Almonty’s Accounting Quirk Masks a Tungsten Triumph—But Delays Stir Doubt

A net loss ballooning to nearly 162 million Canadian dollars would normally signal distress. For Almonty Industries, it tells a story of explosive share-price gains. The tungsten producer booked a roughly 97-million-dollar non-cash charge tied to the revaluation of embedded derivatives, triggered by a stock that rocketed from 1.36 to over 12 dollars in 2025. The result: a headline loss that masks what management calls a year of operational progress.

Revenue climbed 13 percent to 32.5 million dollars. But the real action is underground in South Korea, where Almonty has wrapped up the first commissioning phase at its Sangdong mine. The facility, designed to process around 640,000 tonnes of ore annually and produce some 2,300 tonnes of tungsten concentrate per year, marks the site’s return to production after more than three decades of inactivity. Attention now turns to optimizing the plant.

That operational focus has hit a snag. Reports of delays at Sangdong sent the stock sliding roughly 6.6 percent in European trading to 17.26 euros, while shares in Canada closed at 26.59 Canadian dollars, down nearly five percent. The setback comes at a delicate moment: the April high of 32.07 Canadian dollars now sits about 17 percent above the current price, though the stock has still multiplied more than sevenfold over the past twelve months.

The timing is particularly painful given the state of the tungsten market. Ammonium paratungstate (APT) in Rotterdam now fetches around 3,185 US dollars per metric tonne unit—a roughly 900 percent surge from a year ago. Behind that rally lies a structural supply crunch. China controls about 80 percent of global tungsten output and has capped export licenses to just 15 authorized companies through 2027. From January next year, a US procurement ban will prohibit the use of tungsten from China, Russia, Iran and North Korea in defense applications. The United States has had no commercial tungsten production of its own since 2015.

Should investors sell immediately? Or is it worth buying Almonty?

Almonty is betting heavily on filling that gap. In April it moved its headquarters to the US. The Gentung Browns Lake project in Montana, fully acquired in 2025, is expected to be production-ready in the second half of 2026 and ranks among the most advanced undeveloped tungsten deposits in America.

Shareholders will gather in Toronto on June 9 for the annual meeting. The agenda is routine: they will vote on setting the board size at seven members and approve executive compensation, which after an external review will rise to nearly 280,000 dollars annually, mostly in deferred share units.

Analysts remain bullish despite the near-term turbulence, setting a price target of 25 dollars. They point to reduced risk at Sangdong and record APT prices as tailwinds. A Phase 2 expansion at the Korean mine is slated for 2027, aiming to double capacity. At full tilt, Sangdong could supply roughly 40 percent of the world’s tungsten demand outside China.

Almonty at a turning point? This analysis reveals what investors need to know now.

The question now is how quickly Almonty can iron out the production kinks at Sangdong. With the tungsten boom in full swing and geopolitical tailwinds strengthening, the company’s ability to convert market opportunity into operating results will determine whether the stock’s recent stumble is a buying opportunity or a warning sign.

Ad

Almonty Stock: New Analysis - 5 May

Fresh Almonty information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated Almonty analysis...

en | CA0203981034 | ALMONTY’S | boerse | 69279211 |