A significant strategic shift is underway at Almonty Industries. The company, long viewed primarily as a development-stage venture, has fundamentally transformed its profile with the successful commissioning of its flagship Sangdong tungsten mine in South Korea. This transition from developer to active producer is attracting substantial attention from institutional investors, prompting a major reassessment of the firm’s equity.
Institutional Investment Surges on De-Risked Profile
The operational launch in South Korea has materially reduced the company’s risk profile, a change not lost on the investment community. The number of fund investors holding positions in Almonty jumped by more than 55% in the last quarter, reaching a total of 107. Among the most active was Van ECK Associates, which significantly increased its stake to over 11.2 million shares.
This renewed institutional confidence is mirrored by revised analysis from research firms. Diamond Equity Research nearly doubled its earnings per share forecast for the 2026 fiscal year, raising it from US$0.23 to US$0.45. Other analysts have also lifted their price targets in response to the new operational reality:
- DA Davidson: US$25.00
- B. Riley Financial: US$23.00 (up from US$17.00)
- Oppenheimer: US$19.00 (up from US$16.00)
Contracted Revenue and a Favorable Macro Climate
Beyond the production milestone, two additional factors are fueling investor interest. First, Almonty has secured a binding offtake agreement with the U.S. defense sector. A minimum of 40 tonnes of tungsten oxide per month is contracted for use in manufacturing drones, missiles, and munitions. Crucially, a fixed minimum price within this agreement provides a buffer against market price volatility.
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Secondly, the macro environment is turning in the producer’s favor. A forthcoming U.S. ban on Chinese tungsten imports for defense applications, effective from 2027, is expected to significantly tighten supply in North America, benefiting non-Chinese sources like Almonty.
Growth Trajectory and Market Performance
Almonty’s strategy extends beyond the initial phase at Sangdong. While Phase 1 is slated to deliver approximately 2,300 tonnes of tungsten concentrate annually, management is already planning to double capacity by 2027. Further growth is anticipated from supplementary projects in Portugal and the United States.
This operational progress has been reflected in the company’s stock performance. On a yearly basis, the shares have registered a remarkable gain of approximately 545%. They closed Friday’s trading session at C$21.39.
However, the path has not been without volatility, as evidenced by a double-digit percentage single-day decline in late March. The substantial rally and the raised expectations from both analysts and new major investors now place the focus squarely on execution. Over the coming quarters, the Sangdong mine must demonstrate it can consistently and reliably meet its targeted production volumes to justify the market’s renewed confidence.
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