Tungsten prices skyrocket! Almonty Industries profits! RENK with new forecast? Steyr Motors goes full throttle!

Almonty: Tungsten price races ahead! Analysts recommend buying

While the world tends to focus on gold, silver, and rare earths, tungsten is increasingly becoming the star of the commodity world and a "real" precious metal. Since mid-May alone, it has risen from USD 400/mtu to over USD 500/mtu. At the beginning of 2025, the price was just over USD 300/mtu. It should be noted that the price is strongly influenced by China, where around 80% of global supply is mined. For many years, they were able to keep prices low, making the development of deposits in Western countries unattractive. This is now coming back to haunt the West, as China is increasingly using this critical raw material as a geopolitical weapon.

Investors can benefit from this development with Almonty Industries shares. Despite challenging market conditions, CEO Lewis Black has pushed ahead with the development of the Sangdong mine in South Korea in recent years. It is scheduled to go into operation this year and is expected to generate billions for Almonty in the coming decades. The stock has surged this year and celebrated an interim high with its IPO on the Nasdaq. The emphasis is on "temporary". The success story is far from over.

Analysts at Oppenheimer agree. They published their initial study on Almonty last week. Their conclusion is clear: they rate the tungsten producer's shares as "Outperform" and see the fair value at USD 7. The stock, which is also heavily traded on German stock exchanges, is currently trading at around USD 4.50. Analysts expect tungsten production to triple by 2027. At full capacity, Almonty could even account for around 80% of "western supply."

The CEO also recently commented positively on the operational development. Lewis Black told miningweekly.com: "The development of Sangdong reached a key milestone in the second quarter. With all processing facilities now installed and the final drawdown of a loan from German state-owned development bank KfW's subsidiary, International Project and Export Finance, completed, the construction of the mine is virtually complete."

This suggests that the current share price level could present an interesting opportunity to enter or add to a position in Almonty.

Steyr Motors: On course for expansion

While Almonty can be considered a bargain compared to peers like MP Materials, Steyr Motors has already priced in some of its future growth. Nevertheless, the Austrians are continuing to push ahead with their expansion in the military sector in order to grow into their valuation.

The supplier of customized engines for military and civilian applications has announced its market entry in Poland. It plans to work with Taurus Sea Power as its local partner with immediate effect. The long-term framework agreement with the established distributor for marine engines covers exclusive cooperation in sales, spare parts, and service for Steyr Motors' marine engines. In addition to Poland, the Company also has its sights set on the markets in neighboring Eastern European countries. From Steyr's perspective, they all play a central role in the security policy context of the EU and NATO and offer considerable growth potential.

Steyr CEO commented: "The market entry in Poland is a milestone for our international growth strategy. At the same time, it is an important step toward geographical diversification within our core market of Europe."

The Steyr share had consolidated in recent weeks. Over the past four weeks, the stock lost around 14% of its value. For the year as a whole, the performance stands at an impressive 280%.

RENK: Countdown to November

RENK shares performed well yesterday, gaining around 2.50% to close at EUR 62.50. The Company is still benefiting from its better half-year figures compared to Rheinmetall and Hensoldt. In particular, the gearbox specialist's order intake is outperforming its industry peers.

On Friday, Deutsche Bank expressed a bullish view on the defense stock. The latest half-year figures have convinced analysts. They see the capital market day in November as the next price driver for the stock. Deutsche Bank raised its target price for RENK shares from EUR 73 to EUR 75.

JPMorgan analysts even believe that RENK shares could reach EUR 90. They, too, expect exciting news in November. Management has announced new medium-term targets through 2030 for the upcoming Capital Markets Day. Anything less than an upward revision would be a huge disappointment. Analysts consider the chances of short-term peace in Ukraine to be slim and instead anticipate a rally in RENK shares.

Shares in the defense sector remain exciting. Almonty, set to become the largest Western tungsten producer, is facing a golden future. Steyr is not a bargain, but the Austrians are going full throttle. RENK has emerged somewhat from the shadow of Rheinmetall with its half-year figures. Will the medium-term targets be raised in November?