Almonty's Sangdong Ramp-Up Takes Shape as Buyback, Auditor Swap and Ontario Settlement Redraw the Map

Almonty designs Sangdong Phase II for up to 1.2M tonnes annually by 2027, buys back 2.9M shares, names PwC auditor and settles Ontario case.

Almonty Industries is pressing ahead on two fronts at once: scaling its flagship South Korean tungsten operation toward full commercial output while tidying up its corporate structure through a sizable share repurchase, a change of auditor and the quiet resolution of a Canadian legal spat.

The company confirmed on Friday that Phase II of the Sangdong expansion is being designed around an annual processing capacity of up to 1.2 million tonnes, with completion targeted for 2027. The groundwork for that second stage is already running in parallel with the gradual commissioning of the existing plant, a setup intended to position Sangdong as one of the leading tungsten suppliers outside China over the long haul.

Mill Running 13 Hours a Day, With 24 in Sight

For now, the processing facility at Sangdong operates 13 hours per day. Management's stated goal is to stretch that to a full 24-hour schedule. The ramp-up is meant to serve both South Korean domestic supply and the company's export ambitions worldwide.

The restart itself is a milestone Almonty had not reached since 1993. Roughly a week ago the company reported its first tungsten concentrate production at the site, a development that has since lifted the share price by about 3.5%. The trigger was regulatory: South Korean authorities issued the inspection certificates for the processing and crushing circuits, formally clearing commercial operation and the sale of concentrate. According to the Yonhap news agency, a first saleable concentrate package weighing roughly one tonne has been prepared for shipment, and the company says initial batches stand ready for export.

$48 Million Repurchase, Shares to Be Cancelled

On the capital markets side, Almonty disclosed on 29 September the acquisition of 2,914,739 of its own common shares for approximately $48 million. All of the repurchased stock is to be cancelled in full, permanently shrinking the total number of shares outstanding — a move that can bolster each remaining holder's proportional claim on the business.

The equity has been drawing close attention from traders. Almonty's stock last changed hands at EUR 12.04, up 1.1% on the day. Since the first concentrate was produced at Sangdong a little over a week ago, the shares have added 3.4%.

PwC Takes Over the Audit Mandate

Governance changes accompanied the operational news. Effective 29 September, Almonty appointed PricewaterhouseCoopers LLP as its new auditor, following the resignation of Zeifmans LLP from the engagement. PwC will serve until the next annual general meeting. Management said the switch was not prompted by any disagreement over accounting, audit scope or disclosure.

Ontario Dispute Ends With a Correction

Legal clarity also arrived from Canada. Under a settlement, Pure Tungsten published a formal correction on Friday stating that Tiger Kim never held an executive, senior officer or director role at Almonty at any point. His work as an independent contractor had already ended on 31 December 2015. The statement followed proceedings Almonty had brought in the province of Ontario seeking a retraction of earlier claims.

Stifel Opens Coverage With a Buy

Adding to the mix, analysts at Stifel initiated coverage on 24 September with a buy rating and a price target of $25.00.

With the legal matters behind it and the audit transition settled, Almonty's attention turns to execution: reaching full shift operation at Sangdong and keeping Phase II on track for its 2027 deadline.