Almonty Shares Gain Momentum on Tightening Tungsten Market

Almonty benefits from rising tungsten prices and Sangdong mine progress amid a legitimate supply squeeze, prompting an analyst upgrade and share price momentum.

A significant reassessment is underway in the tungsten sector as supply tightens, creating favorable conditions for producers like Almonty. The company is benefiting from a dual catalyst: rising metal prices and concrete operational progress, which together are prompting a more optimistic view from market analysts.

Operational Advances at Sangdong Mine

Central to Almonty's positive narrative is the ongoing ramp-up of production at its Sangdong mine in South Korea. This project is positioned to become a major source of tungsten outside of China. The company's stated objective is to supply a substantial portion of the non-Chinese tungsten market, aiming to establish a key component of a Western-anchored, integrated supply chain. This operational progress provides a fundamental basis for the improved market sentiment.

Analyst Upgrade Reflects Strong Market Fundamentals

The shifting dynamics were highlighted this week when Couloir Capital revised its coverage of Almonty, raising its price expectations in an updated report. The firm cited a robust fundamental outlook for the tungsten market as the core reason for its reassessment. This move follows a period of substantial price increases for the metal, which is critical for the defense, aerospace, and high-tech industries.

CEO Points to a "Legitimate" Supply Squeeze

Echoing this view, Almonty CEO Lewis Black commented this week on what he described as a "real, legitimate supply shortage" for tungsten. He assessed that the metal's pricing is behaving more independently from historical control mechanisms for the first time in decades, with customers currently accepting the higher costs. Reports supporting the tight market conditions point to declining exports from China and growing demand from the defense sector as key contributing factors.

Market Recognition and Share Performance

The combination of constrained supply and project advancement has recently supported positive momentum for the company's share price, which has shown significant gains over the past several months. Indicative of the heightened attention, media coverage of the company and sector has intensified, with notable reports from outlets including Handelsblatt and Fox Business.