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April 24th, 2025 | 07:00 CEST

Almonty Industries - Trade restrictions are not always a bad thing; they can also represent a real opportunity

  • Mining
  • Tungsten
  • Investments
Photo credits: pixabay.com

Trade restrictions, particularly China's recent export restrictions on critical metals and rare earths, have put pressure on the global economy. According to a report by Reuters, China has warned South Korean companies against supplying products containing Chinese rare earth minerals to US defense companies. However, these developments open up opportunities for Western companies like Almonty Industries to strengthen their security of supply and position themselves as reliable partners in critical supply chains. Investors looking for long-term, stable investment options, in particular, should take a closer look at the potential of Almonty Industries.

time to read: 3 minutes | Author: Armin Schulz
ISIN: ALMONTY INDUSTRIES INC. | CA0203981034

Table of contents:


    The background: China's strategic moves

    The escalation of the trade conflict between the US and China has reached a new dimension. China, which dominates around 85–93% of global tungsten production, has massively restricted exports of critical metals such as tungsten, gallium, and rare earths. These metals are indispensable for the manufacture of semiconductors, electric motors, batteries, and even defense equipment. Without them, modern industry would come to a standstill.

    Western industrialized nations, especially the US, Germany, and Japan, are particularly affected. They depend on imports to keep their technology and defense industries running. Experts are already warning of production losses and dramatic increases in the price of tungsten, as stocks in Western countries would only last for 3-6 months. As a result, the prices of all products that require tungsten would rise significantly.

    Almonty Industries: A strategic player

    In this geopolitical environment, Almonty Industries is positioning itself as an important tungsten producer in secure jurisdictions. The Canadian mining company specializes in acquiring and optimizing tungsten mines and is already one of the European market leaders. With the Panasqueira mine already in production in Portugal and the existing Los Santos mine in Spain, Almonty has tungsten deposits in politically stable regions.

    Another milestone is the Sangdong mine in South Korea, considered one of the largest tungsten deposits outside China, which will soon go into production. With a planned annual output of 5,000 tons, Almonty will cover around 30% of global tungsten production outside China and Russia. This makes the Company a key player in the Western supply chain. The property also has a large molybdenum deposit.

    Furthermore, Almonty Industries has long-term purchase agreements for tungsten with the Austrian Plansee Group, which holds 15% of the Company's shares, as well as with the US manufacturer Global Tungsten & Powders. This highlights the confidence in the Company's strategic direction.

    A buyer has also already been found for the molybdenum deposit in the form of South Korean steel and SpaceX supplier SeAH M&S. The agreement stipulates that SeAH will purchase the entire molybdenum production of the Sangdong project in South Korea for the entire life of the mine. A guaranteed minimum price of USD 19 per pound has been set. Production is scheduled to start at the end of 2026 with a mine life of 60 years. Around 5,600 tons of molybdenum are to be mined annually.

    Economic and geopolitical significance

    The significance of Almonty Industries goes far beyond mere raw material extraction. By relocating its headquarters to the US, the Company has not only strengthened its proximity to important markets but also improved the conditions for a US listing. This underlines the Company's ambitions to become a leading supplier of critical raw materials.

    Tungsten, known as the "king of metals" due to its unique properties, such as the highest melting point of any metal, is indispensable not only for electromobility and the semiconductor industry but also for the defense industry. Almonty Industries thus not only supplies raw materials but also secures the technological sovereignty of the West.

    Investment potential

    Almonty Industries offers an attractive profile for investors looking for long-term stable investments. The Company benefits from rising demand for critical raw materials, which is being further fueled by technological progress and geopolitical tensions.

    The latest forecasts for the global tungsten market point to annual growth of up to 8%. With its diversified portfolio and presence in politically stable regions, Almonty Industries is well-positioned to benefit from this trend.

    In addition, the Company has a world-class project in the pipeline with the Sangdong mine, which is expected to significantly increase production and profitability. Analysts forecast revenues of over CAD 192 million and EBIT of CAD 69.4 million for the coming year. Analysts' price targets range between CAD 4.20 and CAD 5.20. The share is currently trading at CAD 2.57.

    Lyndsay Malchuk interviews Matthias Greiffenberger, analyst at GBC AG**

    Due to the uniqueness and importance of the raw material, takeover rumors are also increasingly circulating, which could give the share price additional momentum.

    CEO Lewis Black has repeatedly bought shares of his company, most recently at the end of March, even after the share price had already risen significantly. This reflects the confidence of the management team, which is also a major shareholder.


    While trade restrictions may pose short-term challenges, they also present opportunities for companies that are able to navigate the new geopolitical landscape. Almonty Industries has positioned itself as a reliable partner in the Western supply chain for critical raw materials and offers attractive prospects for investors. With its strategic focus, global portfolio, and ability to build long-term partnerships, the Company is well-positioned to meet future demand for tungsten and molybdenum. For investors who value sustainability and long-term stability, Almonty Industries is a compelling choice.


    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
    For this reason, there is also a concrete conflict of interest.
    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    Der Autor

    Armin Schulz

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



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