Almonty’s $68M Ore Backlog and a Pentagon Countdown Fuel a New Chapter in Tungsten Supply
Published on 07/01/2026 at 20:14 | Redaktion boerse-global.de
The switch from mine developer to active producer rarely comes with a fully stocked larder. Almonty Industries, however, has stacked nearly 139,700 tonnes of raw ore at its Sangdong mine in South Korea — enough material with an average tungsten trioxide grade of 0.25% to yield an estimated US$68 million in raw value at current historically high tungsten prices. That stockpile is now feeding the site’s newly commissioned processing plant, which began operations in June.
Chief executive Lewis Black called the startup a pivotal moment, one the team had been working toward for years. The plant is currently running on stockpiled rock to stabilise quality during the delicate ramp-up phase. The immediate prize: turning that ore into saleable concentrate and generating real revenue for the first time in the company’s history.
Management also strengthened the balance sheet in June, closing a US$800 million convertible note offering that attracted demand well above supply. After fees, Almonty booked roughly US$773 million, earmarked for debt restructuring and potential acquisitions. The company’s latest annual revenue came in at about US$36 million, with a gross margin near one-third — a solid foundation on which to layer the new production cash flow.
Should investors sell immediately? Or is it worth buying Almonty?
The market has taken notice, but not without a dose of caution. Almonty’s shares climbed 264% over the past year, though they now trade at around C$23.67, roughly 29% below the April peak. The company’s market capitalization hit US$4.6 billion in early July (about C$6.66 billion). As if to underscore its new stature, the stock was promoted to the Russell 1000 and Russell 3000 indices late last month, a move that should draw passive fund inflows and institutional attention.
The strategic gravity behind Sangdong, however, goes well beyond index inclusion. China controls roughly 80% of global tungsten production, a concentration that has become a glaring vulnerability for Western supply chains. The US Department of Defense has already mandated that, from 2027, certain military components must use tungsten sourced from allied nations. Almonty is positioning itself as the ready domestic alternative.
To that end, the company has relocated its headquarters to Montana and is advancing the local Gentung?Browns Lake project. Feasibility studies on that site’s production readiness are set to begin this month — a timeline that aligns precisely with the Pentagon’s looming deadline.
Analysts remain constructive. One recent rating set a C$25.00 price target on the stock, implying upside from current levels. The next catalyst is already on the horizon: the first deliveries of tungsten concentrate to international customers, which will put the company’s transition from developer to global supplier beyond any doubt.
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