Latest news with #AlmontyIndustries
The Market Online
2 days ago
- Business
- The Market Online
Defense boom, tungsten shock, Nasdaq listing: Is Almonty the most exciting stock of 2025?
Many investors dream of getting in on a stock at the right time – just before it takes off. Shares in tungsten producer Almonty Industries have already staged a unique rally this year. The revaluation is, therefore, in full swing. But how much further can the stock go? While analysts at Sphene Capital see further upside potential of 100%, events are unfolding rapidly – at Almonty (TSX:AII), an u and around the world. We explain what makes Almonty Industries such an interesting investment story. Almonty supplies tungsten from secure regions – The US is snapping it up Almonty Industries (TSX:AII) is a global tungsten producer that mines high-grade tungsten concentrate from politically stable, conflict-free regions. Almonty currently operates the Panasqueira tungsten mine in Portugal and has other projects in Spain. The flagship Sangdong project in South Korea is scheduled to go into production this summer. This geographical diversification in legally secure regions makes Almonty's offering unique – around 90% of the world's tungsten supply currently comes from China, North Korea or Russia. China has made exports more difficult several times in recent months, and the US National Defense Authorization Act even prohibits the US Department of Defense from purchasing tungsten mined or processed in China or Russia from 2027 onwards. Almonty is, therefore, one of the few remaining suppliers. In this context, the Sangdong project is unique: it is one of the few new large-scale tungsten projects outside China and is being developed in a country considered a close ally of the US. This fits perfectly with the strategy of the United States and other Western countries to build resilient supply chains for critical raw materials. Almonty's collaboration with Washington-based consulting firm ADI, whose team consists of former government and military experts, highlights the political dimension of the project. The fact that Almonty has relocated its headquarters to the US also fits into this picture. Unique conditions – Tungsten already sold with no price cap Almonty currently produces around 900 tons of tungsten per year at its Panasqueira mine in Portugal. Although the mine has been in operation for 136 years, Almonty CEO Lewis Black expects it to remain active for another 20 to 30 years. According to Black, the mine remains solidly profitable thanks to the high quality of the material. The Sangdong project in South Korea will contribute an additional 4,000 tons of tungsten per year starting this summer. However, Almonty has the option to double this production in the short term. Compared to the mine in Portugal, Sangdong offers grades of 0.47% tungsten trioxide. This is still around six times more than the Panasqueira mine, which has been profitable for over a hundred years. The US relies on 10,000 tons of tungsten yearly to meet demand in the defense and high-tech industries. Almonty has already sold more than half of the tungsten production from the Sangdong mine. The buyers are a subsidiary of the Austrian Plansee Group and the US defense supplier Tungsten Parts Wyoming. Almonty considers the terms of these purchase agreements to be very good – they include minimum prices but no price caps. For Almonty and its shareholders, this means planning security and stable cash flows without having to forego positive surprises. Additional potential: Molybdenum lies beneath the tungsten When Lewis Black talks about Sangdong, he primarily highlights the convincing figures despite conservative calculations. The project investment costs amount to around USD 105 million, 70% of which was financed by a loan from the German KfW-IPEX Bank. According to the feasibility study, the project has a net present value (NPV) of around USD 156 million and a pre-tax profitability of approximately 26%. In addition, Sangdong offers long-term upside potential through an underlying molybdenum deposit, which could also be exploited in the future. Own refinery turns Almonty into a high-tech supplier In order to achieve an even greater share of the value chain, Almonty will also enter the tungsten processing business. According to Black, this element is not only challenging to mine but also difficult to process further. Thanks to the many years of experience of the Almonty Industries team, which was already working with tungsten when Western industry had not even noticed its dependence on China, the Company has the necessary expertise. Almonty signed a letter of intent in 2024 to build its own refinery in South Korea by 2027. The Sangdong Downstream Extension Project is expected to have an annual capacity of 4,000 tons of tungsten and produce ammonium paratungstate (APT) and nano-crystalline tungsten oxide. This would mark Almonty's first step from a pure mining operator to a fully integrated tungsten