Almonty Industries Achieves Key Milestone with First Ore at Sangdong

Almonty CA0203981034

Almonty Industries has successfully transitioned from project developer to active producer, marking a fundamental shift in its risk profile. The company confirmed the delivery of the first ore to the run-of-mine pad at its Sangdong tungsten mine in South Korea, an operational milestone that triggered a double-digit share price rally as investors celebrated the reduced execution risk.

The commencement of operations at Sangdong carries significant geopolitical weight. With China currently controlling over 80% of global tungsten supply, this project establishes a primary non-Chinese source for Western supply chains. Tungsten is a critical metal for several high-value strategic industries, including defense, semiconductor manufacturing, hardware for artificial intelligence (AI), and aerospace.

Financially, the production start rests on a solid foundation. Following a capital raise of approximately $129 million on December 11, the company states the project is fully funded. No further capital measures are currently planned. Revenue visibility is supported by a 15-year offtake agreement, securing long-term income streams.

Market and Analyst Reaction

The market responded immediately to the news of the operational breakthrough. Almonty's shares advanced 12.1% following the announcement, as the market priced in the successful transition from exploration speculation to operational execution. The delivery of ore to the processing area represents the final technical step before full-scale commercial production.

Separately, the investment research platform Seeking Alpha initiated coverage on the company with a "Buy" recommendation, citing the start of production as a key catalyst.

Project Overview and Forward Vision

The Sangdong mine hosts one of the world's largest tungsten deposits, with a resource of 8.57 million tonnes. The company's focus is now on ramping up production in South Korea.

Looking ahead, Almonty is already advancing its expansion strategy. The company is progressing its "Gentung" project in Montana, USA, which is targeted to be production-ready in the second half of 2026. The broader corporate objective is to establish South Korea as a global tungsten hub independent of Chinese influence.

For investors, the focus in coming quarters will shift away from exploration risks toward production efficiency and the generation of tangible cash flows.