Almonty’s Sangdong Mine Starts Commercial Production as Tungsten Prices Triple, Driving Revenue Surge and Index Inclusion

Almonty Industries swings to positive cash flow in Q1 2026 as Sangdong mine ramps up, revenue jumps 221% to $25.4M amid record tungsten prices; index inclusion looms.

The transformation from developer to producer has arrived for Almonty Industries. After years of groundwork, the Sangdong mine in South Korea is now churning out tungsten on a commercial basis, and the financial impact is unmistakable. The company’s first-quarter numbers for 2026 show a swing from deep losses to positive cash flow, powered by a tripling in the price of ammonium paratungstate (APT).

Tungsten and APT have been trading near record levels. On May 29, APT fetched an average of $3,040 per metric tonne unit, compared with $920 at the start of the year. Management sees the rally persisting, citing tight supply and robust demand from the semiconductor and defence sectors. That backdrop has turned Almonty’s economics inside out.

Revenue in the first fiscal quarter hit $25.4 million, a 221% leap from a year earlier. More tellingly, the company generated $9.7 million in positive operating cash flow after reporting a negative $4.4 million in the prior-year period. Adjusted EBITDA swung from a loss of $2.4 million to a gain of $6.1 million. The reported net loss of $5.3 million masks this progress — nearly all of that figure stems from $8.4 million in non-cash valuation losses on derivatives and warrants, which management says have no bearing on operational liquidity.

The operational engine behind these numbers is Sangdong. Phase 1 began commercial production in mid-March, and the ramp-up is on track. First output data from the mine is expected in June, with full Phase 1 throughput anticipated in July. Planning is already under way for Phase 2, which would roughly double the mine’s output. Meanwhile, drilling continues at the Panasqueira mine in Portugal, where the L4 extension could add additional tonnes by early 2027.

Analysts have taken notice. Oppenheimer raised its price target from $22 to $25 — about 25% above the June 3 closing price of $19.96. The broader consensus stands at $19.88, with six covering houses assigning a “Moderate Buy” rating. For the full year, analysts project earnings per share of $0.30.

Investors have another reason to be optimistic: Almonty will join the Russell 1000 and Russell 3000 indexes on June 29. That forces ETF providers to add the stock to their portfolios, creating a wave of forced buying. The share price has already surged 133% year to date, trading recently at around C$28, or roughly US$20.

The balance sheet supports the expansion plans. As of March 31, the company held $259.9 million in cash, with working capital of $169.5 million. While that figure edged down from $268.4 million at year-end 2025, the liquidity cushion remains ample for the capital needed to double output at Sangdong and advance the Portuguese extension.

With production underway, high tungsten prices flowing through, and index inclusion days away, Almonty has begun to deliver on the promises that have fuelled a blistering rally. The next few months — June’s mine data, July’s Phase 1 ramp-up, and details on Panasqueira’s L4 — will determine whether the price tailwind can be converted into sustained profitability.