Almonty Industries Gains Strategic Momentum with Key Milestones

A recent feature by CBS News has propelled Canadian mining firm Almonty Industries and its flagship Sangdong tungsten project in South Korea into the national conversation. The coverage highlights the mine's potential role in bolstering U.S. defense supply chains and securing critical mineral sources independent of China. This media attention coincides with the company's announcement of several significant operational achievements in December, marking a clear shift from project development to active production.

December proved to be a pivotal month for Almonty, with three concrete developments underpinning its transition:

• December 16: The company initiated commercial mining operations at Sangdong, with the first truckload of ore deposited at the run-of-mine stockpile.
• December 10: Almonty successfully closed a fully placed public offering, raising gross proceeds of $129 million.
• December 15: A voluntary withdrawal of the company's base shelf prospectus was filed, a move typically indicating that near-term project financing requirements are satisfied.

The commencement of commercial extraction represents the critical leap from a development-stage company to an operational producer. Furthermore, the completed capital raise and subsequent prospectus withdrawal have alleviated immediate concerns over equity dilution, allowing the market to focus squarely on operational execution.

Geopolitical Significance Amplifies Project Value

The strategic importance of the Sangdong mine was underscored by its feature in a CBS report titled “South Korean mine could soon supply the U.S. with a critical mineral.” In the segment, CEO Lewis Black detailed the project's relevance to U.S. security policy, confirming a commitment made to the White House to supply tungsten for national security needs.

This narrative positions Almonty as a prospective key Western supplier of a material deemed critical, emphasizing the geopolitical premium attached to non-Chinese sources. China's dominance in rare earths and critical minerals has intensified efforts by Western nations to diversify their supply bases, a trend highlighted by recent tightened export controls from China, including the conviction of 27 individuals for antimony smuggling since September 2024.

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

Often referred to as a "war metal," tungsten is an essential component in advanced defense systems, including:
* Armor plating for tanks and vehicles
* Penetrators in armor-piercing ammunition and bunker-busting bombs
* Components for fighter jets and AI-guided missiles

Sangdong is among the few major non-Chinese deposits capable of meeting the volume and quality specifications required by Western high-tech and military programs. At full capacity, the mine is projected to supply over 80% of the world's tungsten production originating outside of China. Key data points from the CBS coverage note Sangdong's resource base of several million tonnes of ore and a planned annual production rate of 1.2 million tonnes of ore once fully ramped up.

Path Forward: Ramping Up to Full Production

With mining now underway and its balance sheet strengthened, Almonty's focus turns to commissioning the processing plant and scaling output. Management's roadmap targets a gradual increase toward full commercial production by early 2026.

The investment thesis for Almonty shares in the coming months is expected to hinge primarily on two factors:
1. Detailed progress updates on the commissioning and ramp-up of the processing circuit.
2. Potential additional offtake agreements for production volumes not yet under contract.

The December milestones have mitigated core project risks, providing a foundation for the ongoing re-rating of the stock. With the capital raise complete, investor attention can now be directed toward the operational milestones at the Sangdong project as the company advances toward becoming a significant producer in a strategically vital sector.