Almonty Industries Secures Strategic US Foothold in Tungsten Market

Almonty Industries has executed a strategic maneuver that positions the company as a direct competitor in the critical minerals sector. By acquiring the Gentung Browns Lake project in Montana, the Canadian firm gains immediate access to the American market, directly challenging China's long-standing dominance in tungsten supply. This move occurs as the company's financial reserves have swelled, prompting investors to consider whether this marks a pivotal moment for the revaluation of Western resource suppliers.

The company's financial position has never been stronger, providing a solid foundation for its recent strategic acquisition. Following its July listing on the Nasdaq, Almonty's cash reserves have seen a dramatic increase. Recent third-quarter results highlight this transformation: the cash balance surged from approximately $8 million at the end of 2024 to a substantial $111.6 million. Concurrently, revenue climbed by 28 percent, eliminating any immediate need for external financing and allowing the company to operate from a position of strength.

The finalized acquisition of the Gentung Browns Lake project, completed earlier this week, represents a strategically astute transaction. The total consideration was approximately $9.8 million, with only $0.75 million paid in cash. The majority, a significant $9.0 million, was settled through the issuance of Almonty shares. This structure preserves liquidity for operational development. Furthermore, the project benefits from existing infrastructure, enabling a potentially rapid production ramp-up.

Challenging Chinese Tungsten Supremacy

This acquisition strategically addresses a critical vulnerability in the US supply chain. China currently controls over 80% of the global tungsten supply—a situation of significant concern to the US Department of Defense and various industries. Almonty is now aggressively positioning itself as a "Western Tungsten Powerhouse," offering a reliable alternative.

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

The company's strategy is built on two major operational pillars:
* South Korea: The large-scale Sangdong mine is on the verge of achieving full operational status.
* United States: The newly acquired Gentung project is scheduled to commence production in the second half of 2026.

Market analysts have responded positively to this dual-pronged approach. The investment firm D.A. Davidson not only reaffirmed its buy recommendation this Tuesday but also elevated its price target to a robust $12.00 per share. The analysts cited an improved market environment and reduced risk profile for the flagship South Korean project as key reasons for their optimistic outlook.

A Pivotal Year for Execution

The market's focus now shifts to operational execution. While preparations begin in the US for an anticipated annual output of 140,000 MTU, the Sangdong mine in South Korea is expected to imminently generate its first cash flows. Investors are advised to monitor the company's fourth-quarter updates closely. From a technical perspective, the stock has demonstrated relative strength following its Nasdaq debut. If Almonty successfully transitions from a developer to a global producer in the coming year, current share prices may, in retrospect, appear highly attractive.