producer. Through this vertical integration, Almonty will achieve significantly greater added value and could also supply highly refined tungsten products – such as powders and alloys – to the South Korean battery and semiconductor industry. Tungsten: Analysts see a 16% supply gap in 2025 Demand for tungsten has been rising steadily for years – analysts at predict an annual increase of 4.6% through 2030. However, since the war in Ukraine, sanctions against Russia, and the consequences of the US National Defense Authorization Act, supply has been very limited. New tungsten projects have been rare for many years – Sangdong is considered an exception. Analysts at The Oregon Group expect a significant supply gap of up to 16% for tungsten in 2025. The commissioning of the Sangdong mine later this year is very timely. Key figures + Nasdaq listing = New momentum? With peace efforts surrounding the war in Ukraine having temporarily collapsed and the signs continuing to point to arms deliveries and rearmament, tungsten will continue to be needed for the defense industry in the near future. However, the unique element with the high melting point is also indispensable in aerospace, modern batteries, and heavy equipment in mining. The stock of Almonty Industries has consolidated at a high level in recent months and has recently been poised to reach new highs. Almonty's key operating figures are looking good. The planned listing on the US Nasdaq stock exchange, set to coincide with the start of operations at the Sangdong mine, should give this unique investment story additional momentum. There are many reasons to believe that Almonty shareholders are in the right place at the right time. 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 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 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 third-party provided content issued on behalf of Almonty Industries Inc., please see full disclaimer here.
The Market Online
22-05-2025
- Business
- The Market Online
Almonty Industries: Expansion across portfolio to drive meaningful revenue & profit growth
(Source: Couloir Capital.) Almonty Industries (TSX:AII) is a tungsten producer in Portugal and soon to be South Korea later this year. The company is also focused on its Valtreixal tin-tungsten and Los Santos tungsten development projects in Spain. Click HERE for the full report. This is third-party provided content issued on behalf of Almonty Industries Inc, please see full disclaimer here.
Globe and Mail
16-05-2025
- Business
- Globe and Mail
Almonty Industries Reports First Quarter 2025 Financial Results
Almonty Industries Inc. ('Almonty' or the 'Company') (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI), a leading global producer of tungsten concentrate, today announced its first quarter 2025 financial results. Financial Summary: Unless otherwise indicated, all figures are expressed in Canadian dollars. Three Months Ended March 31, CAD$ in millions 2025 2024 Revenue $7.91 $7.82 Income from Mining Operations $0.752 $0.606 Operating Expenses $9.5 $4.3 Loss before valuation of warrant liabilities $(8.8) $(3.7) Non-Cash Loss on valuation of warrant liabilities $25.8 $0.1 Net loss for the period $(34.6) $(3.8) Adj. EBITDA (non-IFRS) (1) $(3.5) $(1.3) Key First Quarter 2025 & Subsequent Operational Highlights: Secured binding offtake agreement with a U.S. defense contractor to supply tungsten oxide solely for U.S. defense applications. Obtained shareholder approval for a proposed domestication from Canada to the United States to empower Almonty's long-term competitiveness and support U.S. industry in light of global geopolitical tensions, with 99.6% of votes cast in favor. Advancing final preparations ahead of an expected near-term operations startup at the Company's Sangdong Tungsten Mine in South Korea, where processing equipment has been installed and the final drawdown of the US$75.1 million KfW IPEX-Bank project loan facility has been completed. Secured strategic partnership with American Defense International, a prominent government relations firm, supporting Almonty's position as a leading allied supplier of tungsten to the American defense and technology industries. Engaged international investor relations specialists MZ Group ('MZ') to lead a comprehensive, strategic investor relations and financial communications program across all key markets. First Quarter 2025 Financial Results Revenue recorded in the first quarter of 2025 increased by 1.3% to $7.9 million, as compared to $7.8 million in the same year-ago quarter. The slight increase was largely attributable to higher tungsten concentrate sales, driven by a combination of lower production volumes and improved pricing under long-term supply agreements. Income from mining operations in the first quarter of 2025 increased 24.1% to $0.75 million, as compared to $0.61 million in the same year-ago quarter. The increase was largely attributable to increased production at the Panasqueira mine