Almonty Industries Enters a Transformative Production Era

The commencement of commercial operations at the Sangdong tungsten mine in South Korea marks a fundamental shift for Almonty Industries. The company is transitioning from a project developer to an active producer, a move that is set to dramatically alter its revenue trajectory and risk profile.

The company's operational pivot comes at a favorable moment in the tungsten market. Current spot prices hover near USD 800 per metric tonne unit (MTU), significantly above the USD 200–300 per MTU assumptions used in original mine planning. CEO Lewis Black has indicated that prices could potentially reach USD 1,000 per MTU.

This pricing strength is underpinned by a concentrated global supply chain, with China controlling over 80% of output. A notable shift is on the horizon: the U.S. Department of Defense has mandated the sourcing of tungsten from outside China beginning in 2027. Sangdong's production is strategically positioned to help fill this impending supply gap for Western consumers in the defense, semiconductor, and aerospace sectors.

Sangdong Mine: From Development to Delivery

The operational milestone was achieved with the first truckload of ore delivered to the run-of-mine (ROM) pad, signaling the official start of commercial activity. This concludes a multi-year development phase, with a substantial revenue inflection point anticipated from 2026 onward.

Sangdong ranks among the largest tungsten deposits outside of China. Its reserves are reported at approximately 8.57 million tonnes of ore, with an average tungsten trioxide grade of 0.42%. Initial annual capacity is planned for 640,000 tonnes of ore, with a medium-term target to double this to 1.2 million tonnes.

Key operational progress includes:
- Successful initial ore transport to the ROM area
- Full commissioning of underground infrastructure
- Impending activation of the processing plant
- A secured 15-year offtake agreement with Global Tungsten & Powders

Financial Fortitude and Project Pipeline

Almonty recently bolstered its balance sheet through an upsized public offering, raising gross proceeds of USD 129.375 million, which included the full exercise of the over-allotment option. Subsequently, the company voluntarily withdrew its base shelf prospectus, suggesting no immediate need for further equity financing.

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

This enhanced liquidity substantially mitigates perceived operational execution risks. The capital is earmarked for several strategic initiatives:
- Exploration at the newly acquired Gentung-Browns Lake project in Montana
- Expansion investments at the Panasqueira mine in Portugal
- Development of the molybdenum deposit at Sangdong

The Montana project introduces a new strategic dimension, as it could become the first U.S. tungsten production in roughly a decade, directly addressing the nation's complete import reliance for this critical mineral.

Revised Revenue Trajectory

Analysts at Oppenheimer project a steep upward climb in revenue, based on conservative tungsten price assumptions:
- Forecasts exceed CAD 100 million for 2026
- Estimates surpass CAD 600 million by 2028

Should the current elevated price environment persist, the financial outcome could potentially exceed these baseline projections.

Forthcoming Operational Catalysts

Attention now turns to the final stages of plant commissioning. Near-term milestones critical for investor focus are:
- Initial data on concentrate production
- Commencement of customer shipments
- Achievement of stable production metrics
- Full commissioning of the Sangdong processing plant, scheduled for July

Building an Integrated Platform

Almonty's evolution from a speculative developer to a producing miner fundamentally reshapes its investment proposition. The successful initial ore delivery demonstrates operational execution capability and materially de-risks the project.

Coupled with its "Korean Trinity" strategy—integrating tungsten mining, molybdenum development, and tungsten trioxide refining—the company is building a vertically integrated platform for critical minerals. This model is explicitly designed to enhance supply chain security for Western industries. The coming production months and the execution of expansion plans in Korea, Portugal, and Montana will now be decisive in realizing this broader strategic vision.