Almonty Secures 21-Year Tungsten Supply Deal as Western Buyers Race to Replace Chinese Imports

The scramble for non-Chinese tungsten supply has handed Almonty Industries a significantly upgraded offtake agreement for its Sangdong mine in South Korea, just as the US defense sector faces an imminent ban on purchases from China. Global Tungsten & Powders (GTP), a Plansee Group subsidiary and a key supplier to the Pentagon, has extended its contract with Almonty from 15 to 21 years while increasing the committed volume by 40% to 4.41 million MTU. The deal also includes a 6.3% improvement in pricing, pushing expected annual revenue to roughly $490 million at current APT prices — an extra $30 million per year or around $630 million over the full contract term.

The renegotiation comes against a backdrop of explosive price action in tungsten markets. The APT benchmark price has surged from about $331 per MTU at the start of 2025 to approximately $1,900 per MTU by February 2026, driven by Chinese export controls that have tightened supply for Western buyers. That pressure will intensify from January 1, 2027, when a US Department of Defense directive prohibiting tungsten purchases from China, Russia, Iran, and North Korea takes full effect. Almonty’s Sangdong operation — whose processing plant began throughput operations on July 1 — positions itself as one of the few viable non-Chinese sources capable of filling that gap.

The expanded offtake covers roughly 90% of Sangdong’s Phase I production, with a minimum annual take of 210,000 MTU once the mine reaches full output. Phase II, which would double capacity, remains explicitly outside the agreement, leaving additional upside for a later date. CEO Lewis Black described the revenue visibility as “unparalleled” in the sector, highlighting that the partnership with GTP dates back to 2018. He noted that the improved pricing alone adds at least $30 million in annual income, or roughly $630 million over the contract’s extended life.

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

Other tungsten producers are also benefiting from the supply squeeze. Group 6 Metals reported positive cash flow of $35 million at its Dolphin mine on King Island during the June quarter, with revenue jumping 142% sequentially after nearly collapsing in 2024.

On the Toronto Stock Exchange, Almonty’s shares closed at C$22.31, up 5.63% over the week but down roughly 11% over the past month. Year-to-date, the stock has still rallied 85.45%, and over 12 months the gain stands at 235.49%. The 52-week high of C$33.35 — reached on April 17, 2026 — leaves the current price about 33% below that peak, while the gap from the 52-week low of C$4.36 from July 2025 is more than 411%. The stock trades below its 50- and 100-day moving averages but about 18.5% above the 200-day line of C$18.82, suggesting the longer-term uptrend remains intact despite recent consolidation. The 30-day annualized volatility remains elevated at nearly 98%, while the RSI of 45.3 points to a neutral reading.

Analysts remain broadly bullish. TipRanks rates the stock a buy with a C$33 target, Oppenheimer sees potential at $25 US, and Alliance Global sets a target of C$26.25. The strengthened contract with GTP, in their view, further solidifies Almonty’s long-term earnings profile in a market where geopolitical constraints are structurally tightening tungsten supply for the West. Whether that fundamental visibility translates into a near-term price recovery will likely depend on how investors digest the recent volatility and the pullback from the year’s highs.

Ad

Almonty Stock: New Analysis - 15 July

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 | boerse | 69771352 |