Almonty Upgrades GTP Offtake Deal with 40% Volume Jump and Better Pricing as Sangdong Output Rises

Almonty secures 21-year contract with Global Tungsten & Powders, boosting volumes by 40% and pricing by 6.3%, projected US$490M value as Sangdong mine ramps up.

Almonty Industries has significantly expanded its existing supply agreement with Global Tungsten & Powders (GTP), locking in higher volumes and improved pricing for tungsten concentrate from its Sangdong mine in South Korea. The contract extension, announced on Tuesday, transformed what was a 15-year commitment into a 21-year arrangement stretching into the late 2040s. The stock responded immediately, climbing 5.23% to C$22.35, recovering from the prior session’s close of C$21.24.

The revised terms call for Almonty to deliver 4.41 million metric tonne units of tungsten concentrate over the life of the contract, a 40% increase from the original 3.15 million MTU. On top of the volume boost, the pricing formula per unit has been enhanced by 6.3% across the entire duration. At current market prices, the additional annual revenue attributable to the improved conditions is estimated at roughly US$30 million, bringing the total projected value of the contract to approximately US$490 million over 21 years.

The deal covers about 90% of Phase I production from Sangdong, where Almonty began processing operations on 1 July 2026. That milestone shifted the asset from development to revenue-generating status. The processing plant produces high-purity tungsten concentrate of the exact grade GTP requires. Importantly, the current agreement does not include a planned Phase II expansion at Sangdong – which would roughly double processing capacity – nor does it involve Almonty’s other producing mines in Portugal and Spain, leaving room for future off-take deals.

For Almonty, the extended commitment from a major western tungsten processor provides rare visibility into long-term cash flows. GTP, headquartered in Towanda, Pennsylvania, is one of the largest tungsten powder manufacturers outside China and supplies defence and industrial end markets. The expanded order book is particularly valuable during Sangdong’s production ramp-up, as it reduces the risk of unsold inventory and strengthens the company’s financing profile.

The contract upgrade coincides with a period of sustained strength in tungsten prices. Concentrate prices have surged from around US$900 per MTU in early 2025 to above US$3,100 today, driven by defence modernisation, semiconductor demand and tighter global supply. Almonty’s improved pricing lock-in allows it to capture more of that upside as Sangdong approaches full Phase I capacity, where minimum guaranteed deliveries will be 210,000 MTU annually.

Despite the positive news, the stock remains volatile. The share price still sits roughly 33% below its 52-week high of C$33.35 set on 17 April 2026. Over the past month, the equity has dropped 10.78%, and it currently trades below both its 50-day moving average of C$25.12 and its 100-day average of C$25.43. The 30-day annualised volatility stands at 98.33%, with the relative strength index at 45.4 – neutral territory.

The longer-term trend, however, is decisively upward. Year-to-date returns come in at 85.79%, while the 12-month gain is 242.79%. At C$22.35, the stock still trades 18.74% above its 200-day moving average of C$18.82, suggesting that the fundamental trajectory remains intact even as short-term noise dominates.

The GTP deal marks another operational milestone for Almonty as it transitions from mine developer to full-fledged producer. The combination of extended contract duration, higher volumes and better pricing gives the company a multi-decade revenue foundation – provided Sangdong’s Phase I output can consistently deliver the promised volumes in the months ahead.