Almonty's Tungsten Bet Gains Momentum as Korean Output Meets Western Defense Demand
Published on 08/16/2026 at 14:32 | Redaktion boerse-global.de
The stars are aligning for Almonty Industries. The tungsten producer's shares have been on a tear, propelled by a confluence of geopolitical tailwinds and operational milestones that position the company as a key Western supplier of a metal deemed critical for defense applications.
The stock's recent surge — a 12.6 percent jump on Sunday followed by an 8.9 percent gain to $15.09 on Friday — reflects growing investor conviction that Almonty is in the right place at the right time. The catalyst is twofold: the ramp-up of its Sangdong mine in South Korea and surging demand from European defense contractors, most notably Rheinmetall.
Defense Demand Creates Structural Tailwind
Rheinmetall's ambitious expansion plans underscore the strategic importance of tungsten. The German arms manufacturer aims to boost its 155-millimeter artillery shell capacity to 1.1 million units by 2027 and 1.5 million by 2030. Tank ammunition production is slated to reach roughly 240,000 rounds from 2027, while medium-caliber ammunition is targeted at four million units by the end of the decade. Tungsten, a critical component in such munitions, sits at the heart of this production surge.
Almonty's positioning as a non-Chinese tungsten supplier has become increasingly valuable. Reports indicate that US procurement rules for defense goods are tightening, with a so-called "Tungsten Loophole" for Chinese materials expected to be fully closed by early 2027. This regulatory shift, combined with the defense spending boom, has thrust Almonty into the spotlight.
Sangdong Comes Online
The operational centerpiece is the Sangdong mine, which began processing ore in early July. The processing plant achieved full throughput in July 2026, marking the completion of the construction phase and the start of revenue generation. Initial feed came from a stockpile of roughly 139,700 tonnes of run-of-mine ore with a tungsten trioxide (WO?) content of about 0.25 percent. In the second quarter prior to the production start, Almonty extracted an additional 19,700 tonnes of development ore with a higher grade of 0.35 percent WO?.
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The project's financing was secured through the full drawdown of a $75.1 million project loan from KfW IPEX-Bank. Management anticipates that the initially lower ore grades from the stockpiles will serve the plant optimization process, with grades expected to improve as development advances along the main vein.
Despite the operational progress, the stock had retreated roughly 33.2 percent from its post-production-start peak before this week's rebound — a pullback that Friday's and Sunday's gains have only partially reversed.
North American Expansion and Corporate Restructuring
Beyond Korea, Almonty is broadening its resource base across North America. Canada is contributing C$8.2 million to the Sisson project, while the US is adding $15 million. Adelayde is also exploring the adjacent Sisson North area in New Brunswick, which spans 9,780 acres. These investments aim to diversify supply sources beyond Sangdong and secure long-term delivery capacity for Western buyers.
The company is simultaneously overhauling its corporate structure. Almonty is relocating its headquarters from Toronto to Dillon, Montana — a move accompanied by a change in financial leadership. Jorge Beristain, CFA, assumed the role of Chief Financial Officer on June 1, 2026, succeeding Brian Fox. The restructuring follows Almonty's inclusion in the Russell 1000 and Russell 3000 indices this summer and is designed to enhance competitiveness as Western industries face mounting regulatory pressure over critical metals sourcing.
Market Dynamics and Outlook
Friday's trading saw the stock fluctuate between $14.00 and $15.47 on significantly elevated volume. The 52-week range spans from $3.97 to $24.41, underscoring the volatility that has characterized the stock's journey. Traders are now eyeing the $15.50 level as a key resistance point following the recent surge.
Almonty's long-term revenue visibility is supported by existing supply agreements: 45 percent of concentrate production is reserved for export to the United States, with the remainder destined for the South Korean domestic market.
The question of who will develop tomorrow's tungsten deposits looms large as defense demand accelerates. For Almonty, the combination of active production at Sangdong and early-stage projects in Canada and the US represents a dual strategy — near-term delivery capability paired with long-term reserve development. With Rheinmetall's multi-ammunition-class expansion plans, tungsten demand is set to remain structurally elevated for years to come, even as Almonty's share price still sits well below its pre-pullback levels.
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