Almonty Industries: The NASDAQ countdown is on! Everyone wants a piece of the Tungsten Gem!

NASDAQ IPO still in July?

The excitement continues to build. When will Almonty's NASDAQ IPO take place? It is likely to occur within the next 1 to 2 weeks. This is suggested not only by the recently completed reverse split, which raised the share price to ensure it meets NASDAQ's minimum listing requirements under all circumstances.

Almonty CEO Lewis Black commented: "We are pleased to announce our application for listing on the Nasdaq concurrently with a public offering in the US, which will enable us to secure our position as a leading supplier of tungsten to the US and its allies. Given the increasing geopolitical tensions worldwide, we anticipate that demand and price prospects for tungsten will remain robust for some time to come. I look forward to continuing to execute our strategy in the coming months as we strive to create sustainable, long-term value for our fellow shareholders."

On Monday, the tungsten company announced further details of the IPO. Almonty's share capital is to be increased by approximately 10% through the issuance of new shares. This is a relatively small volume considering that Almonty is entering a new stock market league, massively increasing its name recognition, and appealing to a huge investor universe, both private and institutional. The stock should react positively. The consortium is also exciting. Oppenheimer & Co. and Cantor are acting as joint lead underwriters. D.A. Davidson & Co. and Canada's Scotiabank are also involved.

Extending value creation

And what does Almonty plan to do with the fresh capital? The value chain is to be extended by building a tungsten oxide plant. This will make Almonty not only the largest tungsten producer outside China, thanks to its tungsten mines in South Korea, Portugal, and Spain, but also a major processor. This is because processing is also largely in Chinese hands and can therefore be used as a weapon in geopolitical tensions.

The West needs Almonty

But why are Almonty shares rising like a rocket this year? After years of development, supported by the German KfW, among others, the largest tungsten mine outside China is set to go into operation in South Korea soon. Almonty already operates a mine in Portugal, plans to expand it and could potentially reactivate two more mines in Spain. However, the Sangdong mine in South Korea is clearly driving the share price: not only is it high-grade, but it also has a lifespan of over 90 years. This makes it the largest tungsten mine outside China. By 2027, Almonty aims to supply 43% of global demand outside China, with a particular focus on the US defense sector.

Analysts at GBC Research expect Almonty to generate CAD 314 million in revenue by 2027. They believe the tungsten gem will post net income of CAD 212 million, with an upward trend. The estimates are based on lower tungsten prices.

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Europe wakes up to critical raw materials

Europe appears to finally be waking up to the issue of critical raw materials. The EU Commission has presented a draft "Critical Raw Materials Act." The goal is for at least 10% of the EU's domestic consumption of various ores and minerals to be sourced within the EU by 2030, aiming to reduce dependence on third countries, such as China.

Among other things, approval procedures for strategic mines and processing capacities are to be accelerated. In addition, the conditions for access to subsidies are to be eased.

Almonty should also benefit from this. Tungsten is needed for semiconductors, batteries, and ammunition, among other things, and is therefore one of the critical raw materials. As already mentioned, Almonty aims to expand its mine in Portugal and could activate its mines in Spain. Easing approvals and subsidies can only be helpful in this regard.

Conclusion: NASDAQ IPO is only a stopover

Overall, the growth story for the Company and its shares is likely far from over. The current hype surrounding the NASDAQ IPO is well supported by both geopolitical dynamics and operational progress. Therefore, there should still be significant room for positive operational developments and price increases in the medium term.