Moat investments combine opportunity and stability: Almonty, Anglo American, Dowa Holdings

Almonty leaves Chinese competition in the dust – CEO Lewis Black: "We have a 10-year head start."

Since its founding over a decade ago, Almonty Industries has specialized in the strategic metal tungsten – a raw material essential for defense, aerospace, electronics, and mechanical engineering, with very few substitutes. While China dominates more than 80% of global tungsten production, Almonty is closing the gap in the West with high-grade deposits and advanced technology. The Company operates the Panasqueira mine in Portugal and is preparing to bring its flagship Sangdong mine in South Korea online, once one of the world's largest tungsten mines. Drawing on decades of experience, Almonty is ramping up production at Sangdong, which is expected to account for 40% of tungsten production outside China after expansion. Not only has Almonty CEO Lewis Black been involved with this rare commodity for decades, but the Panasqueira mine in Portugal also has more than 100 years of practical mining experience with tungsten. Complemented by insights gained by Almonty in its own tungsten laboratory in Portugal, Almonty scores highly with its exceptional technology. Studies indicate that production costs at Sangdong could be around 50% lower than those of Chinese competitors, offering shareholders a significant long-term advantage. This is all the more true given Almonty's announcement a few weeks ago that it would be acquiring a tungsten mine in the US state of Montana. Here, too, Almonty's unparalleled technology and the experience of its engineers and miners are expected to deliver unique results.

In a recent interview with the Frankfurter Allgemeine Zeitung (FAZ), CEO Lewis Black emphasized that Almonty is 10 years ahead of its Chinese competitors in tungsten extraction and processing. He explained that during the 2010s, the Company had to defend itself against subsidized competition from China to survive. Today, the landscape is different - while China is attempting to regain competitiveness, companies that can profitably operate tungsten mines without subsidies are rare. The tungsten mine just acquired by Almonty is set to become the only producing tungsten deposit in the US from the second half of 2026, highlighting Almonty's unique global position. Competitors from Asia are also apparently copying Almonty, as Lewis Black also reported in his interview with the FAZ, the number of hacker attacks and interested "mine tourists" at the unique Sangdong project is increasing. This demonstrates that Almonty is uniquely positioned worldwide and possesses the crucial expertise to turn tungsten properties into operating mines. The low purchase price of around USD 10 million for the Montana project underscores that a property only becomes a mine when entrusted to the right specialists.

Anglo American and Dowa Holdings: Technology reduces costs

Anglo American also sees itself as an innovative specialist. The mining group, which traditionally has a strong diamond business, has been focusing for some time on metals of the future related to the megatrends of decarbonization, electromobility, and food security. To this end, Anglo American is continuing to expand its copper business. This is accompanied by innovative processes: under the FutureSmart Mining concept, Anglo invested early on in innovations that promote both efficiency and sustainability. Examples include bulk ore sorting and coarse particle recovery. These are processes that allow ore to be sorted immediately after crushing and larger particles to be processed directly. The result: Significantly lower energy and water consumption in the processing plants, which not only saves costs but also supports Anglo's ambitious environmental goals. By 2030, the Company aims to reduce its energy consumption by 30% and its fresh water consumption by 50%.

The Japanese company Dowa Holdings is taking a similar approach, relying on a comprehensive process for metal processing. The group collects waste and recycled raw materials worldwide, recovers a variety of elements using state-of-the-art metallurgy, and processes them into high-tech materials. Dowa disposes of non-recyclable material to minimize environmental damage. At the same time, Dowa supplies specialty products and offers technologies that extend the life of products. This model of a fully integrated circular economy gives Dowa a high level of industrial synergy and an ESG-compliant competitive advantage. In Japan, a high-tech country with few resources, Dowa is thus the system supplier for the circular economy – an approach that is increasingly being discussed in connection with independent supply chains for critical metals, but which cannot be the solution in all areas.

Almonty – A unique opportunity

When it comes to metals of the highest quality for special purposes, recycling quickly reaches its limits. One example is tungsten for armor or for use in the manufacture of semiconductors. The current market phase shows that there are some companies that have an advantage over their competitors when it comes to raw materials. Almonty Industries stands out in this regard. The Company, which was able to acquire tungsten mines in the West for as little as EUR 1 during the 2010s because the previous owners were unable to manage them, has continued to expand its expertise in recent years due to competition from China. The result is a company whose business model will remain unchallenged for years to come. Those who seek to secure a supply of tungsten from stable regions, in line with ESG standards and at market prices, cannot ignore Almonty. The massive Sangdong mine, which scores highly not only with low production costs but also with smart technology and ESG in line with the latest requirements, is set to make its mark this year. This is also a unique starting point for investors. This is all the more true after the market correction of the past few trading days.