as well as improved pricing. Operating expenses in the first quarter of 2025 totaled $9.5 million, as compared to $4.3 million in the same year-ago quarter. The change in operating expenses was chiefly due to an increase in non-cash share-based compensation expense, non-cash loss on valuation of embedded derivative liabilities, and an increase in costs associated with the Company's proposed redomiciling. Net loss in the first quarter of 2025 totaled $34.6 million, as compared to $3.8 million in the prior year. The change was primarily attributable to a non-cash loss of $25.8 million from the change in valuation of warrant liabilities, based on a Black-Scholes valuation method reflecting the increase in the Company's stock price from $0.91per share at December 31, 2024 to $2.25 at March 31, 2025. Adjusted EBITDA, a non-IFRS measure, increased 169.2% to $(3.5) million in the first quarter of 2025, as compared to $(1.3) million in the same year-ago quarter Cash and cash equivalents as of March 31, 2025 totaled $16.9 million, as compared to $7.8 million as of December 31, 2024. The change in cash was primarily a result of the receipt of proceeds of $8.7 million in conjunction with an equity placement, receipt of $3.3 million in conjunction with the exercise of warrants, partially offset by strategic investments in mining assets at the Company's Sangdong Project in South Korea. Subsequent to the close of the first quarter, the Company raised $3.6 million in proceeds from the exercise of additional warrants. Management Commentary Almonty President & CEO Lewis Black commented: 'The first quarter was marked by solid execution on multiple fronts. At Panasqueira, we again delivered positive income from mining operations, reaffirming the mine's consistency and the importance of the operating experience derived there as we approach startup at our flagship Sangdong project in South Korea. 'With processing equipment now installed and the final drawdown of the US$75.1 million KfW IPEX-Bank loan completed, Sangdong is effectively construction-complete. We're now entering the final pre-production phase at what is one of the largest, highest-grade tungsten projects outside of China. Given Sangdong's significantly higher ore grade compared to Panasqueira, the production economics are expected to be highly favorable. 'We also reinforced our financial position, ending the quarter with nearly $17 million in cash, thanks to equity inflows and warrant exercises. The reported net loss includes a large non-cash charge of $25.8 million related to the revaluation of warrant liabilities – ironically driven by a sharply higher stock price, which more than doubled during the quarter. While this accounting treatment impacts reported earnings, it is entirely non-cash and is simply the reflection of IFRS accounting rules. 'On the strategic front, we expanded our U.S. presence through a new partnership with American Defense International, supporting our role as a key allied supplier of tungsten. This was further reinforced by the signing of a binding offtake agreement with a U.S. defense contractor to supply tungsten oxide exclusively for use in American defense applications. We also launched a global investor communications program with MZ Group to ensure our value proposition is clearly understood by the capital markets. 'With production at Sangdong on the near-term horizon, we believe Almonty is well positioned to enter a new phase of growth, aligned with rising strategic demand for tungsten in defense and technology applications,' concluded Black. About Almonty Almonty Industries Inc. (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) is a diversified and experienced global producer of tungsten concentrate in conflict-free regions. The Company is currently mining, processing and shipping tungsten concentrate from its Panasqueira mine in Portugal. Its Sangdong tungsten mine in Gangwon Province, South Korea is currently under construction. The Sangdong mine was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, and has significant upside potential from an underlying molybdenum deposit. Additional development projects underway include the Valtreixal tin/tungsten project in northwestern Spain and Los Santos Mine in western Spain. Further information about Almonty's activities may be found at and under Almonty's profile at Legal Notice The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions. Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release. (1) Use of Non-GAAP Financial Measures This press release makes reference to certain non-GAAP financial measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS financial measures by providing further understanding of Almonty's results of operations from management's perspective. Almonty's definitions of non-GAAP measures used in this press release may not be the same as the definitions for such measures used by other companies in their reporting. Non-GAAP measures have (1)limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of Almonty's financial information reported under IFRS. Almonty uses non-GAAP financial measures, including 'EBITDA', to provide investors with supplemental measures of its operating performance and to eliminate items that have less bearing on operating performance or operating conditions, and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Almonty defines 'EBITDA from mining operations' as gross revenue less mine production costs. Almonty believes that securities analysts, investors and other interested parties frequently use non-GAAP financial measures in the evaluation of issuers. Almonty's management also uses non-GAAP financial measures in order to facilitate operating performance comparisons from period to period. (in thousands of Canadian Dollars) Three Months Ended March 31, 2025 2024 Net loss for the period (34,622) (3,782) Depreciation & amortization 288 290 Loss on valuation of embedded derivative liabilities 2,909 81 Loss on valuation of warrant liabilities 25,810 109 Foreign exchange loss 1,100 903 Taxes 92 5 Interest, net 55 732 Stock-based compensation 834 392 Adjusted EBITDA (Non-IFRS) (3,534) (1,270) Disclaimer for Forward-Looking Information When used in this press release, the words 'estimate', 'project', 'belief', 'anticipate', 'intend', 'expect', 'plan', 'predict', 'may' or 'should' and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. These statements and information are based on management's beliefs, estimates and opinions on the date that statements are made and reflect Almonty's current expectations. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Almonty to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: any specific risks relating to fluctuations in the price of ammonium para tungstate ('APT') from which the sale price of Almonty's tungsten concentrate is derived, actual results of mining and exploration activities, environmental, economic and political risks of the jurisdictions in which Almonty's operations are located and changes in project parameters as plans continue to be refined, forecasts and assessments relating to Almonty's business, credit and liquidity risks, hedging risk, competition in the mining industry, risks related to the market price of Almonty's shares, the ability of Almonty to retain key management employees or procure the services of skilled and experienced personnel, risks related to claims and legal proceedings against Almonty and any of its operating mines, risks relating to unknown defects and impairments, risks related to the adequacy of internal control over financial reporting, risks related to governmental regulations, including environmental regulations, risks related to international operations of Almonty, risks relating to exploration, development and operations at Almonty's tungsten mines, the ability of Almonty to obtain and maintain necessary permits, the ability of Almonty to comply with applicable laws, regulations and permitting requirements, lack of suitable infrastructure and employees to support Almonty's mining operations, uncertainty in the accuracy of mineral reserves and mineral resources estimates, production estimates from Almonty's mining operations, inability to replace and expand mineral reserves, uncertainties related to title and indigenous rights with respect to mineral properties owned directly or indirectly by Almonty, the ability of Almonty to obtain adequate financing, the ability of Almonty to complete permitting, construction, development and expansion, challenges related to global financial conditions, risks related to future sales or issuance of equity securities, differences in the interpretation or application of tax laws and regulations or accounting policies and rules and acceptance of the TSX of the listing of Almonty shares on the TSX. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to, no material adverse change in the market price of ammonium para tungstate (APT), the continuing ability to fund or obtain funding for outstanding commitments, expectations regarding the resolution of legal and tax matters, no negative change to applicable laws, the ability to secure local contractors, employees and assistance as and when required and on reasonable terms, and such other assumptions and factors as are set out herein. Although Almonty has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Almonty. Accordingly, readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary. Investors are cautioned against attributing undue certainty to forward-looking statements. Almonty cautions that the foregoing list of material factors is not exhaustive. When relying on Almonty's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Almonty has also assumed that material factors will not cause any forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release represents the expectations of Almonty as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Almonty may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.
