Almonty Industries Enters Critical Production Ramp-Up Phase

Almonty CA0203981034

Almonty Industries is poised to begin 2026 from a position of significant strength, following a transformative year. The company’s flagship Sangdong tungsten project in South Korea has now transitioned from development into active mining operations, a pivotal milestone achieved in mid-December. This sets the stage for the first quarter of 2026, which will test the company's ability to successfully ramp up to full commercial output.

The operational shift was marked on December 16, when the first truckload of ore from the Sangdong mine was moved to the run-of-mine pad. This event formally concluded the development phase and initiated active operations, the final step before commercial production begins.

The deposit's key metrics underscore its potential:
* Reserves: 7.9 million tonnes of ore
* Average Grade: 0.47% WO₃ (tungsten trioxide)
* Contained Metal: 3.7 million metric tonne units (MTU)
* Grade Advantage: The company states the average grade is approximately three times higher than that of comparable global projects.

The processing plant is mechanically complete, with the dryer section currently undergoing commissioning. Initial recovery rates have reportedly exceeded historical benchmarks significantly. The full ramp-up to an annualized ore processing capacity of approximately 640,000 tonnes is scheduled for Q1 2026.

CEO Lewis Black characterized the initial ore placement as a strategic turning point for Almonty’s objective of bolstering the global tungsten supply chain.

Geopolitics Underpin a Western Supply Mandate

The project’s significance is magnified by shifting trade policies. Starting in January 2027, the U.S. Department of Defense intends to exclude tungsten sourced from non-allied nations, including China and Russia, from its procurement. China currently dominates the market, controlling over 80% of global supply.

At full capacity, Sangdong is projected to supply more than 80% of the tungsten produced outside of China. This positions Almonty as a crucial supplier for Western defense, semiconductor, AI hardware, and aerospace industries.

Recent corporate moves align with this strategic focus:
* Executive Appointment: In December 2025, retired Brigadier General Steven L. Allen was appointed Chief Operating Officer, tasked with optimizing supply chains for strategic partners.
* U.S. Expansion: The company acquired the Gentung Browns Lake tungsten project in Montana for USD 9.75 million in November 2025, with production start-up anticipated in the second half of 2026.
* U.S. Listing: Almonty completed an initial public offering on the NASDAQ in July 2025, raising USD 90 million and establishing it as the company’s primary exchange.

A Fortified Financial Position

Almonty enters the new year with a substantially reinforced balance sheet. Following its NASDAQ debut, the company completed a USD 129.4 million capital raise in December 2025, led by Bank of America. The offering was oversubscribed, with underwriters exercising the full over-allotment option, attracting long-term oriented U.S. institutional investors.

According to CEO Black, the company is now fully financed for its current plans with no immediate need for further capital. Proceeds are allocated to:
* Final commissioning and production ramp-up at Sangdong
* Exploration at the Gentung Browns Lake project in Montana
* Expansion of the Panasqueira mine in Portugal
* A drilling program for the molybdenum resource at Sangdong

Almonty’s current market capitalization stands at approximately CAD 3 billion.

The "Korean Trinity" Long-Term Vision

Looking ahead, Black outlines a long-term strategy termed the "Korean Trinity." This vision aims to create an integrated value chain for strategic minerals within South Korea, connecting tungsten mining at Sangdong with a planned tungsten oxide processing facility and the development of the site's molybdenum resource. The goal is to establish Korea as a global hub for tungsten extraction, refining, and processing.

Q1 2026: The Operational Proving Ground

The first quarter of 2026 represents a critical operational test. Key milestones include:
* Commissioning of the crushing, grinding, and flotation circuits
* Achieving stable throughput rates
* Ramping up to fulfill existing offtake agreements
* Transitioning to commercial production in the first half of the year

Analysts note reduced project risk following the initial ore delivery. DA Davidson maintains a USD 12.00 price target, while Sphene Capital has set a target of CAD 13.50.

The next significant catalyst will be the release of Q1 2026 financial results in May. This report will provide the first concrete production statistics from Sangdong's ramp-up phase, offering a measurable assessment of the company's operational execution.