Almonty Industries Secures Major Funding, Shifts Focus to Mine Operations

Almonty Industries has successfully closed a substantial financing package totaling $129.4 million, declaring itself fully funded for its project pipeline. This milestone coincides with the ongoing commissioning and ramp-up of its flagship Sangdong mine in South Korea, signaling a pivotal shift in investor focus from financing risk to operational execution. The market is now assessing the impact of the significant share dilution resulting from this capital raise.

On Wednesday, Almonty Industries announced the completion of a significantly upsized, bought-deal equity placement, raising gross proceeds of $129.4 million. The company issued 20.7 million new common shares at a price of $6.25 per share, which included the full exercise of the over-allotment option.

The offering was finalized above its initially targeted volume. According to the company, this outcome was driven by robust demand from institutional investors, indicating confidence in Almonty's long-term prospects despite the near-term dilutive effect of the new shares.

Key Terms of the Equity Offering:

• Gross Proceeds: $129.4 million (approximately 180 million CAD)
• Issue Price: $6.25 per share
• Number of Shares: 20.7 million new common shares
• Lead Underwriter: BofA Securities, with support from Cantor Fitzgerald and other banks

Currently trading on the TSX around 9.41 CAD, the share price sits above the currency-adjusted placement price. This suggests the market had largely anticipated the dilution prior to the deal's closure, with the capital raise effectively establishing a new defined price level.

Operational Timeline: Sangdong Mine Ramp-Up Accelerates

The company has provided clarity on the schedule for its Sangdong tungsten mine in South Korea, countering earlier market speculation about potential delays stretching to 2026.

In its Q3 report, released in early November, and recent updates, management has emphasized:

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

• Construction Progress: Largely complete.
• Current Phase: Commissioning and operational ramp-up.
• Production Target: Commencement is planned for the second half of 2025.

Almonty explicitly denies any project shift beyond 2026. Recent confusion likely stemmed from the separate timeline for its new U.S. project, which targets a later production start.

Allocation of Capital Across Global Projects

With the newly secured capital, Almonty states it is now "fully capitalized" to advance its project pipeline without requiring further equity raises under its current base shelf prospectus.

The proceeds are allocated across three key areas:

1. Gentung Browns Lake (USA): Funding will support exploration and development of this recently acquired project, with production targeted to begin in the second half of 2026.
2. Panasqueira (Portugal): Capital is earmarked for expanding the existing mine to the next level (Level 4).
3. Sangdong (South Korea): Funds will facilitate the completion of the ramp-up phase and the stabilization of production.

This strategic allocation addresses both growth initiatives and the final stage of its most significant near-term driver, the Sangdong mine.

Investor Sentiment and the Path Forward

The successful equity placement removes the typical financing overhang that often weighs on mining equities during construction and start-up phases. The participation of major U.S. investors, led by BofA Securities, further highlights Almonty's strategic position as a non-Chinese supplier of tungsten.

Current market assessment centers on three main points:

• Financing Risk: Materially reduced for the foreseeable future.
• Share Dilution: Noticeable due to the 20.7 million new shares, but largely anticipated by the market in advance.
• Operational Risk: Now the primary focus, shifting to execution at Sangdong (near-term) and Gentung Browns Lake (medium-term).

Consequently, the investment narrative for Almonty is transitioning from questions of funding to the pace at which it can deliver tungsten concentrate. Heading into 2026, the company is positioned with a funded project portfolio, an active ramp-up in Korea, and clearly timed expansion plans in the United States and Portugal.