Almonty's 21-Year Supply Pact with GTP Signals a New Phase for the Tungsten Producer
Published on 08/30/2026 at 14:12 | Editorial boerse-global.de
The timing could hardly be more pointed. Just days after Almonty Industries shifted its Sangdong mine in South Korea from development into commercial production, Washington slapped a one-year export ban on tungsten scrap and battery waste. The move, enacted Thursday by the US Commerce Department, is designed to lock down strategic materials for American defense and semiconductor supply chains — and it places Almonty squarely in the crosshairs of buyers seeking non-Chinese sources of the metal.
The company's response has been swift. Almonty has expanded its binding offtake agreement with Global Tungsten & Powders Corp (GTP) from 15 to 21 years, boosting contracted volumes by 40 percent to 4.41 million MTU. For a producer that has only just entered the commercial phase, such a long-term commitment sends a clear signal to capital markets: revenue visibility stretching more than two decades, with reduced exposure to year-to-year price swings.
A Pullback That Tells Only Half the Story
The share price reaction on Friday was initially supportive, then gave way to profit-taking. The stock closed at €15.57, down 3.9 percent on the day, with a seven-day decline of 1.8 percent. Yet those numbers look modest against the broader trajectory: the shares have gained 63 percent over the past month and have nearly doubled since the start of the year.
Media reports suggest automated valuation models had recently flagged the stock as significantly overvalued, downgrading their technical rating from "Buy" to "Hold." That assessment, however, carries limited weight given the wave of fundamental news over recent weeks.
No company-specific catalyst explained Friday's dip — neither a fresh corporate announcement nor a sector-wide event. The tungsten market itself has been stabilising after the sharp rally of prior months, with Chinese domestic prices for ammonium paratungstate pulling back from their July peak while the Western reference price in Rotterdam holds at elevated levels.
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Consolidating on the Nasdaq
The Toronto delisting, effective July 31, now sits roughly a month in the rearview mirror — and the stock has climbed 61.6 percent since. Yesterday marked the final step in the exchange consolidation, with Almonty completing its exit from the Australian bourse. Trading is now concentrated on the Nasdaq under the ticker ALM, with a secondary listing in Frankfurt under ALI1.
This is a structural repositioning rather than an operational event. Almonty is deliberately aligning its trading infrastructure with US investors — precisely the constituency that stands to benefit most from Washington's push to secure domestic tungsten supply. The company's broader capital strategy has moved in parallel: a convertible bond raised $800 million in July, followed by a shelf registration of nearly $247 million filed in August, both laying groundwork for the second expansion phase at Sangdong.
The board-approved buyback program of up to $300 million remains in place, a signal that management sees value in its own stock even after the dramatic run-up — particularly now that regulatory tailwinds and operational progress at Sangdong are converging.
Technicals Point to Consolidation, Not Reversal
With a relative strength index of 60.8 and the share price sitting 18 percent above its 50-day moving average, the stock shows no signs of overheating — though it still trades roughly a quarter below its 52-week high of €20.61, reached in mid-April. The gap to that peak stands at 24 percent, while the shares have more than quadrupled from their September 3 low of last year.
Annualised volatility of 92 percent on a monthly basis underscores just how nervy trading in this name remains — a pattern that has persisted since the Sangdong production ramp began. The recent pullback, then, looks less like a trend reversal and more like a pause for breath after a remarkable rally. Institutional interest continues to build, with the Public Employees Retirement System of Ohio disclosing a $1.81 million stake in the company.
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The twelve-month gain of 310 percent has been driven by a confluence of factors: the transition from developer to producer, quarterly results, the expanded offtake agreement, and the capital markets activity that now supports the next stage of growth. Whether those gains prove durable will depend on how successfully Almonty can execute the second phase of Sangdong's expansion — and whether the political tailwind from Washington translates into sustained demand for non-Chinese tungsten.
