Almonty Industries Enters Production Era with Key Mine Launch

Almonty Industries Inc. has formally transitioned from a developer to a producer, marking a pivotal corporate shift. The commencement of commercial mining operations at its flagship Sangdong tungsten mine in South Korea triggered an approximate 9% surge in the company's NASDAQ-listed shares.

The operational phase began with the first truckload of ore being deposited at the Run-of-Mine (ROM) pad. This material will now undergo primary and secondary crushing, milling, and flotation processes on-site before final preparation and packaging for customer shipment.

Chief Executive Officer Lewis Black characterized this initial ore placement as a strategic turning point, not only for Almonty but for the global tungsten supply chain. The Sangdong project is positioned to be instrumental in reducing the West's heavy reliance on China, which currently accounts for over 80% of the world's tungsten output.

Arif Priyambodo, the General Manager for processing, confirmed the completion of all critical preparatory work. This encompassed geological surveys, ground stabilization, load testing, and full plant installation. The crushing, milling, and flotation circuits are reported to be operating according to plan, supporting a structured ramp-up to full capacity.

Sangdong hosts one of the largest tungsten resources globally. Reserves are estimated at 7.9 million tonnes of ore with an average grade of 0.47% tungsten trioxide (WO₃), equating to 3.7 million metric tonne units of tungsten.

Fortifying Western Supply Chains

Addressing a Critical Mineral Shortfall

Tungsten has been listed as a critical mineral by the U.S. government since 2018, largely due to its essential role in defense applications. China's dominant market share exceeding 80% is viewed as a significant supply chain vulnerability for Western nations.

Upon reaching full production, Sangdong is projected to supply more than 80% of the world's tungsten originating from outside China. This directly addresses supply constraints exacerbated by U.S. procurement bans on Chinese tungsten and China's own export restrictions.

The Integrated "Korean Trinity" Vision

Black further outlined a long-term strategy centered on an integrated "Korean Trinity" model. This framework consists of three core components:
* Tungsten extraction from the Sangdong mine.
* A planned tungsten oxide processing plant.
* Development of an adjacent molybdenum deposit.

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The objective is to establish a continuous, in-country value chain in Korea—from mining and refining to further processing. This integrated system is also intended to support future U.S. defense procurement, which from 2027 must source tungsten from outside China.

Corporate and Financial Updates

Recent Operational and Capital Moves

Alongside the production start, Almonty has significantly strengthened its financial position and expanded its project portfolio through several key initiatives:
* December 10: Closed an upsized, fully placed, and managed equity offering raising $129.375 million, with BofA Securities acting as Lead Bookrunner.
* December 1: Appointed retired U.S. Army Brigadier General Steven L. Allen as Chief Operating Officer. He brings 33 years of military logistics and operational experience to optimize tungsten supply chains.
* November: Acquired the Gentung Browns Lake tungsten project in Montana, a strategic move in its plan to become a leading integrated tungsten producer in the United States.

Substantially Enhanced Liquidity

As of September 30, 2025, the company reported cash and cash equivalents of $111.6 million, a substantial increase from the $7.8 million held at the end of 2024. Third-quarter 2025 revenue rose 28% year-over-year to $8.7 million, driven by higher tungsten prices and consistent production from its Panasqueira mine in Portugal.

Market Perspective and Valuation

Share Performance and Analyst Commentary

Almonty's share price has appreciated considerably over the past year. The company is listed on multiple exchanges, including the NASDAQ (ticker: ALM), the TSX, the ASX (ticker AII on both), and in Frankfurt (ALI1). Following the Sangdong announcement, its market capitalization stands at approximately $2.79 billion.

Recent analyst research includes a December 11 update from Diamond Equity Research, which highlighted Almonty's strategic positioning and growth initiatives. According to TipRanks, the most recent analyst rating is a "Hold" with a price target of C$10.00. On December 19, DA Davidson reaffirmed a "Buy" recommendation.

The Path Forward: Ramp-Up and Expansion

With commercial extraction now underway, the focus turns to stabilizing and gradually increasing production rates at Sangdong. Concurrently, Almonty plans to advance its European and U.S. projects. The company is also evaluating strategic partnerships to solidify its role in securing Western tungsten supply.

The next major milestone is achieving consistently high output levels at Sangdong and optimizing throughput. This will be crucial for meeting the demand from Western government and defense customers seeking long-term, secure tungsten supply agreements.