Almonty Industries – NASDAQ listing, Pentagon, world-class mine, critical raw materials: ride the perfect wave

The Market Online

2 days ago

Tungsten – hard, heat-resistant, indispensable for rockets, semiconductors, and high-tech tools. However, the global supply chain for this critical metal is on the verge of collapse. China's export restrictions have choked the market, and Western stockpiles are depleting rapidly. In this volatile situation, one company is increasingly stepping into the spotlight: Almonty Industries. With the imminent commissioning of the world's largest tungsten mine outside of China and its unique vertical integration, the Canadian company is no longer just a mine operator – it is becoming the architect of Western raw material security. Here is why investors should take a closer look. Geopolitical earthquake: China's grip on critical raw materials
The West's dependence on Chinese raw materials is becoming a strategic Achilles' heel. Since 2023, Beijing has been systematically tightening exports of key metals – most recently tungsten. The justification: 'national security' and 'dual-use' risks, mirroring the arguments often made by the West. The impact is devastating. Experts such as Martin Hotwagner from Steel & Metals Market Research warn that supplies in Europe and the US are rapidly running out. Every vehicle contains up to 300 grams of tungsten, most of which is irretrievably lost once it reaches the end of its life cycle. The consequences can already be seen: a dramatic price increase of over 25% for ammonium paratungstate (APT) since February 2025. In the midst of this crisis, the West is desperately searching for resilient alternatives – and Almonty Industries (TSX:AII), long a niche player, is suddenly emerging as a beacon of hope. Sangdong: The game changer on the verge of take-off
At the heart of Almonty's rise is the Sangdong mine in South Korea. After almost a decade of development, the project is nearing operational launch. Sangdong is no ordinary mine. It is one of the world's largest and highest-grade tungsten deposits, with ore grades three times higher than the market average. Over 90 years of proven reserves offer unparalleled long-term prospects. But Almonty is thinking further ahead. In parallel with the first production phase, Phase 2 and its own tungsten smelter are already in preparation. There are also plans for a tungsten oxide production plant. This vertical integration makes Almonty the only fully integrated tungsten producer in a transparent legal system anywhere in the world. In doing so, the Company has effectively created a monopoly, which is a fundamental value driver in a billion-dollar market. Tungsten visible in the mine. (Source: Almonty Industries) Financial resilience: No blind gamble
Other mining projects fail due to financing difficulties or price fluctuations. Almonty has deliberately established protective mechanisms: Offtake agreements with a safety net : Long-term purchase agreements with fixed minimum prices protect against slumps. At the same time, the Company benefits if tungsten prices continue to rise. A new addition is an exclusive agreement with US defense contractor Tungsten Parts Wyoming (TPW) and Israeli processor Metal-Tech. TPW has secured at least 40 tons of tungsten oxide per month, which is intended exclusively for US defense applications such as missiles and drones. The minimum prices ensure predictable revenues with unlimited upside potential.
: Long-term purchase agreements with fixed minimum prices protect against slumps. At the same time, the Company benefits if tungsten prices continue to rise. A new addition is an exclusive agreement with US defense contractor Tungsten Parts Wyoming (TPW) and Israeli processor Metal-Tech. TPW has secured at least 40 tons of tungsten oxide per month, which is intended exclusively for US defense applications such as missiles and drones. The minimum prices ensure predictable revenues with unlimited upside potential. Favorable capital : The project financing of USD 75.1 million was provided by KfW IPEX-Bank, which had confidence in the project and the management team. This secured low interest rates.
: The project financing of USD 75.1 million was provided by KfW IPEX-Bank, which had confidence in the project and the management team. This secured low interest rates. Strategic flexibility: Over 50% of Korean production is not tied to long-term contracts. The purchase agreements for tungsten production in Portugal also only run until the end of the year. This agility allows the Company to make the most of market opportunities.
US anchor: More than just a move
Almonty's relocation of its headquarters from Canada to the US is not a bureaucratic act. It is a strategic commitment. 99.6% of shareholders voted in favor. The goal is to position Almonty as a reliable supplier and trusted partner in the field of critical raw materials. Recognition came promptly. A formal letter from the influential US Congressional Committee on Strategic Competition with China underscored Almonty's strategic importance to the US. The committee highlighted:
• Sangdong will become the largest tungsten producer outside China.
• Almonty will become the only US-based company with commercial tungsten production.
The committee signaled its interest in cooperation, including inclusion in the national defense reserve. This political backing is worth its weight in gold. It paves the way for a NASDAQ listing, which should attract institutional investors and increase liquidity. Team of experts: A Door opener in Washington
The appointment of Alan Estevez, former Under Secretary of Commerce for Industry and Security, to the Board of Directors highlights the Company's ambitions. Estevez is no mere figurehead. He is considered an expert in national security, defense logistics, and strategic trade. ' Alan's firsthand experience in procurement, contracting, and supply chain will be particularly important as we expand our position as a key allied supplier of tungsten ,' said Black.
Also joining the board of directors in March was General Gustave F. Perna, who has expertise in global logistics and supply chain strategies and an extensive military network.
This is complemented by a membership in the Critical Minerals Forum (CMF), a think tank funded by the US Defense Advanced Research Projects Agency (DARPA). Access to AI-powered forecasting models for commodity demand and prices gives Almonty a strategic information advantage. Molybdenum: The silent wild card
While the Sangdong tungsten deposit is in the spotlight, another asset is waiting in the wings. The high-grade molybdenum deposit is also located on the Sangdong property. It is fully approved and benefits from the infrastructure already in place for the tungsten project. This offers additional upside potential in another critical metal, and here, too, there is a purchase agreement with SeAH Group, a SpaceX supplier, guaranteeing USD 19 per pound.
A NASDAQ listing is planned for the future. GBC Research recently raised its price target for the share to CAD 5.50, citing expectations of higher tungsten prices. Previously, Sphene Capital had already issued a price target of CAD 5.40. The share is currently trading at CAD 3.23. The chart of Almonty Industries, as of June 10. (Source: Refinitiv)
Almonty Industries is no longer a pure mining company. It is transforming into a vertically integrated, systemically important supplier to the West in the midst of a unique geopolitical situation. The one-of-a-kind combination of the world-class Sangdong mine, which is about to begin production, a robust financial structure with price guarantees, political backing from the US, and a planned NASDAQ listing creates an unparalleled investment profile. The extreme market shortage and rising prices have come at the perfect time. In addition, there are expansion opportunities, such as the tungsten smelter, the oxide plant, and the molybdenum deposit. For investors focused on critical raw materials and strategic value creation, Almonty offers a compelling long-term growth story. The foundations have been laid, and production in Sangdong is about to begin. Conflict of interest
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