Almonty, 2G Energy and Redcare Pharmacy: Three Exciting Stocks with Fresh Momentum

Almonty: Sangdong Delivers—Finally

For years, the Sangdong mine was primarily a promise. Now it is producing. In mid-September, Almonty Industries received the final regulatory certifications for its processing and crushing plant in South Korea. This allows the company to produce, invoice, and export marketable tungsten concentrate. A few days later, the first bags rolled off the production line—the first production in Sangdong since 1993.

This marks a crucial phase for Almonty. According to CEO Lewis Black, the plant was operating 13 hours a day, seven days a week, as of late September. Operating hours are expected to increase soon to continuous 24-hour operation. Ore sufficient for approximately 4.6 months of production is already stockpiled for the ramp-up. This allows the mine and mill to be brought online largely independently of one another.

The timing is favourable. China accounts for about 80% of global tungsten production and has restricted exports. At the same time, the US will tighten origin rules for tungsten starting in 2027, which is used in defense equipment. This extremely hard, heat-resistant metal is needed for ammunition, armour, tools, semiconductors, and electronics, among other uses. Quantities that can be quickly sourced from allied nations are therefore in high demand.

Almonty already has a buyer for more than 90% of its planned Phase I production. The contract with Global Tungsten & Powders, a subsidiary of the Austrian Plansee Group, runs for 21 years from the first delivery. It stipulates a minimum volume of 210,000 MTU per year once production is ramped up. On the positive side: The contract includes a price floor but allows Almonty to share in any further increases in tungsten prices.

While the first production phase is ramping up, Almonty has already begun the next expansion. For the second phase, new underground areas are being developed, and additional mills have been ordered from Metso. By 2027, processing capacity is expected to rise to up to 1.2 million metric tons of ore per year. Sangdong could then produce more than 460,000 MTU annually and become one of the largest tungsten mines outside of China.

The portfolio is also expanding beyond South Korea. For the reprocessing of old tailings from the Los Santos Mine in Spain, which has been dormant since 2020, Almonty signed a long-term take-or-pay contract with a Sandvik subsidiary. It covers at least 1,720 metric tons of contained tungsten trioxide, a minimum price and a conditional one-time payment of USD 3 million. In Rwanda, the government is contributing a tungsten concession and a processing license to a joint venture in exchange for a 25% stake. In the short term, ore and tailings already mined there are to be collected and upgraded.

Financially, Almonty is well-positioned following the placement of a convertible senior notes offering worth USD 800 million. The coupon is only 2.25%. However, the offering remains debt and may lead to dilution later on. Investors need to be aware of this. However, the share buyback helps offset some of this. By the end of September, Almonty had repurchased just under 2.92 million shares for approximately USD 48 million. A share buyback program of up to USD 300 million has been approved.

Analysts at Stifel are providing additional momentum. The US research firm initiated coverage at the end of September with a "Buy" rating and a price target of USD 25. The experts expect revenue of CAD 345.8 million and adjusted EBITDA of CAD 247.1 million for 2026. In 2027, these figures are expected to jump to CAD 926.2 million and CAD 792.7 million, respectively. Based on this, the enterprise value-to-EBITDA ratio for 2027 would be just 6.9.

However, the massive jumps in earnings also highlight how many factors in the model must already be working. Stifel assumes a tungsten price of USD 2,471 per MTU for 2027, a rapid ramp-up at Sangdong, and progress on the Panasqueira mine expansion in Portugal. According to the study, a 10% decline in tungsten prices would reduce estimated 2027 EBITDA by about 12%. On top of that are technical ramp-up, quality, and delivery risks.

Nevertheless, other analysts remain optimistic. A total of 11 analysts currently recommend buying the stock, while only one advises holding. There are currently no sell recommendations. The latest developments are more than just future promises: Sangdong has received approval, is producing its first concentrate, and is backed by long-term offtake agreements. The next proof point must now come in the form of rising production volumes, deliveries, and cash flow.

