The stock of tungsten producer Almonty is experiencing a severe technical sell-off. This decline comes despite the company’s ongoing operational expansion and its strategic moves to deepen ties with the U.S. defense sector, creating a stark contrast between its business developments and its market performance. Key technical support levels were breached in the latest trading session, triggering automated sell signals.
Divergence Between Operations and Market Sentiment
Operationally, Almonty continues to push forward with its growth strategy. On December 1, the company appointed retired Brigadier General Steven L. Allen as its new Chief Operating Officer, a move that directly underscores its strengthening connections to U.S. defense procurement.
Furthermore, the acquisition of the Gentung Browns Lake project in Montana for $9.75 million represents a significant strategic pivot. The site is slated to begin tungsten production in the second half of 2026. This is particularly relevant given that the United States has relied entirely on imports for this strategic metal since 2015.
Technical Picture Deteriorates Rapidly
The technical situation deteriorated dramatically within a single day. On the Toronto exchange, the share price fell to CAD 9.51, decisively breaking below its 50-day moving average at CAD 9.68. Such a breach is widely regarded as a classic sell signal, often prompting algorithmic trading systems to offload positions.
The sell-off was even more pronounced on the Nasdaq. There, the stock plunged 7.3% to USD 6.36. Notably, the trading volume of approximately 490,000 shares was below average, suggesting the drop was driven more by a lack of buyers than by panic selling.
Should investors sell immediately? Or is it worth buying Almonty?
Analysts Maintain Bullish Stance Amid Market Pressure
A significant gap exists between the current market price and the targets set by financial institutions. While the market values the shares at USD 6.36, analysts see substantially higher potential. Oppenheimer maintains a price target of USD 12.00, implying an upside of nearly 90%. The average price target among analysts sits around USD 10.17.
This discrepancy highlights the current uncertainty among retail investors, even as institutional observers retain a bullish outlook. The central question remains: which perspective will prove correct?
Key Financial Metrics:
* Current price below 50-day moving average (CAD 9.68)
* Analyst consensus ranges between “Moderate Buy” and “Strong Buy”
* Oppenheimer price target: USD 12.00
* Q3 Revenue: CAD 8.70 million with earnings of CAD 0.19 per share
* Market Capitalization: Approximately USD 1.48 billion
Long-Term Strategy Versus Short-Term Volatility
The company’s third-quarter results delivered mixed messages. Revenue of CAD 8.70 million and positive earnings per share of CAD 0.19 point to operational stability. However, the negative price-to-earnings ratio can be a burden during risk-averse market phases.
The immediate focus is on whether the CAD 9.50 level in Toronto can now act as a support floor. With its flagship Sangdong mine and the newly acquired Montana project, Almonty is positioning itself for long-term relevance within critical supply chains, aiming to look beyond short-term chart turbulence.
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