Original-Research: Almonty Industries Inc.

Original-Research: Almonty Industries Inc. - from Sphene Capital GmbH

03.02.2025 / 15:15 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of Sphene Capital GmbH to Almonty Industries Inc.

     Company Name:                Almonty Industries Inc.
     ISIN:                        CA0203981034

     Reason for the research:     Update Report
     Recommendation:              Buy
     from:                        03.02.2025
     Target price:                CAD 5.20 (previously CAD 3.21)
     Target price on sight of:    36 months
     Last rating change:          -
     Analyst:                     Peter Thilo Hasler, CEFA

Molybdenum gains strategic importance for Almonty

As outlined in our previous updates, the underlying molybdenum deposit at
Sangdong was not factored into our valuation and was considered a potential
upside. This upside has now materialized through an exclusive offtake
agreement with SeAH Group for the full molybdenum production from Almonty's
Sangdong Molybdenum Project, developed by Almonty's Korea Moly (AKMC)
subsidiary. With this agreement, Almonty becomes a leading supplier of two
valuable minerals-tungsten and molybdenum-warranting a revaluation of the
stock. The secured offtake agreement ensures a stable revenue stream, that
is now included into our two-stage Discounted Cash Flow (DCF) model. Our
model incorporates both current and future producing assets-Sangdong
(tungsten and molybdenum), Panasqueira, and Los Santos-along with the
discounted value of the Valtreixal development project. As a result, we
significantly raise our target price from CAD 3.21 per share to CAD 5.20.
Given an expected share price performance of 344.5%, we reaffirm our Buy
rating for Almonty shares.

With a production volume of 2.2 mn tons in 2023, SeAH Holdings is one of
South Korea's leading steel producers. As a holding company, it oversees
SeAH's subsidiaries and manages its investment asset portfolios. One of
these subsidiaries, SeAH M&S, operates the only molybdenum roasting facility
in Asia outside China and owns the world's second-largest molybdenum oxide
smelter. SeAH M&S's primary product is ferro-molybdenum alloy, a rare metal
essential for various applications (for example specialty steels and
semiconductors).

The Sangdong Molybdenum Project has secured all necessary permits for mining
and environmental operations. Production is set to begin by the end of
2026e, with the mine expected to remain operational for up to 60 years. At
full capacity, it is projected to produce 5,600 tonnes of molybdenum
annually, according to the company.

The offtake agreement includes a hard floor price of USD 19 per pound of
molybdenum, which is below current market price of USD 29.40 per pound.
According to the company, the floor price provides a stable basis for
financial planning, while the offtake agreement in our view enables Almonty
to access low-interest domestic bank debt.



You can download the research here: http://www.more-ir.de/d/31707.pdf

Contact for questions:
Peter Thilo Hasler, CEFA
+49 (152) 31764553
peter-thilo.hasler@sphene-capital.de

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2080107 03.02.2025 CET/CEST