Almonty Secures Strategic Funding for Expansion Drive

Almonty CA0203981034

Almonty Industries has fortified its financial position through a successfully upsized equity offering, providing substantial resources to advance its development pipeline. With fresh capital secured, attention turns to progress at the pivotal Sangdong mine. The move positions the company for a critical phase as it approaches key operational milestones in 2026.

The company has completed the placement of 20.7 million new common shares at an issue price of US$6.25 per share. BofA Securities acted as the lead bookrunner for the transaction, with Cantor Fitzgerald, D.A. Davidson, and A.G.P./Alliance Global Partners also participating in the syndicate.

Key details of the offering include:

• Gross proceeds of US$129.375 million.
• The deal exceeded the initially targeted volume of US$112.5 million.
• Full exercise of the underwriters' over-allotment option.
• The US$6.25 issue price represents a premium of approximately 39% over the US$4.50 price set for its Nasdaq listing in July.

This capital raise follows the initial public offering on the Nasdaq exchange during the summer, which raised US$90 million. Following the announcement of this latest offering on December 8/9, the company's shares experienced a decline of roughly 12-13% as the market priced in the dilutive effect—a typical reaction to capital initiatives of this scale.

Allocation of New Funds

Management has outlined a clear strategy for deploying the newly acquired capital, focusing on the development and expansion of core assets:

• Genting Browns Lake (Montana, USA): Funding exploration and development work at this recently acquired tungsten project, marking Almonty's strategic entry into the U.S. market.
• Panasqueira Mine (Portugal): Expanding existing tungsten production capacity.
• Sangdong Molybdenum Project (South Korea): Supporting exploration activities in the vicinity of the established site.
• General Corporate Purposes: Bolstering working capital and enhancing operational flexibility.

The company has stated it does not currently plan further capital measures under its existing base prospectus, indicating that financing for its ongoing investment program is now largely secured.

Operational Leadership and Mine Readiness

Executive Appointment with Strategic Expertise

Effective December 1, Almonty appointed retired Brigadier General Steven L. Allen as its new Chief Operating Officer. Allen brings 33 years of leadership experience from the U.S. Army, including a tenure in Korea—a crucial market for Almonty due to the Sangdong operation.

CEO Lewis Black described the appointment as a "strategic investment in operational leadership and excellence," aligning with the company's next growth phase centered on bringing Sangdong online.

Sangdong Nearing Production Phase

According to company reports, construction at the Sangdong tungsten mine in South Korea is substantially complete, with the ramp-up phase now underway. The current focus is on final commissioning and the transition to commercial production.

At full capacity, Sangdong is projected to supply over 80% of the world's tungsten production outside of China. This would elevate Almonty to a key supplier for Western defense and technology corporations seeking secure sources.

Financial Performance and Market Valuation

Enhanced Liquidity Position

As of the end of the third quarter in 2025, Almonty held cash and cash equivalents of US$111.6 million. The gross proceeds from the latest offering of US$129.375 million significantly strengthen this liquidity, providing a buffer for further project development, most notably at Sangdong.

Revenue Growth Amidst Investment Phase

For Q3 2025, revenue increased by 28% year-over-year to US$8.7 million, driven by higher tungsten prices and stable output from the Panasqueira mine.

Despite this top-line growth, Almonty continues to report net losses, which totaled approximately US$65 million over the past twelve months. These losses are primarily attributed to substantial investments related to commissioning Sangdong and advancing the broader project portfolio.

Listed on Nasdaq, Almonty currently carries a market valuation of around US$1.5 billion. Its share price has advanced more than 370% year-to-date, fueled by tungsten's growing strategic importance in the context of geopolitical tensions and supply chain security.

Tungsten's Critical Strategic Role

Tungsten is increasingly recognized as a critical mineral for defense and high-tech applications. Amidst escalating tensions with China, which currently dominates global tungsten production, Western nations are prioritizing the security of non-Chinese supply sources.

Almonty explicitly positions its output as "conflict-free," targeting both ESG requirements and the compliance mandates of defense and technology firms that depend on transparent, ethical supply chains.

From an analyst perspective, D.A. Davidson maintains a Buy recommendation. On November 13, 2025, the firm raised its price target from US$11 to US$12 per share. The average analyst consensus price target stands near US$10.74, suggesting further potential upside from current trading levels.

Strategic Outlook for the Coming Year

Entering 2026 with a reinforced balance sheet, Almonty's immediate priority is the full commissioning and production ramp-up at Sangdong. Concurrently, its entry into the U.S. market via the Montana project gains strategic relevance, aligning closely with the U.S. government's critical minerals strategy.

Operationally, the next significant marker will be the fourth-quarter 2025 financial results, expected in early 2026. Furthermore, the schedule and pace of Sangdong's production increase, along with potential off-take agreements with Western defense contractors, will provide crucial indicators of how swiftly the current investment program will translate into rising earnings.