Almonty's Sangdong Restart Shifts From Milestone to Ramp-Up Test

Almonty produced first tungsten concentrate at Sangdong since 1993; Goldman Sachs started coverage at Neutral with a USD 13.00 target.

Seven days a week, thirteen hours a day. That is the current rhythm at Almonty Industries' Sangdong mill in South Korea, and it captures the central question facing the tungsten producer: how quickly can a mine that sat idle for three decades settle into round-the-clock commercial operation?

The stock closed Friday at EUR 11.91. Since the start of the year it has gained 50 percent, though the past 30 days have shaved 22 percent off the price — a pullback that has done little to cool the broader debate about what the shares are actually worth.

First Concentrate Since 1993

On September 23, Almonty confirmed the first tungsten production at Sangdong since 1993. South Korea's Yonhap news agency reported that saleable concentrate had been produced and prepared for shipment. Management's immediate priority is not headline output but operational consistency — extending run times until the circuit moves from batch processing into continuous operation, the prerequisite for meeting contracted delivery volumes.

That transition from development to steady-state production is widely regarded in the mining sector as the hardest part of the journey. Grinding and separation processes must be fine-tuned, and every technical adjustment carries consequences for how soon nameplate capacity is reached. Phase II development at Sangdong is already underway in parallel, with media reports indicating that customer deliveries will begin once the first phase runs reliably enough to support them.

Goldman Sachs Starts at Neutral

On September 24, Goldman Sachs initiated coverage with a "Neutral" rating and a USD 13.00 price target. The bank's caution rests on two pillars: an expected normalization of tungsten prices, and a ramp-up at Sangdong that it believes will proceed more gradually than the broader market consensus assumes. In Goldman's view, current valuations already discount extraordinary tungsten pricing alongside an aggressive production trajectory.

The supply side of the story extends beyond Korea. On September 17, Almonty signed a long-term offtake agreement with Wolfram Bergbau und Hütten AG, a Sandvik subsidiary, covering the processing of historical tailings — a partnership that complements the primary mining operation rather than replacing it.

Auditor Change and a Legal Clarification

Formal corporate matters have moved in step with the operational ones. Effective September 29, Almonty appointed PricewaterhouseCoopers LLP as its new auditor, succeeding Zeifmans LLP. The filing with the US securities regulator noted no disagreements over accounting or audit procedures surrounding the change.

Separately, the company resolved a legal matter through a settlement under which Pure Tungsten published a corrective statement. That statement made clear that Tiger Kim never held a leadership or board position at Almonty at any point.

What Comes Next

With first milestones now behind it, Almonty's story hinges on execution speed. The company has committed to reaching continuous operations, and the gap between its current seven-day, thirteen-hour schedule and that goal will determine whether contracted volumes arrive on time. For investors who have ridden the stock to a 50 percent year-to-date gain, the coming months will test whether Sangdong's restart was a one-time catalyst or the beginning of a durable production base.