Almonty's Wolfram Strategy Gains Momentum as Sangdong Ramps Up and US Presence Deepens

Almonty's Sangdong mine reaches 640K tonnes capacity as tungsten prices surge 534%. Stock dips 5.3% despite 148.8% YTD gain, with options activity and analyst views divided.

The tungsten market is in the midst of a historic rally, and Almonty Industries is positioning itself at the center of the action. The company's Sangdong mine in South Korea has reached its first-phase production capacity of 640,000 tonnes per year, a milestone that comes as the price of ammonium paratungstate has surged 534% to $2,250 per MTU through March 2026.

Yet the stock opened the week under pressure. In premarket trading Monday, shares slipped 5.3% to $20.75, a pullback that followed a 148.8% year-to-date gain. The Friday close stood at $21.92, well above both the 50-day moving average of $17.77 and the 200-day average of $11.76.

Options Market Activity Raises Eyebrows

Thursday's derivatives session caught attention when traders snapped up 5,235 call options — a 166% surge above the typical daily volume of roughly 1,968 contracts. While such spikes often signal speculative positioning, they offer little clarity on near-term direction.

Analyst views remain sharply divided. Texas Capital upgraded the stock to "Strong Buy" on April 16. B. Riley pegs fair value at $23.00, while Oppenheimer sees it at $19.00. Weiss Ratings, however, maintains a "Sell" rating, underscoring the tension between technical momentum and fundamental assessment.

Sangdong's Expansion Roadmap

The Sangdong operation has completed its initial commissioning phase and is now ramping toward full first-stage output. Phase II expansion, targeting 1.2 million tonnes annually, is slated for completion by the end of 2027. At full capacity, Sangdong would supply roughly 40% of global tungsten demand outside China — a critical factor given Beijing's export restrictions and the US import ban on tungsten for defense procurement.

Almonty's financial picture is mixed. The company holds approximately $268 million in cash, but reported a net loss of 161.9 million Canadian dollars for full-year 2025. That deficit was largely driven by non-cash valuation adjustments on derivatives, triggered by the stock's sharp rally.

Montana Move Deepens Defense Ties

The relocation of Almonty's headquarters from Toronto to Dillon, Montana, is more than a change of address. Two retired US generals now sit on the board, bringing expertise in defense procurement and national security. The move followed a busy capital markets period: a Nasdaq IPO in mid-2025, an oversubscribed capital raise, and a $129 million follow-on offering late last year.

The Gentung project in Montana is scheduled to restart production in the second half of 2026. Morgan Stanley, in late April, identified Almonty as one of the few mining companies essential to the emerging space economy, citing tungsten's highest melting point of any element — a property critical for aerospace and defense applications.

Upcoming Catalysts

The annual general meeting is set for June 9, 2026, where shareholders will likely press for updates on the Gentung timeline. Meanwhile, on April 24, Almonty applied to list new securities on the Australian Stock Exchange, with trading volumes around that date running unusually high.

Whether the operational breakthrough at Sangdong can sustain the valuation hinges on how quickly full production is achieved. The company's twin-continent strategy — South Korea for scale, Montana for US defense access — gives it a unique position in a market where supply chains are being fundamentally redrawn.