Almonty Industries Enters New Era with Strategic Korean Tungsten Mine

Almonty Industries Inc. has formally commenced commercial mining operations at its Sangdong tungsten mine in South Korea, marking the culmination of a decade-long development project. This milestone positions the company to become a pivotal non-Chinese supplier within the global tungsten supply chain, addressing growing geopolitical and procurement concerns among Western nations.

The company's operational leap forward is underpinned by a significantly reinforced balance sheet. In December, Almonty successfully closed an upsized, fully bought-deal equity offering led by BofA Securities, raising gross proceeds of US$129.4 million.

These funds are allocated for several key initiatives:
* Exploration and development of the Gentung Browns Lake tungsten project in Montana, USA.
* Expansion work at the Panasqueira mine in Portugal.
* Exploration activities at the Sangdong molybdenum deposit.
* General working capital and corporate purposes.

This capital raise has dramatically improved liquidity. As of September 30, 2025, Almonty held US$111.6 million in cash and equivalents, a substantial increase from the US$7.8 million reported at the end of 2024. This robust financial standing mitigates near-term funding risks and provides flexibility for concurrent project advancement.

Sangdong Mine: A Project of Scale and History

The transition to full-scale production is now underway, with the first truckload of ore successfully delivered to the Run-of-Mine (ROM) pad. Crushing, grinding, and flotation circuits are operating as planned to support the ramp-up to steady-state operations.

Key details of the Sangdong asset include:
* Total Reserves: 7.9 million tonnes grading 0.47% tungsten trioxide (WO₃) on average.
* Contained Metal: 3.7 million metric tonne units (MTUs).
* Historical Significance: For decades following the Korean War, the mine was responsible for over 50% of South Korea's export earnings at its peak.
* Previous Closure: Operations ceased in the 1990s due to depressed commodity prices.
* Acquisition: Almonty acquired the project in 2015, following the cessation of tungsten mining in the United States.

The current focus is on a systematic ramp-up, with ore moving from the ROM storage through various processing stages before entering a production stabilization phase.

A Geopolitical Pivot in Tungsten Supply

The reactivation of Sangdong carries substantial strategic weight. China currently controls more than 80% of global tungsten supply. With the U.S. Department of Defense mandating a halt to Chinese tungsten procurement from 2027, the urgency to establish alternative sources has intensified.

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CEO Lewis Black emphasized this strategic role, stating that Sangdong is a cornerstone in the efforts of the U.S., EU, and Korea to reduce dependency on the China-dominated market. At full capacity, the mine is projected to supply over 80% of the world's tungsten production originating outside of China, directly mitigating supply chain risks highlighted by U.S. procurement bans and Chinese export controls.

Almonty's envisioned "Korean Trinity" strategy—integrating the tungsten mine, a planned tungsten oxide plant, and the development of the molybdenum deposit—aims to create a fully integrated value chain for these critical metals.

Leadership and Market Endorsement

Supporting its operational goals, Almonty appointed retired Brigadier General Steven L. Allen as Chief Operating Officer, effective December 1, 2025. He brings 33 years of U.S. military leadership experience, including extensive service in Korea, with a focus on optimizing tungsten deliveries across the company's global sites.

The market responded positively to the commercial start announcement. On the Nasdaq, Almonty shares advanced 9%. The company's market capitalization now approaches US$2.8 billion.

Analyst sentiment is also strengthening. DA Davidson raised its price target to US$12, while Oppenheimer increased its target from US$7 to US$12. Furthermore, Almonty was included in the TSX30, a flagship ranking of the top 30 TSX-listed stocks over three years based on dividend-adjusted share price performance.

Path to Integrated Production

The ROM area now serves as the central hub for mined ore before it undergoes primary and secondary crushing, milling, and flotation. The final concentrate will then be prepared for shipment to customers downstream.

Following the completion of stability and performance verification tests, the company will move into the production stabilization phase. Combined with the planned oxide plant and molybdenum deposit development, Almonty is methodically working to bring its integrated "Korean Trinity" operational model to fruition.