Almonty Shares Slide Despite Superficially Strong Quarterly Report

Investors in Canadian tungsten producer Almonty Industries were confronted with a puzzling market response this week. The company's stock plummeted more than 5% following the release of what appeared, at first glance, to be robust third-quarter 2025 results, creating a significant disconnect between the headline numbers and investor sentiment.

Almonty reported on Monday that its quarterly revenue had advanced by 28% to $8.7 million CAD. The most eye-catching figure was a net profit of $33.19 million CAD, a dramatic reversal from the $5.32 million CAD loss recorded in the same period a year earlier. However, the market swiftly looked past this surface-level strength.

The substantial jump in profitability was not driven by core operational improvements. Instead, it was primarily the result of a one-time, non-cash accounting gain stemming from the revaluation of warrant liabilities. When this exceptional item is excluded, the company's underlying performance reveals a different story, with an adjusted EBITDA loss of $2.2 million CAD. This clarification prompted a swift sell-off, sending the share price down 5.10% to $8.74 by Tuesday.

A Critical Juncture for Production and Expansion

The company's near-term future is dominated by two key projects. The construction of its flagship Sangdong Mine in South Korea is now virtually complete. All attention is now focused on the critical ramp-up to commercial production. A successful transition would position Almonty as a major tungsten supplier outside of China.

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

In a parallel strategic move, Almonty has bolstered its project pipeline with the acquisition of a tungsten asset in Montana, USA. This project is targeted to begin production as early as the second half of 2026, potentially adding another significant source of revenue.

Strengthened Balance Sheet Fuels the Final Push

Financially, Almonty has substantially reinforced its position. The company's cash reserves have swelled from a modest $7.8 million at the end of 2024 to an impressive $111.6 million. This financial bolstering was achieved through a successful $90 million US capital raise in July, which also secured the company's listing on the Nasdaq exchange.

The central question for investors remains whether this improved financial footing and progressing project pipeline will finally translate into sustainable profitability. While some market analysts project that Almonty could reach profitability within the next three years, this outlook is entirely contingent on the flawless execution of the Sangdong Mine's commissioning—a project hailed as the largest planned tungsten development in the Western world.