Almonty’s $490 Million Tungsten Supply Deal Locks in Two Decades of Revenue from Sangdong
Published on 07/14/2026 at 19:24 | Redaktion boerse-global.de
Almonty Industries has effectively turned its South Korean mine into a revenue pipeline for the next generation. The company’s renegotiated offtake agreement with Global Tungsten & Powders (GTP) extends commitments well into the 2040s, securing roughly 90% of the initial production from the Sangdong mine under fixed pricing terms that have improved by 6.3% per unit. The revised contract, announced Tuesday, pushes the total transaction value past $490 million and gives Almonty a degree of revenue visibility rare among junior miners.
The renegotiated deal stretches the original 15-year term to 21 years from the first delivery date, while the aggregate volume rises 40% to 4.41 million metric tonne units (MTU). Once Sangdong reaches full capacity, Almonty guarantees a minimum annual supply of 210,000 MTU. The improved price component per MTU boosts expected annual revenue by roughly $30 million at current APT market rates. GTP, a major Western tungsten powder manufacturer headquartered in Towanda, Pennsylvania, will absorb the bulk of Phase I output, leaving Phase II — a planned expansion that could roughly double processing capacity — completely unencumbered and available for other customers.
The timing of the contract expansion is no coincidence. Almonty announced the start of commercial operations at Sangdong’s processing plant on July 1, 2026, moving the project from development into actual production. Since June the company has been feeding stockpiled ore through the mill to produce tungsten concentrate. The stronger offtake terms signal that GTP has confidence the operation can deliver reliably, a critical vote of confidence for a mine that has been a decade in the making.
Should investors sell immediately? Or is it worth buying Almonty?
Investors initially cheered the news. Shares climbed 5.04% to C$22.31 on Tuesday, recovering from the previous day’s close of C$21.24. Yet the bounce masks a deeper pullback: the stock still trades roughly 33% below its 52-week high of C$33.35, reached on April 17, 2026. Over the past 30 days, Almonty has shed nearly 11% of its value, leaving it below both its 50-day moving average of C$25.12 and its 100-day average of C$25.43. The relative strength index of 45.3 suggests neither overbought nor oversold conditions.
Longer-term trends tell a different story. The shares have more than tripled over the past twelve months, with a 12-month gain of roughly 243% and a year-to-date advance of about 85%. That rally has been anything but smooth — the annualised volatility over the trailing 30-day period stands at 98%, a reminder that this remains a high-octane name. The stock continues to trade nearly 19% above its 200-day average of C$18.82.
Sangdong’s production ramp dovetails with a supply-constrained tungsten market. Concentrate prices have surged from around $900 per MTU at the start of 2025 to more than $3,100 today, driven by tightening global supply. That backdrop gives Almonty strong leverage in pricing negotiations and underpins the economics of the GTP contract. With a large Western buyer locked in for two decades and Phase I output already flowing, the company now faces a straightforward operational challenge: proving it can sustain the throughput the agreement demands. The answer will determine whether the current share price is merely a waypoint on a longer climb, or the ceiling before the next leg.
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