Almonty Industries Reaches Production Milestone at Key Tungsten Mine

Almonty Industries Inc. has officially transitioned from developer to producer, marking a pivotal corporate achievement. Commercial mining operations have now commenced at its flagship Sangdong tungsten mine in South Korea, a development that spurred a significant share price increase upon the announcement.

The critical shift was signaled on December 16 with the first truck delivery of ore to the Run-of-Mine (ROM) pad at the Yeongwol, Gangwon Province site. This event concludes the major construction phase, setting the stage for full-scale production.

Material extracted via blasting is now being stockpiled on the ROM pad based on ore grade. It will subsequently undergo a multi-stage processing circuit involving primary and secondary crushing, milling, and flotation. This flotation cycle separates, concentrates, dries, and packages the tungsten-bearing minerals for industrial customers.

Chief Executive Lewis Black characterized this initial ore placement as a "strategic inflection point" for the company's goal of strengthening the global tungsten supply chain. He emphasized Sangdong's central role in initiatives by the United States, the European Union, and South Korea to reduce reliance on China, which currently supplies over 80% of the world's tungsten.

Market and Analyst Response

Investors responded positively to the operational progress. On December 24, Almonty's shares on the NASDAQ climbed 6.9% to $9.45, with trading volume reaching approximately 1.27 million shares. This price level sits notably above the stock's 50-day moving average of $7.14.

Institutional and Research Sentiment

Several institutional investors established new positions in the third quarter of 2025, highlighting growing confidence in the South Korean project:
* Telemark Asset Management LLC: ~$7.84 million
* Alyeska Investment Group L.P.: ~$7.84 million
* ArrowMark Colorado Holdings LLC: ~$7.81 million
* Millennium Management LLC: ~$5.95 million
* Sei Investments Co.: ~$2.56 million

Equity researchers have maintained favorable ratings:
* DA Davidson reaffirmed a "Buy" recommendation on December 19 with a $12.00 price target, implying roughly 27% upside from recent levels.
* Oppenheimer rates the shares "Outperform," also with a $12.00 target, raised from $7.00 in October.

The consensus rating, according to MarketBeat data, stands at "Moderate Buy" with an average price target of $10.17.

Mine Potential and Geopolitical Context

The Sangdong deposit holds reserves of 7.9 million tonnes with an average grade of 0.47% tungsten trioxide (WO₃), equating to approximately 3.7 million contained metric tonne units. At full capacity, the mine is projected to supply more than 80% of the world's tungsten produced outside of China.

This output addresses recognized supply vulnerabilities for the strategic metal, especially following recent U.S. defense procurement bans on Chinese tungsten and export restrictions imposed by China. Tungsten has been listed as a critical mineral in the U.S. since 2018 due to its essential applications in defense systems, semiconductors, AI hardware, aerospace, and other high-tech sectors.

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

The "Korean Trinity" Vision

CEO Black outlined a long-term, fully integrated strategy for the site dubbed the "Korean Trinity." This model combines:
1. Ongoing mine production.
2. The construction of an on-site tungsten oxide plant.
3. The planned development of the mine's molybdenum deposit.

The objectives are to establish South Korea as a global hub for tungsten production, refining, and processing; to support U.S. defense programs that will be prohibited from using Chinese tungsten starting in 2027; and to reduce South Korea's heavy dependence on Chinese tungsten oxide imports.

Corporate Developments and Financial Profile

Alongside operational milestones, Almonty has executed several strategic corporate actions in recent months.

Completed Financing: On December 10, the company closed an upsized, fully underwritten public offering of 20.7 million shares at $6.25 per share, generating gross proceeds of $129.375 million. The syndicate was led by BofA Securities, with Cantor Fitzgerald & Co., D.A. Davidson & Co., and A.G.P./Alliance Global Partners as joint bookrunners. Black stated that Almonty is now "fully funded" to advance project exploration and expansion, with no current plans for further capital raises.

Management Strengthening: Effective December 1, retired Brigadier General Steven L. Allen was appointed Chief Operating Officer. He will focus on optimizing tungsten supply flows from both Sangdong and the Panasqueira mine in Portugal.

U.S. Expansion: In November 2025, Almonty completed the acquisition of the Gentung Browns Lake tungsten project in Montana, advancing its strategy to become a leading integrated tungsten producer in the United States.

Almonty currently carries a market capitalization of approximately $2.41 billion. Key financial metrics include a debt-to-equity ratio of 16.37, a current ratio of 0.77, and a quick ratio of 0.63. The elevated debt level reflects the capital-intensive development of Sangdong, a structure expected to improve with incoming cash flow from production.

Path Forward and Upcoming Catalysts

Following stability and performance checks of individual process steps, the focus shifts to production stabilization and the transition to regular full-scale operations.

Key near-term catalysts for the company include:
* Ramping up and stabilizing production at Sangdong.
* Commissioning of the crushing, milling, and flotation circuits.
* Progress on construction of the tungsten oxide plant.
* Results from the Sangdong molybdenum project drill program initiated in September 2025.
* Project updates from the Gentung Browns Lake property in Montana.
* Fourth-quarter 2025 financial results.

Conclusion

The first ore delivery from Sangdong represents a decisive move out of the construction phase for Almonty Industries, reducing project execution risk. It establishes a foundation to capitalize on defense, semiconductor, and high-tech industry demand for non-Chinese tungsten. Bolstered by a strengthened balance sheet, growing institutional interest, and broadly positive analyst coverage, the company's immediate focus is now squarely on successfully ramping up production to full capacity by early 2026.