National Post
16-05-2025
- Business
- National Post
Almonty Industries Reports First Quarter 2025 Financial Results
Article content TORONTO — Almonty Industries Inc. ('Almonty' or the 'Company') (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI), a leading global producer of tungsten concentrate, today announced its first quarter 2025 financial results. Article content Article content Key First Quarter 2025 & Subsequent Operational Highlights: Article content Secured binding offtake agreement with a U.S. defense contractor to supply tungsten oxide solely for U.S. defense applications. Obtained shareholder approval for a proposed domestication from Canada to the United States to empower Almonty's long-term competitiveness and support U.S. industry in light of global geopolitical tensions, with 99.6% of votes cast in favor. Advancing final preparations ahead of an expected near-term operations startup at the Company's Sangdong Tungsten Mine in South Korea, where processing equipment has been installed and the final drawdown of the US$75.1 million KfW IPEX-Bank project loan facility has been completed. Secured strategic partnership with American Defense International, a prominent government relations firm, supporting Almonty's position as a leading allied supplier of tungsten to the American defense and technology industries. Engaged international investor relations specialists MZ Group ('MZ') to lead a comprehensive, strategic investor relations and financial communications program across all key markets. Article content Revenue recorded in the first quarter of 2025 increased by 1.3% to $7.9 million, as compared to $7.8 million in the same year-ago quarter. The slight increase was largely attributable to higher tungsten concentrate sales, driven by a combination of lower production volumes and improved pricing under long-term supply agreements. Article content Income from mining operations in the first quarter of 2025 increased 24.1% to $0.75 million, as compared to $0.61 million in the same year-ago quarter. The increase was largely attributable to increased production at the Panasqueira mine as well as improved pricing. Article content Operating expenses in the first quarter of 2025 totaled $9.5 million, as compared to $4.3 million in the same year-ago quarter. The change in operating expenses was chiefly due to an increase in non-cash share-based compensation expense, non-cash loss on valuation of embedded derivative liabilities, and an increase in costs associated with the Company's proposed redomiciling. Article content Net loss in the first quarter of 2025 totaled $34.6 million, as compared to $3.8 million in the prior year. The change was primarily attributable to a non-cash loss of $25.8 million from the change in valuation of warrant liabilities, based on a Black-Scholes valuation method reflecting the increase in the Company's stock price from $0.91per share at December 31, 2024 to $2.25 at March 31, 2025. Article content Adjusted EBITDA, a non-IFRS measure, increased 169.2% to $(3.5) million in the first quarter of 2025, as compared to $(1.3) million in the same year-ago quarter Article content Cash and cash equivalents as of March 31, 2025 totaled $16.9 million, as compared to $7.8 million as of December 31, 2024. The change in cash was primarily a result of the receipt of proceeds of $8.7 million in conjunction with an equity placement, receipt of $3.3 million in conjunction with the exercise of warrants, partially offset by strategic investments in mining assets at the Company's Sangdong Project in South Korea. Subsequent to the close of the first quarter, the Company raised $3.6 million in proceeds from the exercise of additional warrants. Article content Almonty President & CEO Lewis Black commented: 'The first quarter was marked by solid execution on multiple fronts. At Panasqueira, we again delivered positive income from mining operations, reaffirming the mine's consistency and the importance of the operating experience derived there as we approach startup at our flagship Sangdong project in South Korea. Article content 'With processing equipment now installed and the final drawdown of the US$75.1 million KfW IPEX-Bank loan completed, Sangdong is effectively construction-complete. We're now entering the final pre-production phase at what is one of the largest, highest-grade tungsten projects outside of China. Given Sangdong's significantly higher ore grade compared to Panasqueira, the production economics are expected to be highly favorable. Article content 'We also reinforced our financial position, ending the quarter with nearly $17 million in cash, thanks to equity inflows and warrant exercises. The reported net loss includes a large non-cash charge of $25.8 million related to the revaluation of warrant liabilities – ironically driven by a sharply higher stock price, which more than doubled during the quarter. While this accounting treatment impacts reported earnings, it is entirely non-cash and is simply the reflection of IFRS accounting rules. Article content 'On the strategic front, we expanded our U.S. presence through a new partnership with American Defense International, supporting our role as a key allied supplier of tungsten. This was further reinforced by the signing of a binding offtake agreement with a U.S. defense contractor to supply tungsten oxide exclusively for use in American defense applications. We also launched a global investor communications program with MZ Group to ensure our value proposition is clearly understood by the capital markets. Article content 'With production at Sangdong on the near-term horizon, we believe Almonty is well positioned to enter a new phase of growth, aligned with rising strategic demand for tungsten in defense and technology applications,' concluded Black. Article content Almonty Industries Inc. (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) is a diversified and experienced global producer of tungsten concentrate in conflict-free regions. The Company is currently mining, processing and shipping tungsten concentrate from its Panasqueira mine in Portugal. Its Sangdong tungsten mine in Gangwon Province, South