NATO's 5% target: Why Almonty Industries' mega mine and NASDAQ listing are a perfect fit for investors
Geopolitical conflicts and trade restrictions are making it increasingly difficult to source critical raw materials. Western companies in the high-tech and defense sectors are particularly struggling with scarce supplies and increasingly stringent export controls. With NATO's new 5% defense spending target, the battle for raw materials such as tungsten, which are essential for defense equipment, is set to gain further momentum. As a result, the demand for independent suppliers and the need for reliable partners with sufficient capacity is growing. Almonty Industries has already established a unique profile as a tungsten producer, with assets ranging from mines in Europe to the upcoming commissioning of a mega deposit in South Korea. The commissioning of the Sangdong mine in South Korea and Almonty's European Operations
Almonty Industries (TSX:AII) is on the verge of starting production at its Sangdong Mine, which is set to go into operation soon. With a tungsten content significantly higher than that of many competitors and a mine life span of over 90 years, the project offers considerable cost advantages and planning security. At the same time, it is the largest tungsten mine outside China. By 2027, the Company aims to supply 43% of global supply outside China, which equates to approximately 7% of global supply.
In addition to the property in South Korea, the Panasqueira mine in Portugal, which is already in operation, continuously supplies tungsten concentrate. The Company also owns two additional tungsten properties in Spain. Development of tungsten production in Sangdong through 2027. (Source: Almonty Industries) The importance of long-term supply contracts for security of supply
In order to meet the demand of reliable end users, Almonty has entered into long-term purchase agreements with the Plansee Group. Another key factor is an exclusive agreement with a US defense company that will purchase at least 40 tons of tungsten oxide per month, which will be used in American defense systems, guaranteeing stable and predictable revenues. In addition, a separate agreement with a South Korean SpaceX supplier secures the purchase of molybdenum, which is also located on the Sangdong property, and complements the portfolio of strategic metals. The minimum price guarantees in these agreements and the open-ended purchase prices allow the Company to plan with certainty. Expansion into the US, personnel changes, and NASDAQ listing
Almonty decided at its Annual General Meeting to relocate its headquarters to the US in order to become the only major tungsten concentrate producer in North America. The US Congressional Committee acknowledged the importance of the Sangdong mine for national security in a letter, which can be seen as a clear sign of confidence. In May, the Company was invited to join the Critical Metals Forum, highlighting Almonty's relevance in this area. Alan Estevez and General Gustave Perna recently joined the Board of Directors. Estevez formerly served as US Assistant Secretary of Commerce for Industry and Security, while Perna most recently commanded the US Army. Both bring extensive expertise in defense logistics and strategic procurement to the Company.
At the same time, Almonty is planning an IPO on the NASDAQ. This step aims to improve liquidity and attract institutional investors, giving them a direct stake in the expected growth.
According to Bloomberg, now is an ideal time to go public, as newly listed companies are currently experiencing the fastest share price increases in years. This year, the shares of three companies more than doubled on their first day of trading.
Several factors could significantly increase the Company's value. The NATO target of 5% of gross domestic product for defense spending by 2035 at the latest will drive demand for tungsten significantly. The commissioning of a state-of-the-art tungsten oxide processing plant in South Korea will increase local value creation and improve margins. The molybdenum deposit offers additional revenue opportunities. A successful NASDAQ listing would raise Almonty's profile and attract institutional investors who are looking to invest in security-related raw materials. Given China's tighter export controls and the US's billion-dollar subsidy programs for critical metals, there is a political tailwind for companies like Almonty. Subsidies and tax incentives for domestic production could further strengthen the competitive position. The automotive industry is working on the further development of its batteries for electric vehicles. Tungsten-containing materials such as niobium tungstate are being tested as anode materials. A breakthrough here could further fuel demand for tungsten. Analyst opinions and price targets
Market observers are optimistic. The latest revaluation by GBC Research is based on higher long-term tungsten price assumptions and an improved cash flow forecast. In addition, the increased price target reflects both the strategic value of the mine and Almonty's growing role in the global supply chain. The price target has been set at CAD 5.50. Sphene Capital sees the price target at CAD 5.40. The current share price is CAD 3.56. Chart of Almonty Industries. (Source: refinitiv.com)
Almonty Industries is on the verge of maturing from a niche producer to a key raw material supplier for Western high-tech and defense industries. With an established mine in Europe, the high-grade Sangdong project, and a strong network of long-term customers, the Company is securing valuable market share. The planned NASDAQ listing promises additional capital inflows and increased visibility. NATO's new 5% defense spending target will further drive up global demand. For investors focused on commodity security and geopolitical stability, Almonty Industries' unique market position could pave the way for an attractive growth phase. Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as 'Relevant Persons') currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a 'Transaction'). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company. In this respect, there is a concrete conflict of interest in the reporting on the companies.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships. For this reason, there is also a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies. Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
This is sponsored content issued on behalf of Apaton Finance GmbH and Almonty Industries, please see full disclaimer here.
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