Almonty's $68 Million Ore Stockpile Finally Goes Into Production as Sangdong Mine Exits Development Phase

Almonty Industries' Sangdong tungsten mine starts processing stockpiled ore, generating first revenue in years. Q1 2026 cashflow turns positive at $10M, but stock remains 30% below highs amid dilution concerns.

Almonty Industries has crossed a threshold years in the making. The company's Sangdong tungsten mine in South Korea’s Gangwon province has begun feeding its processing plant with stockpiled ore, turning a long-dormant asset into a revenue-generating operation. The transition from developer to producer comes with roughly 139,700 tonnes of material valued at an illustrative $68 million waiting to be turned into tungsten concentrate.

The processing startup, announced earlier this week, marks the first time the mine has produced saleable output since its revival began. Chief executive Lewis Black described the moment as the culmination of a decade-long effort, noting that the company is now operating in a "very favourable" tungsten price environment.

Cashflow Turns Positive After Years of Losses

The first quarter of 2026 already reflected the improving financial trajectory. Almonty reported revenue of $25.4 million, and more importantly, operating cashflow swung to a positive $10 million. That compares with the same period a year earlier, when the company booked $32.5 million in revenue but was weighed down by hefty upfront costs and expensive debt service.

The turnaround stems from the decision to begin processing ore that had been stockpiled during the development phase. At the end of the first quarter, the inventory stood at 120,000 tonnes with an average tungsten trioxide grade of 0.24 percent. That pile has since grown by nearly 20,000 tonnes and now forms the initial feed for the new processing facility.

Stock Price Remains Stuck Below April Peaks

Despite the operational milestone, the market reaction has been measured. Shares closed Friday at C$23.16, up 4.09 percent from the previous session’s close of C$22.25. But the stock still trades 30.55 percent below its 52-week high of C$33.35 reached on April 17. The relative strength index stands at 43.4, indicating neutral territory after the recent pullback.

The disconnect between improving operational news and a sideways-to-lower stock price reflects lingering uncertainty. Annualised 30-day volatility sits at 90.68 percent, a reminder that every update from Sangdong can trigger outsized moves. On a year-to-date basis, however, Almonty is still up 92.52 percent, and over twelve months the gain stands at 246.19 percent.

New Shares and Governance Changes Add Caution

Amid the production ramp-up, Almonty has also taken steps to bolster its corporate structure. The company was recently added to both the Russell 1000 and Russell 3000 indices, a move that improves liquidity and visibility among institutional investors. The board has also strengthened the management team and relocated the corporate headquarters.

But not all news has been reassuring for shareholders. On July 2, Almonty issued 145,000 new common shares under a special provision of Australian law that permits immediate resale of the securities. The move has raised fears of further dilution, particularly given that the company remains dependent on steady processing throughput to sustain its nascent cashflow.

Analyst Optimism Tempered by Execution Risk

One analyst covering the stock maintains a "Buy" rating with a price target of C$25.00, a level that implies modest upside from Friday's close. The bullish case rests on Almonty’s strategic positioning as a Western tungsten supplier at a time when supply chain diversification is gaining urgency. The company aims to meet roughly 40 percent of global tungsten demand outside China when Sangdong reaches full capacity.

History supports the ambition. Sangdong was once one of the world’s largest tungsten producers before a prolonged price collapse forced its closure in the early 1990s. Almonty has invested more than $100 million since acquiring the project in 2015, building a modern underground mine and processing plant.

The company is also advancing a molybdenum project at the same site, with 37 percent of a planned 26-hole, 12,000-metre drilling programme already completed. That effort is part of a broader strategy to build an integrated resource base in South Korea.

What Comes Next

The immediate focus is on how quickly the processing plant can convert the stockpiled ore into shippable concentrate. Almonty is starting with lower-grade material and expects head grades to improve as the process stabilises. Each quarter's production figures will now directly influence the stock’s direction, replacing the narrative-driven speculation of the development years with the hard reality of operational metrics.

For a company that has long traded on promise, the shift to delivering tangible output is the most important change yet. Whether the share price can recapture its spring highs will depend on whether those numbers can match the market’s expectations.