Almonty Industries: Transitioning from Development to Production

Almonty CA0203981034

Almonty Industries enters the new year with significant momentum, following a remarkable share price appreciation of approximately 800% in 2025. The company's focus is now squarely on the final stages before the Sangdong tungsten mine in South Korea becomes operational. The central challenge for the management team will be executing a seamless shift from project development to stable, commercial production as planned.

The geopolitical landscape is amplifying the strategic value of Almonty's assets. A forthcoming U.S. Department of Defense mandate, effective 2027, will prohibit the sourcing of tungsten from non-allied nations, including China and Russia. This policy shift positions Almonty as a potentially critical supplier for Western defense and industrial needs.

Recent corporate actions underscore this strategic alignment:
* CEO Lewis Black has engaged with U.S. government officials, including meetings at the White House, culminating in the signing of an agreement for future tungsten supply to meet U.S. national security requirements.
* The company is relocating its corporate headquarters to New York.
* Its primary stock exchange listing is now on the NASDAQ, effective immediately.

Sangdong Mine Nears Operational Milestone

A key milestone was achieved in mid-December when ore was first transported to the Run-of-Mine (ROM) pad at Sangdong. This event marks the final major step before the initiation of commercial production, allowing material to begin moving through the crushing, milling, and flotation circuits.

For the initial months of 2026, CEO Lewis Black has outlined clear operational priorities:
* Commissioning the processing plant and achieving stable throughput rates.
* Ramping up output to fulfill existing offtake agreements.
* Optimizing tungsten deliveries from both the Sangdong operation and the Panasqueira mine in Portugal.

Commercial production at Sangdong is scheduled for the first half of 2026, with full operational capacity targeted by the end of the first quarter. Once at full capacity, the facility is designed to supply over 80% of the Western world's non-Chinese tungsten production. Engineered for 24-hour operation, the plant aims to process approximately 1.2 million tonnes of ore annually.

Financial Foundation and Expansion Projects

Almonty has substantially fortified its balance sheet. Following its NASDAQ initial public offering in July 2025, which raised $90 million, the company completed a further capital raise in December, securing $129.4 million. The placement, led by Bank of America, was oversubscribed and attracted new long-term oriented U.S. institutional investors.

Current available liquidity exceeds $111 million. These funds are earmarked for several key initiatives:
* Finalizing commissioning and the production ramp-up at Sangdong.
* Exploration and development of the Gentung-Browns Lake project in Montana.
* Expansion work at the Panasqueira mine in Portugal.
* A drilling program at the molybdenum project within the Sangdong property.

Strengthening the U.S. Footprint

The acquisition of the Gentung-Browns Lake tungsten project in Montana in November 2025 expands Almonty's direct presence in the United States. Production at this site is anticipated in the second half of 2026. Existing permits and infrastructure are expected to facilitate a relatively capital-efficient start-up.

The Forthcoming Operational Test

The first quarter of 2026 represents a critical proving ground for the company. The primary objective is to demonstrate that the commissioning of Sangdong's crushing, grinding, and flotation circuits proceeds according to schedule, yielding reliable production data.

In this context, broker DA Davidson has reaffirmed its buy recommendation, issuing a price target of $12.00 per share. The firm cites substantially reduced project risk following the milestone of first ore delivery.

With the technical infrastructure now in place, a strengthened financial reserve, and existing offtake contracts featuring attractive price floors, Almonty's path to generating free cash flow is largely dependent on the efficiency of its production ramp-up in the coming months.