Iran Conflict and Chip Boom: Almonty Industries Emerges as a Raw Materials Superpower

A Powder Keg Under a Fragile Peace

The world is currently watching the Middle East with bated breath. The conflict between Iran and its adversaries, the US and Israel, is keeping the markets on edge. Although a ceasefire was painstakingly agreed upon through Pakistan's mediation, the reality on the ground shows us just how fragile this peace actually is. Reports are mounting that tensions continue to simmer beneath the surface and that Israel is just waiting to resume its military operations to eliminate strategic targets once and for all. In such unstable times, one thing becomes clearer than ever: defense readiness is not an option, but an absolute necessity. And this is precisely where a metal comes into play that has often been overlooked, and still is to some extent, but forms the backbone of modern military technology. Due to its extreme density and hardness, tungsten is simply irreplaceable for armor, armor-piercing ammunition, and missile components. Every conflict, every threat, and every fragile ceasefire heightens global awareness of the supply security of this critical metal.

The Monopoly of China, Russia, and North Korea and the West's Response

This global uncertainty is hitting a market that is already under massive pressure. China, Russia, and North Korea control an incredible 95% of global tungsten supply. It is a dangerous monopoly that Beijing shamelessly exploited in 2025 by imposing strict export restrictions. The consequences were a bombshell for the entire global economy. The price of tungsten skyrocketed by several hundred percent in a very short time and recently reached new record highs. Western companies, from the semiconductor industry to aircraft manufacturers, may suddenly find themselves facing empty warehouses and fearing for their production. Industry has already issued urgent warnings that supplies at major chip manufacturers like Samsung may only last until June. In this precarious situation, Almonty is positioning itself as a key non-Chinese supplier.

Thinking Four Steps Ahead

What makes Almonty Industries so special is its exceptional management under the leadership of CEO Lewis Black. While many companies have responded to recent supply disruptions only after they materialized, Almonty has spent years preparing for tighter market conditions and shifting geopolitical dynamics. A notable step was the appointment of retired Brigadier General Steven L. Allen as Chief Operating Officer, underscoring the company's focus on the strategic relevance of tungsten within defense and critical supply chains. This forward-looking approach has contributed to Almonty's current positioning. With the start of operations in South Korea, the company is transitioning from a development-stage business toward becoming an active producer, marking a significant operational milestone.

From Vision to Reality: Sangdong in South Korea Awakens

At the heart of this success story is the Sangdong mine in South Korea's Gangwon Province. On March 17, 2026, a ceremonial event was held there, marking the beginning of a new era. After nearly three years of intensive work, the first ore was extracted. Sangdong is considered one of the world's largest and highest-grade tungsten deposits outside of China. The figures presented in the latest presentation from February 2026 are impressive. Experts expect Almonty's revenue to rise from CAD 32.5 million in 2025 to a staggering CAD 747.7 million in 2026. Production is expected to multiply while unit costs drop significantly. It is a unique selling point that catapults Almonty into a league where competitors are struggling just to gain a foothold.

The Raw Numbers

The financial strength the company has built up over the past year is another foundation for investor confidence. A successful capital raise at the end of 2025 brought in over CAD 268 million for the company. This money will not only be used for the ramp-up in South Korea but will also fund expansion in the US. With the project in Montana, Almonty secures a strategically important foothold right in the heart of North America. Production there is set to begin as early as the second half of 2026. In doing so, management is diversifying risk while simultaneously providing a domestic source for the Pentagon and US industry. Starting in 2027, Chinese raw materials will be banned from US defense policy, placing Almonty in a pole position that cannot be overstated.

Institutional Confidence and Market Opportunities

A glance at the current stock analysis reveals that even the big names on the stock market have recognized the enormous potential. The number of institutional investors has risen by more than half in the last quarter. Names like VanEck now hold massive stakes worth several million USD, and Encompass Capital Advisors and Next Century Growth Investors have also recently invested several million USD. GBC analysts have drastically raised their price targets to CAD 28.60. Even though the stock recently underwent a healthy correction following a months-long rally, market observers view this more as a necessary consolidation before the next big jump. If the Sangdong mine achieves its targets in the coming quarters, the current phase could be the perfect entry opportunity for investors who do not want to wait until the next price high to jump in.

Growth with Vision

Of course, every mining project comes with its challenges. The net loss of CAD 161.9 million in 2025 may not look good at first glance, but it is almost entirely due to accounting effects. Since the company's own stock price has risen so sharply, liabilities had to be revalued, which, however, has absolutely no impact on operating cash flow. On the contrary, the company is more financially stable than ever before. You can really feel the commitment of the team working at every site. It is not just about extracting rocks from the ground; it is about securing the technological future of the West. Whether in microchips, electric vehicles, or in the defense sector, without Almonty's tungsten, the future will not work.

Bank of America has re-rated Almonty: Lewis Black lays it all out
https://youtu.be/yKWEA8oMgKQ.

Conclusion: A rock-solid foundation

In summary, Almonty Industries is a rare find in the commodities sector. The company combines a systemically critical resource with geographically secure production and a management team that thinks several steps ahead. The current uncertainty in global politics and the fragile peace agreements in the Middle East only underscore once again how important Almonty's work is. It is no longer just a small player on the sidelines, but a strategic partner for governments and global corporations. Almonty Industries has proven that with smart planning and operational precision, it is possible to grow even in the most difficult times. The transition from developer to producer was a success. Those who believe in the long-term demand for tungsten will find Almonty to be a company that is ideally positioned. The signs continue to point to growth, and the fundamentals could hardly be better. The company presents itself today as a stable component for any forward-looking portfolio. In times of weakness, accumulating shares is likely to pay off.