Almonty Flips the Switch at Sangdong as a 21-Year Offtake Pact Rewrites the Revenue Outlook
Published on 07/22/2026 at 05:01 | Redaktion boerse-global.de
Almonty Industries has crossed the threshold from developer to producer at its Sangdong tungsten mine in South Korea, and the market has taken notice. Shares climbed 6.86% on Tuesday to C$20.87, building on a year that has already delivered a 72.91% gain from the start of 2026. The stock remains roughly 37% below its 52-week high of C$33.35 from April, but sits comfortably above its 200-day moving average of C$19.05 — a level analysts often read as a floor.
The catalyst is twofold. First, the company’s newly commissioned processing plant at Sangdong has begun treating a stockpile of roughly 139,700 tonnes of run-of-mine ore, producing saleable tungsten concentrate. Management deliberately started with lower-grade material averaging about 0.25% tungsten trioxide to fine-tune the circuit. At prevailing market prices, the tungsten content locked in that stockpile carries a theoretical gross value of roughly US$68 million — a figure that underscores the raw potential even before the mine reaches nameplate capacity.
Second, Almonty has overhauled its offtake agreement with Global Tungsten & Powders, a subsidiary of the Plansee Group. The contract now runs for 21 years instead of its previous term, covers approximately 90% of Phase I production from Sangdong, and has been expanded by 40% to 4.41 million metric tonne units. At current prices, analysts estimate the deal could generate annual revenue of up to US$490 million. Sphene Capital reacted by lifting its price target to C$38.90 from C$37.40, implying roughly 86% upside from Tuesday’s close on a 36-month horizon. Analyst Peter Thilo Hasler cited the improved pricing formula and higher volumes as key drivers of visibility on future cash flows.
Should investors sell immediately? Or is it worth buying Almonty?
Phase I of Sangdong is designed to produce around 2,300 tonnes of tungsten concentrate annually once fully ramped. A Phase II expansion, expected in 2027, would double that capacity. For a mining company still burning cash during its ramp-up — negative operating cash flow is typical at this stage — the long-term contract provides a rare degree of revenue certainty.
The strategic backdrop is equally important. Tungsten is classified as a critical mineral for defense, aerospace, and advanced electronics, and China dominates the global supply chain. Export restrictions and geopolitical tensions have made Western buyers increasingly anxious about security of supply. Almonty is positioning itself as one of the few non-Chinese producers capable of filling that gap. Beyond Sangdong, the company is advancing the Gentung-Browns Lake project in Montana, where first production could come as early as the second half of 2026.
In a separate but consequential move, Almonty has announced it will voluntarily delist from the Toronto Stock Exchange by the end of July 2026. The company will concentrate its listing on the Nasdaq Capital Market under the ticker ALM, where the vast majority of daily trading volume already occurs. Management cited lower administrative and compliance costs as the rationale. Canadian shareholders will still be able to trade the stock through brokers that offer Nasdaq access.
The stock has been volatile in recent weeks, shedding roughly 21% over the past 30 days before Tuesday’s bounce. But with Sangdong now generating product, a 21-year revenue backstop in place, and a streamlined corporate structure, Almonty enters the next phase of its story with a clearer line of sight to stable earnings — and a market that is watching closely.
Ad
Almonty Stock: New Analysis - 22 July
Fresh Almonty information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
