Almonty Wins Dual Analyst Backing as Sangdong Joins Rwanda and Spain in a Three-Continent Tungsten Push

DA Davidson and Jefferies back Almonty Industries as Sangdong's tungsten plant clears final certification and offtake deals lock in demand.

Almonty Industries is drawing a fresh round of buy-side attention, with two investment houses now championing the stock on the strength of its shift from mine developer to fully integrated producer of a critical industrial metal.

DA Davidson restated its "Buy" rating on September 17, attaching a 33.00 US-dollar price target to the shares. The call followed Jefferies Financial Group's September 2 initiation of coverage, which also landed on a buy recommendation, this one with a 26.25 US-dollar target. The two notes frame a company whose execution on the ground is steadily eroding the delivery risk that has long hung over tungsten projects.

That operational momentum spans three continents. In South Korea, the processing plant at the Sangdong mine received its final operating certification for commercial output of tungsten concentrate roughly a week ago, a green light that also extends to the mine's crushing facilities. Those regulatory sign-offs clear the way for regular sales and mark the commercial readiness of Sangdong Phase I — the planned handover from construction to routine marketing.

Offtake Agreements Lock In Demand

Underpinning the ramp-up is a web of binding supply contracts that give Almonty visibility on where its concentrate will go. More than a month ago, the company widened a long-term offtake arrangement with Global Tungsten & Powders LLC, part of the Plansee Group. That deal now runs 21 years from first delivery and covers a total volume of 4,410,000 MTU of tungsten concentrate — enough to account for more than 90 percent of Sangdong's first production phase.

A second agreement reaches into Europe. Almonty struck a multi-year offtake for reprocessing the tailings at its Los Santos mine in Spain with Wolfram Bergbau und Hütten AG, a Sandvik Group subsidiary. That contract guarantees the purchase of at least about 1,720 tonnes of WO? and carries a conditional advance payment of 3 million US dollars, injecting extra liquidity before full operations resume. For a sector where price swings are routine, such firm commitments serve as ballast, smoothing near-term volatility and giving management a firmer planning base.

Rwanda Takes a 25 Percent Stake

Almonty's footprint widened on the African continent as well, through a partnership that hands the Rwandan state a 25 percent interest in Almonty Rwanda Pty Ltd. In exchange, the country contributes the Shyorongi tungsten exploration concession along with a mineral processing licence, leaving Almonty with the remaining 75 percent. Reuters reported that the venture is aimed at jointly developing Rwanda's tungsten resources.

The combination of new mining sites, reprocessing of existing stockpiles and government partnerships has kept market interest running high. The stock closed yesterday at 12.54 euros, bringing its gain since the start of the year to 58 percent. At a current price of 12.62 euros, the advance stands at 59 percent year to date.