Almonty Industries: A Wolfram Producer Navigates Split Plans and Supply Squeeze
Published on 04/23/2026 at 00:00 | Redaktion boerse-global.de
Almonty Industries finds itself at the intersection of corporate action and critical commodity demand. The Canadian-listed tungsten producer is finalizing details for a reverse stock split, with management required to set the precise ratio—potentially as high as five-for-one—by April 30. This move aims to reduce the share count and boost the nominal stock price, making it more appealing to institutional investors. The shares currently trade near C$32, having surged 165% year-to-date and an astonishing 720% over the past twelve months.
The strategic rationale extends far beyond financial engineering. A structural shortage of tungsten, a metal essential for semiconductor manufacturing and defense applications, is tightening global supply. Japanese suppliers have formally warned South Korean chipmakers of potential disruptions. Existing global stockpiles are projected to last only until mid-2026, a consequence of stricter Chinese export controls on the raw material it traditionally dominates.
Operationally, Almonty is moving to fill this gap. In early April, the company inaugurated the processing plant at its Sangdong mine in South Korea, which had been shuttered for three decades. The mine is now operational, processing roughly 640,000 tonnes of ore annually to produce about 2,300 tonnes of tungsten concentrate. With an average ore grade of 0.51% tungsten trioxide—triple the global industry average—Sangdong is a high-grade asset. A planned second phase of expansion, targeted for 2027, is designed to supply approximately 40% of the world's tungsten demand outside of China.
This production ramp coincides with a historic price spike. The spot price for ammonium paratungstate has skyrocketed over 500% year-over-year, averaging $2,250 per tonne, driven by severe supply constraints and robust military demand.
Should investors sell immediately? Or is it worth buying Almonty?
The company's positioning within U.S. strategic interests provides a further tailwind. The U.S. government has explicitly exempted Almonty's tungsten products from new tariffs. A long-term supply agreement with the U.S. defense industry secures offtake, a relationship set to become even more crucial as a Pentagon rule banning tungsten from Chinese supply chains takes effect in 2027. To deepen its American ties, Almonty plans to relocate its corporate headquarters from Toronto to Dillon, Montana.
Parallel development is underway in the U.S. itself. The company's Gentung project in Montana, which aims to reuse equipment from Spain, is scheduled to be production-ready in the second half of 2026. Leveraging existing water rights and pipelines, it would mark the first domestic U.S. tungsten production in over a decade.
Financially, the company reported 2024 revenue of $28.8 million, a 28% increase primarily driven by its Panasqueira mine in Portugal. It posted a net loss of $16.3 million, a figure that includes significant non-cash items like derivative and warrant valuation losses ironically linked to the stock's prior strong performance. The firm's market capitalization stands at approximately C$8.63 billion.
The recent share price rally has prompted some profit-taking. Major shareholder Deutsche Rohstoff AG sold a block of shares in early April, realizing a gain of nearly €100 million, though it retains a stake of just under 5%. Meanwhile, institutional interest is growing, with the number of institutional holders rising significantly to 107 in the last quarter. Investment managers like Van Eck Associates have substantially increased their positions.
Almonty at a turning point? This analysis reveals what investors need to know now.
Despite a "Strong Buy" analyst rating that highlights the structural supply deficit, the stock experienced a 6.6% single-day drop recently, illustrating the market's short-term volatility. Analysts currently value the stock at about 1.6 times projected 2027 sales in an optimistic scenario, reflecting a business model focused on acquiring and refurbishing shuttered mines with existing infrastructure to mitigate geological risk and accelerate production.
Investors are now awaiting hard operational data. Almonty is scheduled to report the first full production figures from Sangdong on May 21, followed by an annual general meeting on June 8 where management will detail plans to double the mine's capacity.
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