Latest news with #AlmontyIndustriesInc.
The Market Online
3 days ago
- Business
- The Market Online
New Analyst Report Lifts Almonty Target Price to CDN$5.50
Almonty Industries Inc.—a tungsten play that's gone from obscure critical minerals junior to one of the most closely watched names in the Western supply chain realignment. Fresh off shareholder approval to redomicile to the U.S., Almonty is charging toward production at its flagship Sangdong Mine in South Korea, a site set to become the largest tungsten operation outside China. A fresh offtake deal with a US defense contractor has locked in exclusive supply for missiles, drones, and other strategic applications, adding real weight to Almonty's 'critical mineral' status. APT prices have jumped 25% since February, investor appetite is surging, and Almonty's latest quarterly results, while still showing red ink, are being positioned as a turning point. To break it all down, we're joined by Matthias Greiffenberger, an Analyst at GBC AG Research, who just released a report lifting Almonty's price target to CDN$5.50. Matthias has been tracking the company's pivot toward vertical integration, geopolitical alignment, and defense sector exposure. So, we're going to pressure test that outlook and see how much of the runway is real, and how much is just runway lighting. The following is a transcription of the above video, and The Market Online has edited it for clarity. Lyndsay: So why don't we start with your increase. You've raised your target price on Almonty to CDN$5.50 up from CDN$4.20, largely on the back of rising a APT prices and the Sangdong momentum. So my question is, how much of that upside is baked into sentiment versus actual operational de-risking? Matthias: Yes, So the target price increase really reflects a combination of tangible progress and supportive market dynamics. The tungsten price has jumped about 25% in February, which obviously lifts the top line potential. Also, Almonty has hit major operational milestones. So, the Sangdong Mine is essentially construction complete. They've secured final project financing drawdowns, and the commissioning is around the corner. Also, Almonty got the binding offtake agreement with a US defense contractor. So I'd say the upside is rooted in fundamentals, but it's finally catching up to the long-term narrative. Lyndsay: Now, the report also paints Sangdong as a geopolitical trophy in that tungsten war. However, given that commercial production hasn't started quite yet, I mean, how much of Almonty's current valuation is running on narrative over fundamentals? Matthias: I think for Almonty, it's mostly based on reality. On the one hand, the geopolitical narrative is very compelling. It's the only large scale conflict free tungsten mine outside of China with the direct alignment to the US and allied defense needs. And that gives Almonty a clear macro story, but it's more than just a concept. The mine is essentially built, the financing is secured and they've signed real commercial agreements. So the stock market is already reacting. And what we are seeing in the valuation is a market that is pricing in the near term execution and based on the current progress, I think that seems justified. Lyndsay: So, let's flip over here then. You're forecasting CDN$222 million EBITDA by 2027, yet this quarter's adjusted EBITDA was still deeply negative. So what's the inflection point in your model that flips the story from speculative to cash machine? Matthias: I think the inflection point is quite clear. It's the switch on of Sangdong. The mine is set to enter production, the second half of 2025 with ramp up completed by year end. So that's when we expect the shift from development stage overhead to revenue generating operations. And also, Sangdong's grades are significantly higher than what we see at Panasqueira in Portugal. So that translates into much stronger production economics. So once the ore starts moving, we anticipate a rapid margin expansion, and the business is transitioning then into a cash machine. Lyndsay: Matthias let's look at the risk side of that. The $25.8 million non-cash warrant revelation knocked report earnings hard, is this just IFRS noise or a structural overhang that investors need to factor into their long-term thesis? Matthias: Honestly, it's mostly accounting noise though important to understand. The loss comes from IFRS rules around the market valuation of outstanding warrants. And because Almonty's share price more than doubled in the quarter, those warrants, which are liabilities on the books, have to revalue it higher. And that's generating a non-cash loss. So, it doesn't reflect business weakness. In fact, it reflects strength in the stock price. So, it's something to be aware of, but it's not a structural issue. So, all in all, Almonty is entering a transformational phase. The groundwork has been laid, the financing, the infrastructure, the partnerships, and now we are on the verge of seeing the full impact of the development. Lyndsay: Well, that's a wrap on this episode of Capital Compass. Thank you Matthias, for going beyond the headline numbers and walking us through the real drivers behind this new CDN$5.50 price target on Almonty. So definitely come back again and give us some more insight soon. To dig into the full report you can find it at GBC Research, and to learn more about GBC and their confllicts of interest, head to their website at I'm Lyndsay Malchuk with Stockhouse Publishing The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
