June 17th, 2025 | 07:00 CEST
Almonty Industries – Now it is getting critical!
The escalating conflict between Israel and Iran, with mutual missile attacks, is causing death and destruction. However, with the Islamic Republic threatening to block the Strait of Hormuz, an economic disaster could be imminent. The reason is that a large part of global supply chains run through the strait between the Persian Gulf and the Gulf of Oman. Both energy supplies and the flow of goods would be severely affected, with catastrophic consequences in the form of skyrocketing inflation and disrupted supply chains. Western countries are urgently searching for alternative production sites, especially for critical raw materials, in order to avoid such horror scenarios in the future. In the case of the critical metal tungsten, Almonty Industries is on the verge of a breakthrough in supplying the Western world with this strategic raw material.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
ALMONTY INDUSTRIES INC. | CA0203981034
Table of contents:
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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High-quality deposit with strategic depth
Almonty Industries is on the verge of a decisive milestone with the Sangdong mine in South Korea. After around ten years of development, commissioning is planned for summer 2025. The mine is one of the world's largest and highest-grade tungsten deposits, with ore grades approximately three times higher than the market average. With a projected life span of over 90 years, Sangdong represents a long-term asset.
In addition, the Canadians are striving for vertical integration. Parallel to the first production phase, they plan to build their own tungsten oxide production plant and smelting facility. This would make Almonty the only fully integrated tungsten producer in a transparent legal system outside China. In addition, the Sangdong property has an approved molybdenum deposit that has already been secured by a purchase agreement with the SeAH Group.
Almonty's role in security of supply
China's increasing export controls on strategic metals, including tungsten, gallium, and germanium, have put pressure on the West's supply of raw materials. The US, Europe, and Japan depend on these metals, especially for the defense industry, semiconductor production, and high-tech applications. China's dominance in the global value chain makes diversification of supply sources imperative.
In this complex situation, Almonty Industries is positioning itself as a key source of supply outside China. With a projected coverage of up to 40% of global tungsten production outside the Middle Kingdom, the Company can significantly contribute to supply security. The US government has taken note of this with approval. The Congressional Committee on Strategic Competition with China has emphasized Almonty's importance and signaled potential cooperation in the context of national defense reserves. CEO Lewis Black, therefore, describes the Sangdong project not only as a commercial mining venture but as a strategic infrastructure asset aimed at strengthening the resilience and security of Western supply chains.
Well-financed and well connected
Almonty focused early on economic stability and predictable earnings. Project financing from KfW IPEX-Bank on favorable terms demonstrates confidence in the management and the project. Purchase agreements with minimum prices, including with the US company Tungsten Parts Wyoming and Israeli partner Metal Tech, secure stable cash flows for Almonty. In addition, more than half of future production from South Korea is not tied to long-term contracts, giving the Company flexibility in global sales. In Europe, there is a supply agreement with the Austrian Plansee Group, which is also one of the largest shareholders.
Almonty is also strategically expanding its US network: the relocation of the Company's headquarters to the United States was approved by 99.6% of shareholders. Alan Estevez and General Gustave F. Perna, two prominent US military and security representatives, recently joined the Board of Directors. Membership in the Critical Minerals Forum also gives Almonty access to DARPA's state-of-the-art analysis tools.
Analysts euphoric
A listing on the NASDAQ is planned and should significantly increase visibility among institutional investors and liquidity in the stock. Analysts have adjusted their forecasts: GBC Research raised its price target to CAD 5.50 and expects revenue to increase to CAD 314.9 million by 2027.
Sphene Capital also sees potential and even forecasts CAD 482.3 million in revenue with an EBIT of CAD 197.5 million from 2027. The valuation appears favorable compared to the peer group: The expected price-to-earnings ratio is 5, while comparable US companies such as MP Materials are valued significantly higher.
Almonty on the verge of a breakthrough
The pressure to secure supplies from non-Chinese suppliers is high, and demand for tungsten exceeds supply. According to industry experts, European and US stocks are almost depleted. With the commissioning of the Sangdong mine, political backing from the US, exclusive supply contracts, and an ambitious expansion strategy, Almonty Industries is perfectly positioned to meet the requirements of the geopolitical situation.
The next step is to start production in the second half of 2025 at the latest, an event with far-reaching consequences for the global raw materials market and a milestone for investors who have already invested.
In an interview interview on CNBC, Almonty CEO Lewis Black talks about the reopening of the Sangdong mine in South Korea and also discusses the outlook for tungsten in light of global demand for critical metals.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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