Global demand for tungsten is rising sharply as defense spending increases, military stockpiles are replenished, and export controls from China tighten supply. This environment creates clear opportunities for established producers outside China.

Almonty Industries Inc. (AII:TSX; ALM:NASDAQ; AII:ASX; ALI1:Frankfurt) stands out because of its advanced Sangdong project in South Korea, which is one of the largest and highest-grade tungsten deposits in the world.

The company also operates the Panasqueira mine in Portugal and holds additional assets in the United States and Spain, giving it a diversified production base that can help address Western supply chain gaps.

Strategic Financing Strengthens Balance Sheet

Almonty recently completed an oversubscribed offering of 2.25 percent convertible senior notes due 2031. According to a June 5 release. The notes are senior unsecured obligations and carry a low interest rate with semi-annual payments beginning in 2027. The transaction closed on June 9 after the initial purchasers exercised their option for an additional US$100 million, bringing the total to US$800 million before fees.

Net proceeds are expected to reach approximately US$675.9 million, or up to US$772.7 million if all additional notes are included. The company intends to use roughly US$83 million for capped call transactions, about US$50 million to refinance existing debt, and the balance for working capital, general corporate purposes, and potential acquisitions. This capital structure provides flexibility to complete the ramp-up at Sangdong and advance other projects without immediate equity dilution pressure.

Sangdong Mine Enters Commercial Phase

The formal commissioning of the Sangdong tungsten mine took place in March 2026, marking the end of the development stage and the start of commercial operations, as per a release on May 11. Once the facility reaches full throughput, it is expected to become a major source of non-Chinese tungsten supply for both industrial and defense customers. The project benefits from high-grade ore and established infrastructure in South Korea, supporting efficient long-term production.

In parallel, Almonty relocated its corporate headquarters to Dillon, Montana. This move improves proximity to U.S. defense and industrial partners as well as the Gentung Tungsten Project, which is scheduled to begin development later in 2026.

Recent Financial Results Show Clear Progress

For the first quarter ending March 31, 2026, Almonty reported revenue of CA$25.4 million, representing a 221 percent increase from the same period a year earlier. The growth was driven by higher ammonium paratungstate prices and steady output at the Panasqueira mine, which remains the primary producing asset until Sangdong reaches full capacity. Operating cash flow turned positive at CA$9.7 million, compared with a negative CA$4.4 million in the prior-year quarter.

Production costs rose at a slower rate than revenue, improving operating leverage. Income from mining operations increased substantially to CA$13 million. While the company recorded a net loss of CA$5.3 million due to non-cash IFRS adjustments tied to rising share price, the underlying operational metrics reflect a meaningful inflection point.

Analyst Perspectives Highlight Growth Catalysts

Sphene Capital analyst Peter Thilo Hasler maintained a Buy rating and a CA$37.40 target price after incorporating the net present value of both current and future assets, including Sangdong, Panasqueira, Gentung, and Los Santos.

Alliance Global Partners analyst Jake Sekelsky raised his target to US$26.25 while keeping a Buy rating, citing the expected revenue expansion once Sangdong achieves full output.

Cantor Fitzgerald analyst Matthew O’Keefe also maintained a Buy rating with a US$25.80 target, noting the strengthened balance sheet supports project completion.

These updates reflect the market’s recognition that Sangdong represents a pivotal catalyst in the second half of 2026, followed by U.S. production at Gentung that aligns with domestic supply-chain priorities.

Global Tungsten Market Dynamics

Recent Chinese export restrictions have tightened availability and driven prices of Rotterdam ammonium paratungstate to record levels. Tungsten’s extreme hardness and heat resistance make it essential for armor-piercing munitions, semiconductors, and oil and gas equipment, as reported by Brian Ford for Industrial Info Resources on June 1.

Seventy active capital projects worldwide represent a total investment of US$6.9 billion, yet the United States currently has no commercial tungsten mines in operation, noted a piece by Ashitha Shivaprasad and Anmol Choubey for Reuters on April 29. This supply imbalance underscores the strategic value of Almonty’s non-Chinese assets.

Ownership and Share Structure

¹Insiders and management hold about 8 percent of the company, corporations own roughly 11 percent, and institutions hold about 36 percent, with the remainder held by retail investors. Leading shareholders include Global Tungsten & Powders Corp., Lewis Black, Van Eck Associates Corp., Deutsche Rohstoff AG, and Fidelity Management and Research Co. The market capitalization stands at CA$8.16 billion with 283.74 million shares outstanding.

Excelsior Prosperity highlighted on May 12 that Almonty is viewed as a bellwether for the tungsten sector. The combination of operational momentum, a robust cash position, and multiple development catalysts positions the company to benefit from sustained tungsten demand over the coming years.