Almonty Industries Reaches Key Milestone with First Ore Production at Sangdong

Almonty CA0203981034

Almonty Industries has transitioned from developer to producer this week, marking a pivotal moment for the company and its investors. The active extraction of ore has commenced at its flagship Sangdong tungsten mine in South Korea, a move that triggered a significant market response. On Tuesday, the company's shares advanced approximately 9%, closing near CAD $10.99.

The delivery of the first truckload of ore to the Run-of-Mine (ROM) pad represents the final operational step before full-scale commercial production begins. This shift materially de-risks the project, moving it conclusively from the construction phase into operations.

Lewis Black, Almonty's Chief Executive Officer, characterized this as a strategic inflection point. He emphasized Sangdong's role as a future cornerstone for a global, non-Chinese tungsten supply chain. Investor sentiment reflected this optimism, with trading activity showing notable characteristics:

• The stock reached an intraday high around CAD $11.00.
• It settled at a closing price of CAD $10.99, representing a gain of more than 9% over the previous session.
• Trading volumes increased on both the TSX and Nasdaq, with participation from institutional investors.

Financial Foundation and Broader Recognition

This operational progress is supported by a recently strengthened balance sheet. In early December, Almonty completed an upsized public offering in the United States, raising gross proceeds of approximately $129 million. These funds are earmarked to finance the ramp-up at Sangdong and to advance other projects, such as the Gentung Browns Lake initiative in Montana.

Further validation comes from the company's inclusion in the VanEck Rare Earth/Strategic Metals ETF (REMX). Membership in this index is anticipated to generate passive fund inflows and enhance the stock's liquidity, potentially providing stability as the company transitions to a revenue-generating entity.

Positioning in a Critical Materials Market

The start of production is timely, coinciding with heightened global focus on supply security for critical minerals. China currently controls over 80% of the world's tungsten supply—a metal vital for defense, aerospace, and semiconductor applications. Western nations are actively seeking diversified sources, elevating the strategic importance of assets like Sangdong.

Ranked among the world's largest and highest-grade tungsten deposits, Sangdong is central to Almonty's "Korean Trinity" strategy. This integrated model combines the mine with a downstream tungsten oxide plant and a separate molybdenum project. Investors are particularly valuing the strategic worth of a long-life asset located in South Korea, a consideration given potential shifts in U.S. trade policy that could involve new tariffs or restrictions.

From a technical perspective, the share price has recovered from earlier volatility. After hitting a 52-week high of CAD $14.99 in October, it consolidated around the CAD $10.00 level. This consolidation zone has now served as a base for the recent upward move. Current trading in the CAD $10.80–$11.00 range suggests the market is increasingly pricing in anticipated near-term cash flows rather than pure development potential.

The Path Forward: Execution is Key

Attention now turns to the performance of the processing plant in the coming months. The next critical milestone is the successful processing of stockpiled ore through grinding and flotation circuits to produce saleable tungsten concentrate.

Market analysts express confidence, seeing further potential once the mine reaches its planned capacity. This broadly positive outlook is rooted in expectations for substantial cash flows beginning in 2026. Technically, the stock has overcome key resistance around CAD $10.50; a sustained hold above CAD $11.00 could pave the way for a retest of the October highs, especially when initial production figures are released in Q1 2026.

In the immediate weeks, updates on processing recovery rates and concentrate shipping schedules are likely to be key price drivers. These operational details will provide concrete evidence of Sangdong's successful ramp-up and its emerging earnings power.