Almonty Industries, Energy Fuels and Antofagasta: China Still Dominates, but These Stocks Are on the Rise

Almonty Industries: Numbers Are Surging, Potential Is Growing

In the second quarter, Almonty Industries impressively demonstrated the momentum that its operational ramp-up can generate. Revenue jumped 498% year-over-year to CAD 43 million. The turnaround in earnings was even more dramatic. Following a loss of CAD 59.2 million in the same quarter of the previous year, the company now posted a net profit of CAD 181.8 million. Adjusted EBITDA improved from a loss of CAD 4.8 million to a profit of CAD 17.6 million.

Yet the biggest driver of growth is only just getting started. The Sangdong mine in South Korea is still ramping up and is initially expected to reach an annual throughput of 640,000 metric tons. The second expansion phase, which has already been approved, could double capacity to up to 1.2 million metric tons. At the same time, Almonty is moving forward with the Gentung project in Montana, the expansion of Panasqueira in Portugal, and a tungsten oxide plant.

A key advantage is the financing. Following the oversubscribed USD 800 million convertible senior notes offering, Almonty had approximately CAD 1.2 billion in cash as of the end of June. Instead of financing projects one after another, management can now advance multiple growth initiatives in parallel.

The extended offtake agreement with Global Tungsten & Powders provides additional planning certainty. The term was extended by 6 years to a total of 21 years, the agreed volume increases by 40%, and pricing improves by 6.3%. This will not only boost production but also expand the long-term earnings base.

Following the significant price pullbacks, this could present a new opportunity. Analysts see considerable potential with price targets ranging from USD 23 to 33. If the production ramp-up continues successfully, Almonty is likely just at the beginning of its next growth phase.

Energy Fuels: A Clear Strategy

Energy Fuels is standing up to China. The American company is currently acquiring the Australian operation Australian Strategic Materials to reduce its dependence on China. ASM is developing an integrated supply chain for rare earths and critical metals outside of China by extracting and processing raw materials such as neodymium, praseodymium, dysprosium, terbium, zirconium, and hafnium, and refining them into high-purity metals and alloys for permanent magnets, e-mobility, defense, and high-tech applications.

ASM's shareholders approved this move by a large majority at a meeting in mid-August 2026. Well over 90% of the votes cast were in favour of the sale. In return, shareholders will receive a fixed combination of cash and new Energy Fuels shares. The legal implementation of this transaction is being handled through a subsidiary. An Australian court must now conduct a final review of the entire process and formally approve it. As soon as this approval is granted, trading of ASM shares on the stock exchange will be suspended immediately. The final closing of the acquisition is scheduled for late August 2026.

With this acquisition, Energy Fuels is implementing a clear business strategy. The goal is to establish its own rare earth production chain, located entirely in Western countries. Until now, the company has primarily operated a large processing plant in the US. The acquisition of ASM now adds key components to this strategy. Energy Fuels gains direct access to raw material mines in Australia as well as to a metals plant in South Korea. In the future, the ores are to be delivered directly from the mines to the company's own facilities.

In addition, Energy Fuels is currently expanding its existing US plant to process heavy rare earths there in the future. These specialized materials are essential for modern technology. To cover the final stage of production as well, the company is already preparing another acquisition. It plans to acquire a magnet manufacturer by early 2027. If successful, Energy Fuels will control every step of the process, from mining to the finished end product. The industry will then be able to source these components without relying on Asian suppliers.

Antofagasta Adjusts Annual Forecast Following Quarterly Results

Antofagasta also aims to reduce its dependence on Chinese supply chains. The company has achieved this so far through projects such as those in Chile. It has now reported its results for the first half of 2026, showing a significant increase in financial metrics. The mining group's pre-tax profit rose by 72% from the previous year to USD 2 billion. At the same time, revenue increased by 18% to USD 4.48 billion. The main reason for this development was higher copper sales prices, which averaged 36% above the previous year's level. Operating income rose by 27% to USD 2.84 billion, resulting in a margin of 63.4%. In addition, the company reduced net cash costs by 8%, supported by an internal efficiency program that yielded USD 67 million in savings. Due to increased operating cash flow, the interim dividend per share was raised by 81%. However, the company had to contend with a 9% decline in copper production to 285,000 metric tons.

Looking ahead to full-year 2026, management revised its production targets downward. The new estimate projects copper production between 625,000 and 655,000 metric tons, whereas the previous target was up to 700,000 metric tons. This adjustment is attributable to severe weather events in Chile. The weather events forced a temporary suspension of operations at the Los Pelambres facility, where repair work on the water management systems and pipeline infrastructure was subsequently required. In addition, temporarily lower ore grades in the mining areas dampened production volumes. Nevertheless, the company continues to invest in capacity expansion to increase total production by approximately 30% by 2027.

Critical raw materials are becoming a strategic key for Western industry. Almonty Industries is poised for a new phase of growth with its tungsten expansion, while Energy Fuels aims to establish a Western supply chain for rare earths through its acquisition of ASM. Despite production problems, Antofagasta is delivering strong profits and investing heavily in additional copper capacity.