Almonty Industries Reaches Pivotal Production Phase with Sangdong Mine

Almonty CA0203981034

The transition from developer to producer is now complete for tungsten specialist Almonty Industries. This fundamental shift was triggered by the commencement of commercial operations at its flagship Sangdong mine in South Korea. As geopolitical strains highlight vulnerabilities in critical mineral supply chains, the market is evaluating whether Almonty can emerge as a sustainable challenger to China's long-standing dominance in tungsten.

A solid financial foundation underpins this new chapter. In December, the company bolstered its balance sheet through a financing round that raised gross proceeds of approximately $129 million. Management has stated this capital injection sufficiently funds its plans, with no immediate need for further equity raises. Concurrently, Almonty strengthened its operational leadership by appointing retired Brigadier General Steven L. Allen as Chief Operating Officer. His mandate is to optimize the company's supply chain logistics.

Institutional Investors Build Positions

Market sentiment has reflected this progress. On December 24, Almonty's shares traded on the NASDAQ exchange advanced by nearly 7% on elevated volume. This move appears partly driven by growing institutional interest. During the third quarter of 2025, major investment firms including Telemark Asset Management and Alyeska Investment Group each established new positions in the company valued at almost $8 million.

Equity researchers maintain a constructive outlook. Analysts at DA Davidson and Oppenheimer have both reaffirmed their "buy" ratings, accompanied by price targets of $12.00 per share—a figure representing significant upside from current trading levels.

Sangdong Mine: A Game Changer for Supply

The critical operational milestone was reached in mid-December when the first ore shipment from Sangdong was transported for processing. The material is now undergoing the multi-stage process of crushing, milling, and drying. CEO Lewis Black has characterized this operational transition as a "strategic inflection point" for global supply chains.

The mine's scale is notable. At full capacity, Sangdong is projected to supply over 80% of the tungsten produced outside of China. This output is strategically vital, particularly as the United States has classified tungsten as a critical mineral. From 2027 onward, U.S. regulations will prohibit the use of Chinese tungsten in defense applications.

The Road Ahead: Ramping Up Operations

With funding secured and production initiated, Almonty's focus is shifting to operational stabilization and expansion. The immediate agenda for the coming months involves ramping up the mine's output, constructing an on-site tungsten oxide plant, and assessing results from drilling in the molybdenum zone of the deposit. The company's journey as a producer is now formally underway.