Almonty's Korean Tungsten Engine Turns Over as Western Buyers Scramble for Supply
Published on 08/16/2026 at 19:02 | Redaktion boerse-global.de
The transition from developer to producer rarely comes with a clean handoff, but Almonty Industries is managing the crossover with a full war chest and a mine that has finally begun to earn its keep. The company's Sangdong operation in South Korea has shifted from construction to commercial output, a milestone that sent the stock to $15.09 by Friday's close — a 9.53% gain across five trading sessions, with the final day alone accounting for an 8.9% jump.
From Stockpile to Steady Feed
The processing plant at Sangdong has been running at full throughput since July 2026, converting both newly mined ore and accumulated stockpiles into saleable tungsten concentrate. Phase I is now in its commissioning and ramp-up phase, targeting 640,000 tonnes of annual ore throughput. A fully permitted Phase II would eventually double that figure to 1.2 million tonnes.
The initial feed draws on roughly 139,700 tonnes of run-of-mine ore grading about 0.25% tungsten trioxide (WO?), supplemented by 19,700 tonnes of development ore extracted in Q2 with a richer 0.35% WO? content. Management expects those lower-grade stockpiles to serve as a calibration tool for the plant, with head grades improving as mining advances along the main vein.
Financing for the build-out was secured through the full drawdown of a $75.1 million project loan from KfW IPEX-Bank.
A Contract That Keeps Giving
The production milestone arrives alongside a renegotiated offtake agreement with Global Tungsten & Powders, finalized in July. The amended contract extends the term by six years, lifts total volume by 40%, and improves pricing by roughly 6.3% — a combination that gives the ramp-up a firmer revenue foundation.
Beyond that, 45% of concentrate output is earmarked for US export under existing supply agreements, with the remainder destined for the South Korean domestic market.
Cash, Corporate Moves, and a New Address
Almonty entered the production phase with considerable financial runway. A substantial convertible bond issuance earlier this year left the company with roughly $1.23 billion in cash as of the end of June — enough to pursue multiple growth projects simultaneously, including the Panasqueira mine expansion in Portugal and the Gentung tungsten project in Montana.
The corporate structure is shifting in tandem. The company is relocating its headquarters from Toronto to Dillon, Montana, a move that follows its inclusion in the Russell 1000 and Russell 3000 indices this summer. Jorge Beristain, CFA, stepped in as chief financial officer on June 1, succeeding Brian Fox.
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Geopolitics Meets the Chart
The timing of Sangdong's ramp-up aligns with a tightening Western procurement environment. US defense-related sourcing rules are expected to fully close the so-called "tungsten loophole" for Chinese materials by early 2027, positioning Almonty as a non-Chinese supplier of strategic metal at a moment when buyers are actively diversifying.
Diamond Equity Research updated its view on August 14, framing the company as exiting its development phase and entering execution, with Sangdong poised to become the central earnings driver for the second half of 2026 and into 2027.
On the technical side, the stock climbed from roughly $13.60 to above $15 over the past week. Traders are watching first support between $14.20 and $14.35, with the $16.50–$17.00 zone emerging as the next resistance level. Friday's session saw the shares trade between $14.00 and $15.47 on notably elevated volume. The 52-week range spans $3.97 to $24.41, and the $15.50 mark is expected to draw close attention in the week ahead.
