts to Shift

The first quarter of 2026 showed Almonty is still losing money — but the trajectory is turning. Revenue reached C$25.40 million, more than triple the prior-year level, while the net loss narrowed to C$5.26 million. The critical change came in cash flow: operating cash flow swung to positive C$9.7 million. As of March 31, the company held nearly C$260 million in cash, ample room for planned investments.

The market capitalization stands at roughly C$7.43 billion, a multiple that leaves no room for error. The trailing price-to-earnings ratio of negative 54.38 confirms classic valuation models offer little comfort here.

Stock Action: Hot Momentum, Cool Pullback

The shares closed Friday at A$26.20, up 6.37 percent on the day, and have gained 97.89 percent since January. But the ride is anything but smooth. Over the past month the stock has shed 15.57 percent, and the relative strength index at 79.6 signals overbought conditions. The price sits just below its 50-day moving average while remaining well above the 200-day line — a classic tension between short-term weakness and long-term trend.

The recent retreat followed a quarterly report that, despite a sharp revenue increase and lower losses, fell short of analyst expectations. Sentiment remains fragile: any operational slip could amplify the pullback.

A Busy Calendar Ahead

June brings a flurry of events. On June 1, Jorge Beristain steps in as chief financial officer, joining from US metal distributor Ryerson Holding after earlier stints covering commodities at Deutsche Bank. He takes the helm just as Almonty transitions from developer to producer.

On June 9, shareholders will vote on doubling Sangdong's processing capacity to 1.2 million tonnes per year — a clear sign of management's ambition. In the second half of the year, the Gentung project in Montana is expected to start up, adding 140,000 tonne units per year from a former mine. A 15-year contract already covers more than 90 percent of the first phase, with US defense customers as the primary buyers.

For now, the Sangdong production figures are the first real proof point. They show whether the mine can deliver the efficiency that has powered the stock's stunning run. If output targets are met, the premium valuation gains a firmer foundation. Any delays or fresh capital needs would feed the doubts that, after a near-doubling year to date, can return to the forefront in a hurry.