Goldman Sachs Opens Almonty Coverage With Neutral Rating as Buyback and Global Expansion Collide

Goldman Sachs initiated Almonty Industries at Neutral with a USD 13.00 target, as shares fell 7.7% to EUR 11.05 despite production and supply deals.

Almonty Industries finds itself at a crossroads where bullish operational momentum meets a cautious new voice on Wall Street. Shares of the tungsten producer fell 7.7% to EUR 11.05 on the day Goldman Sachs reportedly initiated coverage of the raw materials company, assigning a "Neutral" rating with a price target of USD 13.00.

That lukewarm debut stands in sharp contrast to earlier enthusiasm on the sell side. On September 15, D.A. Davidson reaffirmed its buy recommendation with a USD 33.00 price target, pointing to the company's push into East Africa as the catalyst.

A Three-Continent Production Map Takes Shape

The operational foundation underpinning these divergent views has been firming up across three regions. In South Korea, Almonty recently launched commercial tungsten production after receiving inspection certificates for the mining facilities at its Sangdong project. With those approvals in hand, the company is now authorized to run the processing and crushing plants commercially, marking the official start of Phase I and clearing the way to sell tungsten concentrate both domestically and in overseas markets.

Europe has become the second pillar. On September 17, Almonty signed a multi-year take-or-pay supply agreement for tungsten concentrate with Wolfram Bergbau und Hütten AG, a subsidiary of the Sandvik Group. The contract covers the offtake of at least roughly 1,720 tonnes of contained WO? recovered from reprocessing existing tailings at the Los Santos mine in Spain, and includes a conditional advance payment of USD 3.0 million for the offtake rights.

East Africa rounds out the footprint. Under the name Almonty Rwanda Pty Ltd, the partners agreed to a joint venture in which Almonty holds three-quarters of the shares and the Rwandan government holds one-quarter. Rwanda contributes the Shyorongi tungsten exploration concession along with a mineral processing license. The entity is to source, process and export Rwandan tungsten ore, pre-concentrate and panning tailings. The partnership is tied to the 2025 framework agreement on shared economic prosperity between the United States and Rwanda.

Board Backs Major Capital Return

On the capital markets side, the leadership made its own statement more than a month ago, when the board authorized a share buyback program for 2026. The resolution permits the acquisition of up to 14,400,000 common shares for a total amount of up to USD 300,000,000 — roughly five percent of outstanding shares.

The company's valuation has climbed alongside its operational progress. At a current price of EUR 11.96, Almonty's market capitalization stands at EUR 2.73 billion, and the stock has gained 51% since the start of the year. Whether the newly launched production processes and supply agreements can sustain earnings power at the targeted level will become clear in the quarterly reports ahead.