Yahoo
06-02-2025
- Business
- Yahoo
3 TSX Growth Companies With At Least 11% Insider Ownership
As the Canadian economy faces challenges with a recent contraction in GDP and rate cuts by the Bank of Canada amid tariff uncertainties, investors are keenly observing growth opportunities that may arise from these shifting dynamics. In such an environment, companies with substantial insider ownership often stand out as they can signal confidence from those closest to the business, making them potential candidates for investors looking to capitalize on growth within a recovering market. Name Insider Ownership Earnings Growth Propel Holdings (TSX:PRL) 36.5% 38.9% Robex Resources (TSXV:RBX) 28.2% 130.7% Orla Mining (TSX:OLA) 11.5% 40.8% West Red Lake Gold Mines (TSXV:WRLG) 13.5% 77.6% Allied Gold (TSX:AAUC) 17.7% 79.2% Almonty Industries (TSX:AII) 17.2% 53% Aritzia (TSX:ATZ) 18.6% 45.1% Enterprise Group (TSX:E) 32.2% 56.3% Colliers International Group (TSX:CIGI) 14.1% 23.9% CHAR Technologies (TSXV:YES) 10.8% 60.5% Click here to see the full list of 43 stocks from our Fast Growing TSX Companies With High Insider Ownership screener. Here's a peek at a few of the choices from the screener. Simply Wall St Growth Rating: ★★★★★★ Overview: Almonty Industries Inc. is involved in the mining, processing, and shipping of tungsten concentrate with a market cap of CA$377.87 million. Operations: Almonty Industries Inc.'s revenue is derived from its activities in mining, processing, and shipping tungsten concentrate. Insider Ownership: 17.2% Almonty Industries is positioned for growth with high insider ownership, trading significantly below its estimated fair value. The company anticipates becoming profitable within three years, with revenue growth forecast at 45.8% annually, outpacing the Canadian market. Recent strategic moves include a private placement raising CAD 2 million and an exclusive offtake agreement for its Sangdong Molybdenum Project, expected to enhance financial stability and reduce South Korea's reliance on Chinese molybdenum imports. Click to explore a detailed breakdown of our findings in Almonty Industries' earnings growth report. Our expertly prepared valuation report Almonty Industries implies its share price may be too high. Simply Wall St Growth Rating: ★★★★★★ Overview: Orla Mining Ltd. is involved in the acquisition, exploration, development, and exploitation of mineral properties with a market cap of CA$2.99 billion. Operations: The company generates revenue from the evaluation and exploration of mineral exploration properties, totaling $314.10 million. Insider Ownership: 11.5% Orla Mining is poised for growth with substantial insider ownership, bolstered by its strategic acquisition of the Musselwhite Gold Mine for $810 million. This move doubles Orla's annual gold production capacity and enhances cash flow, supporting organic growth plans. Recent private placements involving key investors like Pierre Lassonde underscore confidence in Orla's trajectory. Despite a dip in profit margins, earnings are forecast to grow significantly at 40.83% annually, outpacing the Canadian market. Delve into the full analysis future growth report here for a deeper understanding of Orla Mining. Our valuation report unveils the possibility Orla Mining's shares may be trading at a premium. Simply Wall St Growth Rating: ★★★★☆☆ Overview: TerraVest Industries Inc. is a company that manufactures and sells goods and services across various sectors including agriculture, mining, energy, chemicals, utilities, transportation, and construction in Canada, the United States, and internationally with a market cap of CA$2.54 billion. Operations: The company's revenue segments consist of CA$203.45 million from Service, CA$110.10 million from Processing Equipment, CA$269.56 million from Compressed Gas Equipment, and CA$329.58 million from HVAC and Containment Equipment. Insider Ownership: 21% TerraVest Industries shows promise with its recent inclusion in multiple S&P/TSX indices, indicating market recognition. Despite a decrease in quarterly net income, annual earnings grew by 51.1%, and revenue is forecast to grow at 10.4% annually, outpacing the Canadian market's growth rate. The company has increased its dividend by 17%, reflecting confidence in future cash flows. Insider activity over the past three months indicates more buying than selling, though significant selling was noted recently. Click here to discover the nuances of TerraVest Industries with our detailed analytical future growth report. In light of our recent valuation report, it seems possible that TerraVest Industries is trading beyond its estimated value. Unlock more gems! Our Fast Growing TSX Companies With High Insider Ownership screener has unearthed 40 more companies for you to here to unveil our expertly curated list of 43 Fast Growing TSX Companies With High Insider Ownership. Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years. Companies discussed in this article include TSX:AII TSX:OLA and TSX:TVK. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
