Take advantage of setbacks among industry leaders: A strategic entry into Almonty Industries, Rheinmetall, and D-Wave Quantum

Almonty Industries - Tungsten market leader outside China expands

Almonty Industries reported a net profit of CAD 33.2 million in the third quarter. This result was driven primarily by a non-cash book gain of CAD 34.5 million from the revaluation of warrant liabilities. Adjusted EBITDA came in at CAD -2.2 million. Revenue increased by 28% year-on-year to CAD 8.7 million, mainly due to higher tungsten prices and steady production at the Panasqueira mine in Portugal. General and administrative expenses increased to CAD 3.7 million, partly due to the Company's uplisting on the Nasdaq in July 2025. Cash and cash equivalents amounted to CAD 111.6 million as of September 30, 2025.

Operationally, the flagship Sangdong project in South Korea is progressing on schedule. Construction work is largely complete, and production ramp-up is underway. The goal is to move quickly to the final project commissioning and commercial production. In parallel, the Company has launched a large-scale drilling program at its Panasqueira mine in Portugal. This program covers approximately 14,000 meters of drilling with an investment of EUR 2.5 million, aimed at developing the new production level, Level 4.

In addition to these operational developments, Almonty has further strengthened its strategic positioning outside of China. The acquisition of the Gentung Browns Lake Tungsten Project in Beaverhead County, Montana, USA, for a total consideration of USD 9.75 million, strengthens the portfolio with another advanced project that could go into production as early as the second half of 2026. This acquisition underscores Almonty's strategic goal of establishing itself as the leading tungsten supplier to allied industries amid rising global demand. The stock is currently trading at USD 6.20, well below Oppenheimer's price target of USD 12.

Rheinmetall - Expands ammunition production network

Rheinmetall is vigorously pursuing the expansion of its ammunition capacities in Europe. A key component is the new plant in Baisogala, Lithuania, which will cost up to EUR 300 million and is expected to produce several tens of thousands of 155 mm artillery shells per year. The joint venture Rheinmetall Defence Lietuva, UAB, which operates the plant, will create around 150 jobs. At the same time, the partners signed a memorandum of understanding to establish a center of excellence for propellants. These projects underscore the commitment to alliance security on NATO's eastern flank.

The expansion continues in Southeast Europe. Together with Pirochim Victoria, Rheinmetall is establishing the joint venture Rheinmetall Victoria SA in Romania. The total investment for the powder plant amounts to more than EUR 500 million. The planned annual production capacity is around 300,000 modular propellants, for which approximately 750 tons of powder are required. Around 700 jobs will be created locally. Also in Bulgaria, a joint venture with VMZ has been forged with investments of approximately EUR 1 billion, which is expected to produce around 100,000 projectiles annually from 2027.

Another strategic pillar is the initiative for independent e-fuel production by European armed forces. The "Giga PtX" project aims to produce fuel locally and independently of global fossil fuel supply chains. Together with its partners Greenlyte Carbon Technologies, Sunfire, and INERATEC, Rheinmetall is planning a network of modular plants that can synthesize 5,000 to 7,000 tons of fuel per year per module. This is intended to strengthen the energy self-sufficiency of the armed forces in the long term. One share currently costs EUR 1,707.50.

D-Wave Quantum – A niche leader under pressure

D-Wave Quantum has carved out a unique market position for itself with its focus on quantum annealing. This specialized form of quantum computing is particularly suitable for complex optimization tasks, such as those encountered in logistics or drug discovery. Unlike traditional computers, the Company uses qubits, which can process multiple states simultaneously. By transferring a system to a low-energy state, it finds the optimal solution. QBTS has already proven this pragmatic approach in numerous customer projects, demonstrating real-world applications beyond research at an early stage.

At first glance, the Company's financial base appears solid. With cash and cash equivalents of USD 819.31 million and moderate debt of only USD 39.98 million, QBTS has a considerable cushion for further investments. This is also necessary, as operating cash flow was recently at USD -50.62 million. Revenues, albeit at a low level, are showing dynamic growth and increasing significantly. This combination of specialized technology, initial commercial applications, and a strong balance sheet makes D-Wave a respected niche leader in its segment.

Nevertheless, the Company faces significant challenges. Quantum annealing technology is not suitable for all problems, as its flexibility is limited compared to other approaches. In addition, like many competitors in the quantum field, QBTS is still far from profitability. The highly competitive market and rapid progress in alternative technologies, such as the gate-based systems of tech giants, pose a permanent risk. The fundamental valuation metrics are currently unattractive to traditional investors, making QBTS a clearly speculative investment. One share certificate currently costs USD 29.74.

In volatile phases, setbacks offer strategic entry opportunities for companies with a clear competitive advantage. Almonty Industries is consolidating its role as the tungsten market leader outside China with the imminent commissioning of its flagship Sangdong project and strategic acquisitions. Rheinmetall is massively strengthening European defense capabilities by expanding its ammunition network and investing in new plants. D-Wave Quantum, on the other hand, remains a speculative investment as a niche leader in quantum computing, which, despite its unique technology, is still far from profitability. For long-term investors, Almonty and Rheinmetall are the more convincing choices.