The raw materials revolution with Almonty Industries, Barrick Gold, and ASML - The architects of the digital future

Breakthrough for Almonty Industries in South Korea: Government stands united behind major tungsten project

Green light for one of the most important tungsten companies. Last week, representatives from the local, regional and national government of South Korea reaffirmed their full support for the Sangdong mine project of Almonty Industries. The public backing marks a decisive milestone for the major project, which is in its final construction phase.

The plant's foundation work is well advanced. Over 22,000 m3 of concrete has been used to date. A 3 km-long underground tunnel system has already been completed according to the latest safety standards. CEO Lewis Black is strictly controlling costs - the current budget overrun is only 3%.

The strategic importance of the mine project is emphasized by the current market situation: 97% of the tungsten oxide used in South Korea currently comes from China. The South Korean government is actively supporting the development of alternative sources of supply to reduce this dependency. Tungsten is primarily used in the steel industry, electronic products, and the military. With the opening of this mine, 10% of the global tungsten demand could be met. The mine still has reserves of 58 million tons of tungsten.

The first production phase is scheduled to start as early as Q1 2025. From the outset, the Sangdong plant was designed to double its capacity at a later stage – the initial processing capacity of 645,000 tons per year can be expanded to 1.2 million tons. Pilot plants in Portugal and Korea have already successfully validated the production process.

A significant molybdenum deposit located only 150 m from the existing infrastructure offers additional potential. Molybdenum is another heavy metal. With its extremely high melting point of 2623 °C, it is particularly in demand for electric mobility. The demand for molybdenum is increasing. A large proportion of molybdenum is used in the steel industry, where it significantly improves the properties of steel as an alloying element. Demand is continuously growing, particularly in South Korea, which has become the second-largest importer worldwide.

Almonty Industries' stock is reacting positively to these developments. The Company, which already operates a profitable tungsten mine in Portugal, is thus consolidating its position as a leading Western tungsten producer. With the Sangdong project, which is considered the largest tungsten mine in the world, Almonty Industries is on the verge of a significant growth phase.

Barrick Gold reports solid third quarter - Gold production of 943,000 ounces

Toronto-based Barrick Gold Corporation is one of the world's leading gold producers. The Company has now announced its preliminary production figures for the third quarter of 2024. The Company produced 943,000 oz of gold and 48,000 tons of copper. Sales amounted to 967,000 oz of gold and 42,000 tons of copper.

Gold production was in line with the second quarter. Pueblo Viejo performed particularly well, with production increasing 23% due to optimized equipment. The North Mara mine also had a strong quarter thanks to higher ore grades. The average market price for gold in the third quarter was USD 2,474 per ounce, while copper cost USD 4.18 per pound on average.

Barrick expects significantly higher production in the fourth quarter. This is expected to be helped by the expanded Gold Quarry roaster at Carlin and improved access to high-grade underground areas at the Kibali mine. The Company expects to achieve its annual guidance for gold and copper.

Last month, Barrick Gold was able to achieve a price gain of 3.22%. According to Zacks, the stock outperformed the basic materials sector, which rose by only 1.21% over the same period. The S&P 500 recorded a plus of 2.76% over the same period.

Investors are now looking forward to the upcoming quarterly results, which will be released on November 7. Analysts expect earnings per share of USD 0.35, corresponding to year-on-year growth of 45.83%.

ASML expects growth in 2026 despite ongoing China restrictions

The Dutch semiconductor equipment manufacturer ASML anticipates significant growth in 2026, even though US export restrictions on China are likely to remain in place regardless of the outcome of the US presidential elections. This was stated by ASML's new CEO, Christophe Fouquet, in a statement. While ASML sees great potential in the AI sector, Fouquet emphasizes that other market segments are recovering more slowly.

The world's leading manufacturer of lithography systems for chip production expects China's share of its business to fall from 50% to around 20% of total sales. In the future, ASML will only be allowed to sell older technology generations in China. Lithography is the process by which extremely fine circuit patterns are transferred to silicon wafers. The word "wafer" originally meant "thin biscuit" or "thin slice of bread" – and that is precisely what wafers look like. These wafers are the basis for the production of microchips and are used for integrated circuits.

ASML is the market leader in this field, followed by Zeiss, Canon, Nikon and Veeco. Lithography systems are a key technology for the entire semiconductor industry and the associated digital transformation.

For the current fourth quarter of 2024, ASML is forecasting revenue of between EUR 8.8 and 9.2 billion. Total revenue for 2024 is expected to be around EUR 28 billion, with the Company targeting EUR 30 to 35 billion for 2025. In the first nine months of 2024, ASML generated a net profit of EUR 4.878 billion, a year-on-year decline of 15.8%. Revenues decreased 6.5% to EUR 19 billion over the period. However, the third quarter showed a positive trend with a 9.7% increase in profits to EUR 2.077 billion and an 11.9% increase in revenues to EUR 7.467 billion.

The Sangdong mine, in the care of Almonty Industries in South Korea, is becoming the strategic ace up the sleeve of the Western economy. With the capacity to meet 10% of global tungsten demand, Almonty offers an important alternative to Chinese dominance. Strict cost control and broad political support make the Company particularly interesting. Gold giant Barrick is in robust shape. Stable production and an expected 45.83% year-on-year profit increase point to a positive development. The combination of gold and copper production offers promising opportunities for profit growth. Despite geopolitical challenges, ASML expects sales of EUR 30 to 35 billion in 2025. The Company sees particularly strong growth potential in the AI sector, even if China's share of total sales will fall from 50% to around 20%. These three companies offer investors the opportunity to benefit from various aspects of technological development - from strategic raw materials to precious metals and high-tech equipment.