Almonty Industries: Capital Restructure Meets Geopolitical Windfall

Almonty Industries hits record high as its Korean tungsten mine opens amid a 534% price surge and a key US defense offtake deal, positioning it as a critical non-Chinese supplier.

Almonty Industries is navigating a pivotal moment, propelled by a staggering 689% annual share price surge to a new all-time high of CAD$30.66. This meteoric rise coincides with two converging forces: an impending corporate restructuring and a geopolitical shift creating an unprecedented market opportunity for its core product—tungsten.

The company is poised to execute a reverse stock split, authorized by shareholders at a ratio of up to five-to-one. Management holds the discretion to finalize the exact ratio and timing, with a firm deadline for implementation set for April 30, 2026. This move will drastically reduce the number of outstanding shares, proportionally increasing the share price and potentially altering the stock's liquidity and appeal to institutional investors. Further details on the future capital structure are anticipated at the Annual General Meeting on June 8.

Operationally, Almonty is hitting its stride at a remarkably fortuitous time. Its flagship Sangdong mine in South Korea commenced operations in mid-March, with the processing plant officially opening on April 1. Designed to process approximately 640,000 tonnes of ore annually, the facility is expected to yield 2,300 tonnes of tungsten concentrate. The commercial production start in Q2 2026 aligns perfectly with a historic price explosion.

The spot price for Ammonium Paratungstate (APT) has skyrocketed by 534% year-over-year, reaching an average of $2,250 per tonne. This surge is driven by severe supply constraints and a rapid increase in military demand. Tungsten is a critical component for armor-piercing munition and advanced aerospace technology. Geopolitical tensions are intensifying the crunch, with the U.S. set to ban imports of Chinese tungsten for defense goods starting January 1, 2027. Given that China currently controls over 80% of global production, this policy is expected to tear a massive hole in Western supply chains.

Here, Almonty has secured a decisive strategic advantage. The U.S. government has officially exempted the company's tungsten products from new punitive tariffs. This positions Almonty as a key builder of non-Chinese supply chains. The company has already locked in a binding offtake agreement with Tungsten Parts Wyoming, guaranteeing a monthly supply of at least 40 tonnes of tungsten oxide exclusively for U.S. defense systems, including missiles, drones, and ammunition. This strategic focus is bolstered by the boardroom presence of retired Four-Star General Gustave Perna.

Financially, the company is well-equipped for expansion. Its treasury holds a robust CAD$268.4 million, bolstered by recent capital raises. Revenue also grew by 13% in the last fiscal year. While a net loss of approximately $162 million was reported, management attributes this to non-cash accounting adjustments triggered by the extreme rise in its own share price, which has climbed nearly 155% since the start of the year alone.

The coming months will deliver concrete proof of operational progress. In May, Almonty will release the first quarterly production data from Sangdong, which boasts a tungsten trioxide grade of 0.51%—triple the global average. Looking ahead, the company is already planning its next phase of growth. The AGM in June is expected to detail a Phase-2 expansion for Sangdong, aiming to double capacity to 1.2 million tonnes per year by 2027. Furthermore, the Gentung Browns Lake project in Montana is slated to come online in the second half of 2026, adding 140,000 MTU of capacity and marking what would be the first domestic U.S. tungsten production in over a decade.