Almonty Shares Surge on Defense Sector Contracts and Production Milestones

Almonty CA0203981034

Almonty Industries Inc. witnessed a dramatic share price appreciation exceeding 28% during the previous trading week, breaking out to record highs. This rally coincides with the company's strategic evolution from a project developer to a producer of critical materials, fundamentally altering its investment risk profile. Market participants are focusing on a powerful combination: secured production capacity and long-term off-take agreements specifically for defense applications.

A key de-risking event has been the commencement of active mining operations at the Sangdong tungsten mine in South Korea in December 2025. This transition from development to production removes a significant layer of uncertainty. The company is now in the final stage before achieving full-scale output, with immediate focus on ramping up Phase 1. A clearly defined plan is also in place to expand to Phase 2, targeted for completion by 2027. At full capacity, Sangdong is projected to produce approximately 460,000 metric tonne units (MTU) annually—a volume capable of supplying a substantial portion of the non-Chinese tungsten market.

Strategic Contracts Reshape the Investment Thesis

The primary catalyst for the recent re-rating is the confirmation of long-term supply agreements for applications within the U.S. defense sector. Almonty's CEO, Lewis Black, has characterized these as "hard floor" contracts, establishing a reliable revenue base for tungsten oxide from Sangdong. These agreements directly address a pressing supply chain vulnerability for Western nations. Starting in 2027, a U.S. prohibition on using Chinese tungsten in defense systems takes effect, positioning Almonty as a vital alternative supplier. This geopolitical dynamic is increasingly reflected in the equity valuation, which is shifting away from traditional mining multiples and toward a premium for strategic supply security.

Key Operational and Financial Pillars

The current valuation is supported by several concrete achievements that enhance visibility:

• Confirmed Production: Active mining at Sangdong is underway, with ore delivery to the run-of-mine pad having commenced.
• Geographic Diversification: The acquisition of the Gentung Browns Lake tungsten project in Montana strengthens Almonty's near-U.S. supply chain capabilities.
• Robust Financing: Capital measures totaling approximately $219 million secure the funding for both expansion and operational ramp-up.
• Market Position: The firm is established as one of the largest Western-oriented tungsten producers outside of China.

Collectively, these factors substantially reduce project execution risk and make the planned production increases far more tangible.

Favorable Market Backdrop and Forward Path

The equity's upward trend is unfolding within a transformed tungsten market. Metal prices soared over 160% in the past year, driven by export restrictions and supply deficits—a macro environment from which Almonty directly benefits. The confluence of high spot prices, contractually secured minimum prices for defense-related material, and a funded path to higher volumes creates a pronounced growth profile.

The stock is currently in a confirmed breakout pattern. Its successful uplisting to the NASDAQ and inclusion in broader indices are enhancing liquidity and improving access for institutional investors. Over the coming quarters, market attention will center on progress reports detailing Sangdong's operational ramp-up and the company's advancement toward its goal of supplying roughly 40% of the non-Chinese tungsten market.