Korea is currently under construction. The Sangdong mine was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, and has significant upside potential from an underlying molybdenum deposit. Article content Additional development projects underway include the Valtreixal tin/tungsten project in northwestern Spain and Los Santos Mine in western Spain. Further information about Almonty's activities may be found at and under Almonty's profile at Article content The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions. Article content Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release. Article content This press release makes reference to certain non-GAAP financial measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS financial measures by providing further understanding of Almonty's results of operations from management's perspective. Almonty's definitions of non-GAAP measures used in this press release may not be the same as the definitions for such measures used by other companies in their reporting. Non-GAAP measures have (1)limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of Almonty's financial information reported under IFRS. Almonty uses non-GAAP financial measures, including 'EBITDA', to provide investors with supplemental measures of its operating performance and to eliminate items that have less bearing on operating performance or operating conditions, and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Almonty defines 'EBITDA from mining operations' as gross revenue less mine production costs. Article content Almonty believes that securities analysts, investors and other interested parties frequently use non-GAAP financial measures in the evaluation of issuers. Almonty's management also uses non-GAAP financial measures in order to facilitate operating performance comparisons from period to period. Article content When used in this press release, the words 'estimate', 'project', 'belief', 'anticipate', 'intend', 'expect', 'plan', 'predict', 'may' or 'should' and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. These statements and information are based on management's beliefs, estimates and opinions on the date that statements are made and reflect Almonty's current expectations. Article content Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Almonty to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: any specific risks relating to fluctuations in the price of ammonium para tungstate ('APT') from which the sale price of Almonty's tungsten concentrate is derived, actual results of mining and exploration activities, environmental, economic and political risks of the jurisdictions in which Almonty's operations are located and changes in project parameters as plans continue to be refined, forecasts and assessments relating to Almonty's business, credit and liquidity risks, hedging risk, competition in the mining industry, risks related to the market price of Almonty's shares, the ability of Almonty to retain key management employees or procure the services of skilled and experienced personnel, risks related to claims and legal proceedings against Almonty and any of its operating mines, risks relating to unknown defects and impairments, risks related to the adequacy of internal control over financial reporting, risks related to governmental regulations, including environmental regulations, risks related to international operations of Almonty, risks relating to exploration, development and operations at Almonty's tungsten mines, the ability of Almonty to obtain and maintain necessary permits, the ability of Almonty to comply with applicable laws, regulations and permitting requirements, lack of suitable infrastructure and employees to support Almonty's mining operations, uncertainty in the accuracy of mineral reserves and mineral resources estimates, production estimates from Almonty's mining operations, inability to replace and expand mineral reserves, uncertainties related to title and indigenous rights with respect to mineral properties owned directly or indirectly by Almonty, the ability of Almonty to obtain adequate financing, the ability of Almonty to complete permitting, construction, development and expansion, challenges related to global financial conditions, risks related to future sales or issuance of equity securities, differences in the interpretation or application of tax laws and regulations or accounting policies and rules and acceptance of the TSX of the listing of Almonty shares on the TSX. Article content Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to, no material adverse change in the market price of ammonium para tungstate (APT), the continuing ability to fund or obtain funding for outstanding commitments, expectations regarding the resolution of legal and tax matters, no negative change to applicable laws, the ability to secure local contractors, employees and assistance as and when required and on reasonable terms, and such other assumptions and factors as are set out herein. Although Almonty has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Almonty. Accordingly, readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary. Article content Investors are cautioned against attributing undue certainty to forward-looking statements. Almonty cautions that the foregoing list of material factors is not exhaustive. When relying on Almonty's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Article content Almonty has also assumed that material factors will not cause any forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. Article content The forward-looking information contained in this press release represents the expectations of Almonty as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Almonty may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws. Article content Article content Article content Article content Contacts Article content Company Contact: Lewis Black Chairman, President and CEO (647) 438-9766 info@ Article content Article content Article content
The Market Online
13-05-2025
- Business
- The Market Online
When returns meet security: Why Almonty Industries is suddenly everyone's darling!
