Almonty Shares Surge on Upgraded Outlook and Production Milestone

Friday witnessed a powerful rally in Almonty Industries' stock, with the tungsten producer's shares advancing more than 8%. This significant uptick was fueled by a substantially improved financial forecast from analysts at B. Riley, signaling a potential turning point for the mining company.

The catalyst for the market's enthusiasm was a decisive move by B. Riley. The investment bank sharply revised its 2025 earnings per share (EPS) estimate, lifting it from a projected loss of $0.30 to a far narrower loss of $0.08. This represents a remarkable improvement exceeding 70%. Even more compelling are the projections for 2027 and 2028, where analysts are now forecasting the company's first profitable years with EPS of $0.58 and $0.91, respectively.

Investors responded immediately to this optimistic reassessment. On German exchanges, the share price climbed to €6.03, marking a single-day gain of 8.65%. This market activity suggests growing confidence in the Canadian miner's strategic direction and future profitability.

Sangdong Mine Nears Production, Bolstering Confidence

The surge in analyst and investor optimism is firmly rooted in a key operational development. Almonty is approaching a historic milestone with its flagship Sangdong project in South Korea. Construction at the mine is reported to be "substantially complete," marking its official transition from the development phase to the production stage.

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

The project's strategic importance is underscored by its scale and timing:
- Upon full operation, Sangdong is poised to become the largest tungsten mine in the Western world.
- It is positioned to meet surging demand from Western governments and defense sector customers.
- Tungsten's status as a critical raw material for both defense and advanced manufacturing sectors adds significant strategic weight to the asset.

Solid Financial Footing Supports Transition

The company's recent quarterly results provide a solid foundation for this renewed confidence. Third-quarter revenue increased by 28% to CAD $8.7 million, driven by a combination of stronger tungsten prices and consistent output from its established Panasqueira Mine in Portugal.

Furthermore, Almonty fortified its balance sheet with a US $90 million capital raise completed in July. This financial reinforcement ensures the company is well-capitalized to navigate the critical final steps toward commercial production at Sangdong.

The central question now is whether Almonty can successfully transition from a company reporting losses to one generating sustained profits. The successful ramp-up of the Sangdong Mine will be the definitive factor in answering that question.