Almonty Locks In Sandvik Offtake as Sangdong Phase II Takes Shape

Almonty advances Sangdong Phase II toward 2027, signs a Wolfram tailings offtake with a USD 3.0 million advance, as Stifel and Goldman split on valuation.

Almonty Industries used a shareholder letter and a broad operational update on Tuesday to sketch out where its tungsten portfolio stands — and the picture spans three continents, from an underground mine in South Korea to tailings on the Iberian Peninsula and a joint venture in Rwanda.

At the center of the briefing is Sangdong, the South Korean asset the company is positioning as its flagship. Phase I is already producing, and work on Phase II is advancing on schedule, with management targeting full completion of that second stage in 2027. The build-out marks a significant milestone in the ramp-up at the site: on September 23, Almonty reported the first tungsten output at Sangdong since 1993. The property is regarded as the linchpin of the company's operating portfolio as it works toward standing on its own in tungsten concentrate supply over the medium term.

Phase II involves underground development at Yeongwol, where Almonty is expanding the below-surface infrastructure. According to media reports, the concentrate recovered there is destined for international industrial customers. The first phase already has long-term demand locked in — more than 90 percent of Phase I production is committed under a 21-year offtake agreement.

Iberian Tailings Deal Brings Cash Up Front

Underpinning the Korean progress is a binding, multi-year offtake contract signed roughly two weeks ago with Wolfram Bergbau und Hütten AG, a subsidiary of the Sandvik group. That agreement covers the processing of tailings material from the Los Santos mine and carries a conditional one-time advance payment of USD 3.0 million. For Almonty, the deal secures committed volumes while opening up extra financial headroom from the economic recovery of existing tailings stock. The contract covers at least around 1,720 tonnes of WO?.

Beyond Korea and Iberia, management is pursuing additional sites to broaden supply outside China. Those efforts include a planned production expansion at Panasqueira and a tungsten joint venture agreed with Rwanda more than a month ago. Under that partnership, the Rwandan government holds a 25 percent stake in Almonty Rwanda, with Almonty retaining 75 percent.

Analysts Split on Valuation

The strategic moves have drawn a divided response from the analyst community. Stifel initiated coverage about a week ago with a Buy rating and a USD 25 price target. Analyst Brock Cannon pointed to commercial production at Sangdong and Chinese export controls as the basis for the call. A day earlier, Goldman Sachs had assigned the stock a Neutral rating with a USD 13 target, citing the valuation level against prevailing market conditions.

On the corporate side, Almonty also changed auditors on Tuesday, appointing PricewaterhouseCoopers LLP as its new independent auditor. The company stressed that the audit reports for 2024 and 2025 were unqualified and that no discrepancies had arisen.

The stock closed yesterday at EUR 11.62. It currently trades at EUR 11.63, up 46 percent since the start of the year, though the price sits 44 percent below its 52-week high. Over the trailing twelve months, the shares have gained 127 percent.