In 2025, the world looks at a map full of conflicts: tensions are escalating in Ukraine, the Middle East, and along new geopolitical fault lines in Asia and Africa. Hopes for peace are giving way to a reality of rearmament and militarization. This dynamic is fueling the defense industry. But its boom depends on an inconspicuous metal: tungsten. With its unique heat resistance and density, it is irreplaceable for armor-piercing ammunition, missiles, and high-performance alloys. While China dominates the global market, a Canadian company is stepping into the spotlight: Almonty Industries (TSX:AII). With the revival of the legendary Sangdong mine in South Korea and strategic partnerships, Almonty could become a key player for the West. Tungsten: The invisible backbone of security Tungsten is not a headline-grabbing commodity, but without it, nothing works. Its melting point of 3,422 degrees Celsius makes it the hardest metal on earth and indispensable in defense technology. Industry experts agree that without tungsten, there would be no hard steel for armor or high-impact ammunition. The problem is that over 80 per cent of global production is controlled by China. Since Beijing drastically cut exports in February 2025, NATO countries have been desperately searching for alternatives. According to estimates, Western reserves will only last for a few months – a nightmare for defense companies that want to ramp up production due to the boom. Almonty Industries: From underdog to strategic partner This is where Almonty Industries (TSX:AII) comes into play. The Company, which previously operated mines in Portugal and Spain, is positioning itself as a bridgehead for Western raw material security. The game changer is the Sangdong mine in South Korea. A historic mine dating back to the 1950s, which once supplied 30 per cent of the world's tungsten. After more than three decades of inactivity, Almonty will start production here in the second quarter of 2025. The figures are impressive. The property offers 7.89 million tons of ore reserves, a life span of 90 years, and has the potential to cover more than 40 per cent of non-Chinese production. Lyndsay Malchuk interviews capital markets expert Christopher Ecclestone on tungsten and Almonty Another deal that changes everything On May 7, Almonty signed an agreement underscoring the Company's strategic importance. Tungsten Parts Wyoming, a US defense contractor, has committed to purchasing at least 40 tons of tungsten oxide per month, which will be used exclusively for US defense applications such as missiles and drones. The highlight of the deal is a guaranteed minimum price combined with unlimited upside potential as global market prices rise. ' This binding purchase agreement represents a significant milestone for Almonty, as it secures both predictable revenue through a fixed minimum price and long-term demand directly linked to US defense programs ,' said CEO Lewis Black. The deal is not an isolated case. The Austrian Plansee Group secured long-term supplies back in 2020. At the end of January, it was announced that South Korean steel giant SeAH M&S would purchase all molybdenum from Sangdong, which is also located on the property. The 'Americanization' of a Canadian company Parallel to its operational expansion, Almonty is undergoing a structural change. At the most recent annual general meeting, a majority of shareholders voted in favor of relocating the headquarters to Delaware. This brings the Company closer to the US military complex. This is in line with the announcement on March 18 that the Company has entered into a strategic partnership with American Defense International, which has important networks in the US. The strategy is complemented by the planned listing on the NASDAQ, which is intended to attract new investor groups. The appointment of retired General Gustave F. Perna to the board was a symbolic coup. The former head of logistics for the US Army brings contacts in the Pentagon and knows how to make supply chains crisis-proof. Analysts: From niche player to mainstream player The financial world is beginning to recognize the potential. Peter Thilo Hasler of Sphene Capital sees the Company generating revenue of CAD 483.4 million and EBIT of CAD 198.8 million by 2027. His price target is CAD 5.40. GBC Research is more cautious at CAD 4.20, but points to the unique geopolitical leverage. Also in April, B. Riley Securities issued a 'Buy' recommendation with a target price of CAD 5.00. This puts the stock's potential between 70 and 120 per cent. Lyndsay Malchuk in an interview with GBC analyst Matthias Greiffenberger But it is about more than just numbers. Almonty embodies a paradigm shift. Countries are suddenly prioritizing security of supply over cost efficiency. This plays into the Company's hands. Demand already exceeds supply, and Almonty is one of the few players outside China that can scale up. Nevertheless, it is not possible to meet all the demand. Lewis Black said in an interview with FAZ: ' I realize that I have to tell many interested parties that I unfortunately cannot supply them immediately .' In a world that is moving toward division rather than globalization, tungsten is becoming a test case for Western resilience. Almonty Industries has set the course to fill this gap with the Sangdong mine, strategic alliances, and US domestication. Whether the mine will become the key to the West's tungsten supply also depends on the broader geopolitical climate. But one thing is clear: When security takes precedence over returns, companies like Almonty are no longer just commodity stocks – they become insurance policies against the unpredictability of the 21st century. 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 this reason, there is also a concrete conflict of interest. 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