Starting point for the year-end rally! In the fast lane with Almonty Industries and Rheinmetall! What is happening with Hensoldt?

Almonty Industries – The titan of tungsten

Tungsten is a strategic metal indispensable to the defense industry, aviation, and high-tech sectors. However, high demand combined with the geographical concentration of deposits is increasingly challenging, as **over 80% of the market is controlled by China, Russia, and North Korea. The solution? Almonty Industries.

Almonty Industries is set to bring the Sangdong Mine in South Korea into operation soon, which is the world's largest facility outside China in terms of production volume. At full production capacity, it is expected to cover over 80% of Western non-Chinese production. Long-term offtake agreements with attractive price floors are already in place. This upcoming development has two major implications: the West's supply risks will be virtually eliminated, and shareholders can look forward to substantial profits.

The Company also scores highly in two other key areas: extensive expertise and modern facilities. Almonty has been producing tungsten in Portugal for many years and will soon expand its existing production with high-grade material, which is expected to increase output by 40%. The modernity of its facilities and processes is equally impressive – in this respect, Almonty is more than a decade ahead of China.

With the recent acquisition of a tungsten project in the United States, Almonty is further solidifying its position as the world's leading non-Chinese supplier of tungsten concentrate. The Company has entered into a binding agreement to acquire the Gentung Browns Lake tungsten project in Montana, USA, for approximately USD 9.75 million. The project is located in a historic tungsten region that once supplied the US strategic reserves and could go into production as early as the second half of 2026. Almonty has already secured extensive measures for further acquisitions, ensuring quick access to financial resources if needed.

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Rheinmetall – Looking ahead to the Capital Markets Day on November 18

The share price is currently consolidating at a high level around EUR 1,700, roughly 15% below the all-time high reached a few weeks ago. The market showed little reaction to the figures released at the beginning of November. Rheinmetall confirmed its outlook for the current fiscal year, but left room for speculation about stronger-than-expected performance. The Company anticipates a strong final quarter and reaffirmed its annual forecast, targeting a 25 to 30% increase in sales.

However, orders from the German government are delayed, which has led to weaker prices in the meantime. "We are becoming a global defense champion, not least thanks to the planned acquisition of NVL, Lürssen's marine division," explained CEO Papperger. According to the latest company announcement, Rheinmetall is also entering the production of space satellites. To this end, a joint venture has been established with the Finnish satellite company ICEYE, in which Rheinmetall holds a 60% stake. The first SAR satellite, which will provide the military with precise reconnaissance images, is scheduled to roll off the production line as early as next year.

Hensoldt – Forecast disappoints stock market

Hensoldt also presented solid quarterly figures at the beginning of the month. However, investors recently reacted with pronounced disappointment to the outlook presented by management during the capital markets day. In particular, the targets for the upcoming fiscal year were well below analysts' forecasts, leading to a sell-off in the stock. However, the guidance for 2030, with revenue of around EUR 6 billion and an operating margin of at least 20%, was well received. Following the price decline, the stock still has an upside potential of around 30% according to average analyst price targets.

Almonty is in an excellent strategic position, which will be reflected in high profitability. With further acquisitions, the Company will inexorably expand its position as the world's leading non-Chinese supplier of tungsten concentrate, which will continue to benefit the stock significantly. Investors in Rheinmetall are eagerly awaiting the outlook for the capital market day and order intake in the final quarter – now is a good time to pick up a few shares. At Hensoldt, the disappointing outlook has taken the wind out of its sails for the time being.