Strategic Shift as Major Investor Trims Stake in Almonty Industries

Deutsche Rohstoff AG reduces stake in Almonty Industries as the tungsten producer commissions its Sangdong mine. A record net loss is attributed to a non-cash accounting charge from the soaring share price.

A significant shareholder in the tungsten producer Almonty Industries has capitalized on the company's recent operational progress by executing a major divestment. Deutsche Rohstoff AG has substantially reduced its equity position, a move that coincides with Almonty reaching a key production milestone and underscores the stock's dramatic performance over the past year.

A Calculated Exit Following Substantial Gains

On April 1, Deutsche Rohstoff AG disclosed the sale of nine million shares in Almonty. This transaction reduces the German resource company's holding to 4.9%, effectively transitioning its role to that of a passive investor. The timing of this strategic pullback is logical in the context of the share's remarkable appreciation, which has seen it surge by over 560% on a year-to-date basis.

This powerful rally, however, led to a paradoxical financial outcome for Almonty's 2025 fiscal year. Despite reporting an increase in revenue from CAD 28.84 million to CAD 32.51 million, the company posted a record net loss of nearly CAD 162 million.

Accounting Anomaly Masks Operational Progress

The primary driver of this substantial loss was almost entirely a non-cash accounting adjustment. The steep rise in the company's share price throughout the year caused the theoretical fair value of its outstanding convertible debentures to escalate rapidly. This necessitated a non-liquid, paper impairment charge exceeding CAD 87 million. Consequently, the loss is a direct byproduct of the equity's market success and does not reflect deteriorating fundamentals, which have, in fact, shown improvement.

Operational Focus Bears Fruit with Mine Commissioning

On the operational front, Almonty has achieved a critical objective. In mid-March, the company formally completed the first phase of commissioning at its Sangdong tungsten mine in South Korea. The facility has now transitioned to active mining operations, with an expected annual output of 2,300 tonnes of tungsten concentrate.

Bolstered by a solid cash position of approximately CAD 268 million at the turn of the year, the focus for remaining shareholders now shifts to cash flow stabilization. The next defined corporate goal is the planned second-phase expansion in South Korea, targeted for 2027, which aims to double Almonty's production capacity.