Almonty’s Sangdong Mine Flips to Positive Cash Flow as US Tungsten Import Ban Reshapes the Market

Almonty Industries posts first positive operating cash flow as APT prices surge to $3,000; Sangdong mine set to cover 40% of non-Chinese tungsten output amid US import ban.

The tungsten market is undergoing a structural shift. Ammonium paratungstate (APT) prices have surged from $920 per metric tonne unit at the start of 2026 to over $3,000, as China’s grip on global supply tightens and Western buyers scramble for alternatives. For Almonty Industries, which just posted its first positive operating cash flow from the Sangdong mine in South Korea, the timing could not be more strategic.

Almonty’s first-quarter results mark a clear turning point. Revenue jumped 221% year-on-year to $25.4 million, driven by the ramp-up at Sangdong and the sharp rise in tungsten spot prices. More tellingly, operating cash flow swung to a positive $9.7 million from a negative $4.4 million in the same period last year. The company still reported a net loss of $5.3 million, but that was largely due to non-cash valuation effects on derivatives and warrants, not operational weakness.

The Sangdong deposit ranks among the world’s largest and highest-grade tungsten assets. Proven reserves stand at 7.9 million tonnes grading 0.45% tungsten trioxide, with indicated resources of 8.3 million tonnes and inferred resources of 52.8 million tonnes. Production costs come in at roughly $110 per unit, leaving an extraordinary margin against current market prices above $3,000. At full capacity, the mine is expected to cover around 40% of global tungsten output outside China.

Two long-term offtake agreements underpin the revenue base. Almonty has a 60-year molybdenum supply contract with SeAH M&S that feeds SpaceX, and a 15-year tungsten agreement with Global Tungsten & Powders Corp. that guarantees a minimum price of $235 per unit. That floor provides downside protection, though it captures only a fraction of today’s spot price – the real upside lies in the company’s ability to negotiate additional sales at market rates as the US ban on Chinese tungsten imports kicks in from 2027.

China currently controls about 80% of global tungsten production, making Western defense and industrial users acutely vulnerable. The planned US procurement prohibition is already forcing arms makers and aerospace companies to secure non-Chinese sources. Canaccord Genuity forecasts global tungsten demand will rise 47% to 210,000 tonnes by 2035, a pace that supply outside China is unlikely to match.

Analyst support for Almonty is building. Alliance Global raised its price target from $19.25 to $26.25, while Bank of America lifted its target from $20 to $23. Nine out of ten analysts rate the stock a buy. On German tradegate, shares recently changed hands at €16.09, reflecting subdued trading on a public holiday but with upside potential as the ramp-up progresses.

The company has also strengthened its management team. Jorge Beristain steps in as chief financial officer on June 1. Commercial full production at Sangdong is expected in the third quarter. Meanwhile, the relocation of Almonty’s headquarters to Dillon, Montana underscores a deliberate pivot toward the US defense supply chain – a move that aligns neatly with the coming import restrictions.

Almonty’s transition from developer to producer is now generating tangible cash flow. With a historically tight market and a geopolitical catalyst on the horizon, the next few quarters will test whether the Sangdong mine can deliver on its promise at scale.