Almonty Industries, DroneShield, Thales: Three Companies Benefiting from the Global Arms Race

Almonty Industries: Outstanding Positioning

Currently, commodities such as oil, gold, and rare earths dominate the headlines in the financial press, while the essential industrial metal tungsten remains in the background. Yet the market's momentum is enormous, driven by exploding demand across various industries. Chinese export restrictions, global rearmament, and the booming semiconductor sector have caused the price of ammonium paratungstate (APT) to rise by around 200% at times. Since China controls about 80% of global production, Western producers are increasingly coming into focus.

However, not every supplier is likely to benefit equally. While companies such as Tungsten West and EQ Resources are important players outside of China, they have smaller production capacities or are still in the expansion phase. Almonty Industries, on the other hand, is in an exceptional position.

With the Sangdong mine in South Korea, the company is developing one of the largest and highest-grade tungsten projects in the world. Once it reaches full production, Sangdong could supply up to 40% of tungsten production outside of China, thereby becoming a key component of the Western supply chain.

Added to this is a high degree of planning certainty. For the majority of production from the first phase of expansion, there is already a 15-year offtake agreement with the Austrian Plansee Group. Additional supply agreements with customers in the US, Europe, and Japan further strengthen the long-term sales base.

At the same time, Almonty is consistently expanding its presence in North America. With the planned relocation of its headquarters to the US, the Gentung project in Montana, and its own tungsten oxide processing facility, the company aims to establish a fully Western supply chain. This strategy is supported by a strong capital base of more than USD 900 million. This not only finances ongoing projects but also makes strategic acquisitions of additional mines or processing facilities a possibility.

Despite its outstanding position, Almonty's share price lost nearly 40% of its value from its peak following last year's rally and is currently trading at around USD 14.95, within a broad support zone.

DroneShield: Another Plunge

The Australian defense technology company DroneShield has rolled out a comprehensive software update for the third quarter of 2026. The technical enhancements include the radio sensor system and the company's proprietary command software, "DroneSentry-C2". The system update reduces the time required for target acquisition by 58%. At the same time, tracking accuracy has been increased by 15%. Specifically for security-critical applications, the system now also offers an offline function.

This allows the software to be updated via physical storage media. In addition, new radar interfaces and locally storable mapping systems were introduced. With these modifications, DroneShield is transitioning from a pure hardware manufacturer to a software service provider to generate recurring license revenue.

In parallel with these technological developments, the company is undergoing a change in leadership. Retired Rear Admiral Lee Goddard has been serving as an independent director on the board since early July 2026. Goddard brings more than three decades of professional experience from the Australian Navy, the national security apparatus, and various government offices. During his career to date, he has, among other things, led complex border security operations. The company plans to leverage Goddard's knowledge of government procurement processes and his regulatory network to drive international business development. The focus is on securing new government contracts in its home market, Australia, as well as in the United States.

Despite operational and personnel progress, DroneShield's stock is currently experiencing significant price losses. Over the past four weeks, the share has lost more than 20% of its value.

Thales: Acquisition Causes a Stir

Thales, another leading player in the defense industry, secured a major NATO contract together with its Italian partner Leonardo. The two companies will soon equip special operations forces with a new communications infrastructure. Specifically, the agreement covers the manufacture and delivery of six mobile command centers. In addition, the contract includes training for the special operations forces. A key technical feature of the project is its high redundancy and reliability. The systems combine civilian and military satellite links with 5G and radio networks to ensure continuous data transmission even in the event of potential outages or under challenging environmental conditions.

In addition, Thales is expanding its portfolio through the acquisition of Exail Technologies. In this transaction, the company, which specializes in maritime robotics, is valued at EUR 3.9 billion. As a first step, Thales is acquiring the founding family's 35.51% stake. The agreed purchase price of EUR 134 per share includes a 44% premium over the share price prior to the initial rumours of a sale. A regular tender offer for the remaining shares is planned to follow. Previously, negotiations between Exail and its competitor Safran had ended without an agreement.

With this acquisition, Thales is integrating technologies in the fields of maritime mine countermeasures and inertial navigation into its group. Management expects the merger to yield measurable financial benefits. By 2032, annual cost savings in operating income exceeding EUR 90 million are expected. In addition, the company anticipates EUR 500 million in additional revenue over a ten-year period through joint market development. The completion of the initial share acquisition is expected in the third quarter of 2027.

Almonty Industries stands out for its key role in the Western tungsten market and could benefit disproportionately from the geopolitical realignment. Thales is strengthening its market position through new NATO contracts and the expansion of its naval business. While DroneShield is focusing on its transition to a software provider and new government contracts, it is struggling with significant share price losses following its strong rally.