For risk-tolerant investors, Almonty remains one of the most exciting Western tungsten plays. Following the sharp price fluctuations, staggered purchases are advisable, as its growth prospects remain strong. If operations gain sustainable momentum with the ramp-up of Sangdong, Almonty's stock still has significant upside potential for further price gains.

2G Energy: AI Data Centres Are Filling the Order Books

At 2G Energy, the power shortage facing data centres is fueling rapid growth. Because grid connections in the US often take years, operators are turning to decentralized power plants located right next to the server halls. At the end of September, 2G reported a 275-megawatt contract with Energy Vault. The containerized systems are scheduled for delivery between the fourth quarter of 2027 and the third quarter of 2028; long-term service contracts are included.

In the third quarter, 2G secured orders worth more than EUR 400 million; over nine months, order intake totalled more than EUR 880 million. The Executive Board therefore raised its revenue forecast for 2027 from EUR 570 to 620 million to EUR 600 to 650 million. For 2028, the company is projecting EUR 750 to 850 million for the first time, and the EBIT margin is expected to exceed 11% starting in 2027.

The income statement does not yet reflect this new growth. In the first half of the year, total revenue fell by 4.7% to EUR 184 million, and the EBIT margin dropped from 3.3% to 0.6%. For 2026, however, 2G is sticking to its forecast of EUR 490 million in revenue and a margin of 9.5% to 10.5%. This will require a strong second half of the year. The valuation is also ambitious, with an estimated 2026 P/E ratio of around 36. However, based on earnings estimates for 2027, a moderate P/E ratio of 23 is calculated. The record-high order backlog provides good visibility. If the production ramp-up stays on track, the stock has further upside potential despite its already strong price performance.

Analysts also have high hopes for 2G Energy. There are 5 "Buy" recommendations and only 1 "Hold" recommendation; there are no "Sell" recommendations. On average, experts see the fair value at just under EUR 79—about 37% above the current price. Long-term investors may want to take a closer look at this stock as a portfolio addition.

Redcare Pharmacy: E-Prescriptions Ignite the Next Phase

The online pharmacy Redcare Pharmacy raised its forecast for the second time this year at the end of September. Revenue from prescription drugs in Germany is now expected to reach EUR 730 to 760 million by 2026. Previously, the target was EUR 680 to 720 million. The expected growth in consolidated revenue is rising from 15–17% to 16–18%.

E-prescriptions are the growth driver. German Rx revenue provisionally rose by 56% in the third quarter; in September, it was 51% despite a higher comparative base. However, the adjusted EBITDA margin is expected to remain unchanged at 2.5 to 3.0%. The next test of the company's fundamentals will come with the full quarterly results on October 29. The key question is whether Redcare can increasingly translate this high growth into rising profits and cash flows.

The stock rose sharply following the upward revision of the forecast but is still valued at only about 0.5 times expected revenue. This is not excessive for a structural growth stock. Risks remain in the form of intense competition, high marketing costs, and potential regulatory changes. However, as long as e-prescriptions continue to shift market share toward online pharmacies, Redcare has a good chance of continuing its comeback.

The median analyst price target of just under EUR 97 implies 35% upside potential. The distribution of recommendations is also favourable. Nine banks and research firms recommend buying, while three advise holding. Only one analyst currently recommends selling. Given the expected growth in the coming year, Redcare stock remains worth considering for speculative small-cap investors.

Conclusion

Almonty, 2G Energy, and Redcare Pharmacy are at different stages in their growth trajectories. For Almonty, the ramp-up at Sangdong will determine whether the ambitious forecasts translate into strong profit and cash flow growth. If this succeeds, Almonty shares have the greatest upside potential of the trio, despite their high volatility. 2G Energy, on the other hand, stands out with well-filled order books and a high degree of planning certainty. However, the stock's high valuation leaves little room for execution setbacks as the company works through its major orders. Redcare Pharmacy, in turn, benefits from the structural rise of e-prescriptions, but it still needs to convert rapid revenue growth into profits more effectively. Overall, all three stocks offer compelling drivers for price appreciation: Almonty for speculative commodity investors, 2G Energy as a bet on AI's appetite for power, and Redcare as a comeback candidate in the European online pharmacy market.