Almonty's Sangdong Mine Moves from Developer to Producer as Tungsten Supply Fears Mount
Published on 07/22/2026 at 16:33 | Redaktion boerse-global.de
The tungsten market's supply squeeze is tightening, and Almonty Industries is positioning itself as the primary Western answer. The Canadian miner has officially transitioned from project developer to active producer at its Sangdong mine in South Korea, a shift that comes as industrial giants from SpaceX to Siemens Healthineers scramble for reliable, non-Chinese sources of the strategic metal.
SpaceX relies on a tungsten-copper composite in its Raptor engines—85 percent tungsten, 15 percent copper—that extends nozzle life from 120 to 450 flight cycles, saving roughly $1.2 million per launch. Siemens Healthineers, meanwhile, uses tungsten collimators for precision cancer radiation therapy. Both companies face mounting pressure as China tightens its grip on global tungsten supply, making Almonty's ramp-up a matter of strategic urgency.
Processing Stockpiled Ore While Fine-Tuning Operations
The Sangdong processing plant began commercial operations in July 2026, working through a stockpile of 139,700 tonnes of run-of-mine ore. At current tungsten prices, that inventory represents a gross value of approximately $68 million. The material was extracted during the first half of 2026 and covers roughly 2.6 months of Phase I processing capacity.
This commissioning period is critical. Almonty is using the stockpiled ore to optimize its flotation circuits and ensure consistent concentrate quality before the mine reaches full production. The first ore was extracted in December 2025, and the company is now focused on transitioning from processing inventory to continuous mining output.
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Phase I capacity stands at 640,000 tonnes of ore per year, yielding 2,300 tonnes of tungsten concentrate annually. By 2027, Almonty plans to nearly double that figure to 4,600 tonnes, which would cover roughly 40 percent of tungsten demand outside China.
A 21-Year Offtake Deal Locks in Revenue Through the 2040s
The commercial backbone of Sangdong is a recently extended offtake agreement with Global Tungsten & Powders, a subsidiary of the Plansee Group. The contract has been lengthened from 15 to 21 years, securing a buyer for approximately 90 percent of Phase I production well into the late 2040s.
The renegotiated terms include a 40 percent increase in purchase volume and a 6.3 percent improvement in pricing. At full Phase I output, the deal is expected to generate roughly $490 million in annual revenue for Almonty. That revenue stream is largely locked in before the mine even reaches its full capacity, giving the company unusual visibility for a junior miner.
Analysts at Sphene Capital responded by raising their price target to C$38.90, citing improved project economics and Sangdong's strategic importance as a tungsten source outside China for defense and high-tech industries. Diamond Equity Research has set a target of C$31.80.
Streamlining the Corporate Structure
Almonty is also simplifying its listing structure. The company will voluntarily delist from the Toronto Stock Exchange at the close of trading on July 31, 2026. The move reflects trading reality—the vast majority of daily volume now flows through the Nasdaq Capital Market under the ticker ALM. By eliminating the dual listing, Almonty cuts administrative and compliance costs while maintaining its secondary listings on the Australian Securities Exchange and the Frankfurt Stock Exchange.
Financing the Expansion
To fund the build-out, Almonty issued a convertible bond in June worth $700 million with a 2.25 percent coupon. Shareholder dilution only kicks in above a conversion price of $40, providing some protection for existing equity holders.
The operational progress is already showing in the financials. First-quarter 2026 revenue surged 221 percent to C$25.4 million, with operating cash flow reaching C$9.7 million. The next quarterly results are due on August 7, 2026, and will offer the clearest signal yet of how quickly Sangdong's capacity expansion is translating into top-line growth.
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Political Tailwinds from Washington
The geopolitical environment is increasingly favorable for Western tungsten producers. Starting in 2027, the Pentagon plans to block tungsten imports from certain sources, a move that would further advantage producers like Almonty with operations outside China. The company is also advancing projects beyond Korea—the Gentung Browns Lake project in Montana, targeting 140,000 MTU annually, is expected to begin production this year, while the existing Panasqueira mine in Portugal is being expanded to 124,000 MTU per year.
Market Reaction and Technical Picture
The stock gained 6.86 percent on Tuesday, closing at C$20.87, following the production start announcement. Despite a 20.89 percent decline over the past 30 days, the shares remain up 72.91 percent year-to-date. The relative strength index sits at 44.7, placing the stock in neutral territory as the market waits for evidence that Sangdong can transition smoothly from processing stockpiles to sustained mining output.
The July 31 delisting date marks the next concrete milestone, followed by the August 7 earnings release—two events that will test whether Almonty's transformation from developer to producer can sustain the momentum built over the past year.
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