Almonty's Tungsten Calculus: Washington's Supply Curbs Land as Sangdong Finally Delivers Ore
Published on 08/26/2026 at 07:21 | Redaktion boerse-global.de
The timing could hardly be more convenient. Just as Almonty Industries' Sangdong mine in South Korea's Gangwon province transitions from a decade-long development story into a revenue-generating operation, Washington is moving to choke off tungsten scrap exports. The one-year US restriction, effective August 27, requires all monthly scrap sales to be directed to domestic buyers in an effort to harden American defense supply chains — a policy shift that elevates the strategic value of every tonne of non-Chinese tungsten production.
A Producer Emerges From the Construction Phase
Sangdong has been feeding ore through its newly commissioned processing plant since the start of July, marking the moment the former development asset finally began generating sales. The operational milestone had been anticipated by shareholders for years, and the financials are already reflecting the shift. Second-quarter revenue climbed sharply year-on-year, with the mining division posting an operating gross margin above 60 percent for the first time.
The demand picture underpinning that margin is structural rather than cyclical. Tungsten applications tied to artificial intelligence infrastructure are growing, while ex-China supply remains critically thin — industry estimates suggest non-Chinese capacity covered only about 37 percent of global demand in 2025. Against that backdrop, the US export curbs add a geopolitical premium to an already tight market.
Contract Expansion Locks in Pricing Power
Almonty moved to cement its position in mid-July, extending its long-term offtake agreement with Global Tungsten & Powders by six years. The contracted volumes rise by 40 percent, and pricing terms improve by roughly 6.3 percent — a combination that gives the company visibility over a substantial portion of future Sangdong output just as the plant ramps.
The Chinese tungsten market, meanwhile, is sending mixed signals. Long-term procurement offers for wolframite and scheelite concentrates in Guangdong were raised by 1,000 yuan per tonne, while ammonium paratungstate (APT) offers were cut by 6,000 yuan per tonne. That divergence points to uncertainty in price discovery along the processing chain — an awkward moment for Beijing as Washington pushes to reduce its reliance on Chinese supply.
While geopolitical shifts reshape critical supply chains, workplace safety remains a constant legal obligation. Many UK employers underestimate the risks they face daily — and the costly consequences of missing documentation. A free toolkit with 41 ready-to-use templates and checklists helps you identify hazards and stay compliant. Download the free Risk Assessment Toolkit
A Streamlined Listing Structure Takes Shape
The operational transformation is running in parallel with a corporate simplification. Trading on the Toronto Stock Exchange ended in late July, and the ASX delisting in Australia is scheduled for September 1, with CHESS Depositary Interests suspended at Friday's close. The final trading day for those instruments is August 28.
Management's rationale is straightforward: liquidity has migrated to the Nasdaq, where the shares trade under "ALM," supplemented by the Frankfurt listing under "ALI1." Australian register holdings had dwindled to under one percent of outstanding shares, so the withdrawal is unlikely to materially affect tradability.
The financial foundation supporting this transition was reinforced in June with a convertible bond issuance of US$800 million — oversubscribed and well received by institutional investors. That was followed by inclusion in the Russell 1000 and Russell 3000 indices at the end of June, a development that could attract additional institutional buying.
Buyback Adds a Floor, But Volatility Remains the Rule
The US$300 million share repurchase program announced last month continues to hover in the background as a price support, with the stock up about 3 percent since its launch. The shares changed hands at €16.05 on Tuesday, following a €15.59 close the prior session — roughly 21 percent above the 50-day moving average and a staggering 383 percent above the 52-week low of €3.33.
That distance from the lows underscores the extraordinary run the equity has enjoyed. Year-to-date gains stand at 104 percent, with a 30-day advance of 37 percent. Even so, the current price sits about 21 percent below the 52-week high of €20.61 reached in late April. The annualized 30-day volatility of 92 percent serves as a reminder that this is a stock that moves hard in both directions.
The technical picture remains constructive — the shares trade comfortably above all key moving averages — but the coming weeks will test whether the combination of US export restrictions, Sangdong's production ramp, and the streamlined listing structure can translate into more stable pricing further up the tungsten value chain. The direction of Chinese APT quotes, which have recently softened, will offer the clearest signal on that front.
