Almonty Industries: A Strategic Shift in the Tungsten Sector

The recent quarterly report from Almonty Industries, released on November 3rd, signals a profound operational transformation for the tungsten specialist. The company announced a dramatic reversal in its financial performance, posting a net profit of CAD 33.2 million. This result stands in stark contrast to the CAD 5.3 million loss reported for the same quarter in the previous year, marking a significant milestone.

A substantial improvement in the company's financial foundation is now evident. Cash reserves have experienced a remarkable surge, growing from CAD 7.8 million to CAD 111.6 million. This impressive liquidity boost was primarily driven by the company's July 2025 Nasdaq listing and its associated public offering.

Key details from the quarterly financial statements include:
- A warrant valuation gain of CAD 34.5 million
- General and administrative expenses of CAD 3.7 million, reflecting an increase from CAD 1.3 million
- An adjusted EBITDA that remained negative at CAD 2.2 million
- Diluted earnings per share of CAD 0.13

The central question for investors is whether management can leverage this newfound financial strength to build a foundation for sustained profitability.

The Sangdong Mine: A Potential Global Game-Changer

All eyes are on the company's flagship project in South Korea. The construction of the Sangdong mine is nearing completion, with commissioning activities already underway and commercial production on the horizon. Upon reaching full operational capacity, this single asset is projected to supply more than 80% of the world's tungsten production originating outside of China. This would cement Almonty's position as the largest tungsten producer in the Western world.

The strategic importance of tungsten has been magnified by ongoing geopolitical tensions. The metal has become a critical component for several high-stakes industries, including:
- Military armor and ammunition
- Advanced electronics manufacturing
- Defense procurement programs

Should investors sell immediately? Or is it worth buying Almonty?

Favorable Market Dynamics and Strategic Moves

The broader market environment appears highly supportive. Tungsten prices have climbed to multi-year highs, currently trading in the range of USD 580 to USD 645 per metric ton unit. Market analysts anticipate structural price improvements that could establish a long-term support level between USD 400 and USD 450.

This bullish outlook is underpinned by several powerful trends:
- U.S. defense restrictions on the use of Chinese tungsten
- Export controls implemented by China itself
- Growing demand from allied nations seeking to secure their supply chains for critical materials

To capitalize on these conditions, Almonty is actively expanding its footprint. The company has moved to acquire a tungsten project in Montana for USD 10 million. This U.S. asset could potentially commence production as early as the second half of 2026, further diversifying the company's geographical presence.

Simultaneously, Almonty has initiated an extensive drilling program at its Sangdong molybdenum project. This initiative is strategically aimed at securing mineral reserves to address the persistent global shortage of molybdenum.

With established operations in Portugal, additional projects in Spain, and the newly acquired asset in Montana, Almonty is uniquely positioned to benefit from the current market dynamics. The critical challenge that remains is the management's ability to successfully navigate the company's transition from a development-stage enterprise to a fully-fledged production leader.