Almonty Industries Enters Critical Production Phase at Key Tungsten Mine

The new year marks a pivotal operational transition for Almonty Industries. The company’s flagship Sangdong tungsten mine in South Korea has officially moved from development into production, setting the stage for a quarter that will test its ramp-up to full capacity. With a Nasdaq valuation of approximately CAD 3 billion, Almonty is positioned to become a major non-Chinese tungsten source for Western nations.

A significant driver for Almonty’s growth is geopolitical. According to a January 3 report in the Korea Times, the company has established itself as an exclusive tungsten supplier for U.S. defense applications. This aligns with a forthcoming U.S. Department of Defense policy, effective January 2027, to exclude tungsten sourced from non-allied nations—including China, Russia, and North Korea—from its procurement.

China currently controls over 80% of global tungsten supply. At full capacity, Sangdong is projected to supply more than 40% of the demand not met by China, Russia, and North Korea. Consequently, the mine is emerging as a crucial alternative for the U.S. and allied countries, particularly for defense, semiconductor, and aerospace industries. The U.S. House Select Committee on the Chinese Communist Party has directly engaged with Almonty, inquiring about production capabilities and potential state support to ensure reliable supply to the U.S. market.

Sangdong Mine: From Blueprint to Reality

The formal conclusion of the development phase, ongoing since the project's acquisition in 2015, was signaled on December 16 when the first truckload of ore was deposited at the Sangdong run-of-mine pad. CEO Lewis Black described this as a strategic inflection point for strengthening the global tungsten supply chain.

The deposit's key metrics underscore its scale:
* Reserves: 7.9 million tonnes of ore
* Average Grade: 0.47% WO₃ (tungsten trioxide)
* Contained Metal: 3.7 million metric tonne units
* Ore Grade: Approximately three times higher than comparable global projects

The processing plant is mechanically complete, with the dryer section currently undergoing commissioning. Initial feedback indicates recovery rates are exceeding previous expectations. The full ramp-up to an annualized processing capacity of roughly 640,000 tonnes of ore is scheduled for completion by the end of Q1 2026.

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

A Series of U.S.-Focused Corporate Moves

Almonty has taken decisive steps to deepen its roots in the United States:
* July 2025: Completed its Nasdaq listing, raising $90 million.
* November 2025: Acquired the Gentung Browns Lake tungsten project in Montana for $9.75 million, targeting a production start in the second half of 2026.
* December 2025: Relocated its corporate headquarters from Toronto to Delaware.
* December 2025: Appointed retired Brigadier General Steven L. Allen as Chief Operating Officer.
* December 2025: Executed a capital raise of $129.4 million, led by Bank of America. The offering was oversubscribed, with the overallotment option fully exercised.

These actions embed the company more firmly within U.S. regulatory frameworks and defense-adjacent networks—a strategic advantage ahead of the Pentagon’s 2027 procurement rules.

Financial Position and Analyst Sentiment

Following the December capital raise, management states the company is fully funded for its current project pipeline, with no immediate need for additional financing. Proceeds are allocated to the final commissioning of Sangdong, exploration at Gentung Browns Lake, expansion of the Panasqueira mine in Portugal, and drill programs to develop the molybdenum resource at Sangdong.

Analyst coverage remains favorable. After discussions with management, DA Davidson reaffirmed a Buy rating on December 19 with a $12.00 price target. Sphene Capital maintains a price target of CAD 13.50. Both firms cite reduced project risk following the first ore delivery at Sangdong.

The Forthcoming Operational Crucible

The first quarter of 2026 represents a critical operational test. Key milestones include:
* Commissioning the crushing, grinding, and flotation circuits.
* Achieving stable throughput rates.
* Ramping up to fulfill existing offtake agreements.
* Transitioning to commercial production during the first half of 2026.

The next major catalyst will be the release of Q1 figures in May, which will provide the first concrete production data from Sangdong’s ramp-up phase. Concurrently, CEO Black is pursuing a long-term "Korean Trinity" strategy: building an integrated value chain in South Korea for strategic metals—from tungsten mining at Sangdong, through a planned tungsten oxide plant, to the development of the site’s molybdenum resource.