How Will Almonty Turn $75M Financing Into Tungsten Production by Year-End?
Almonty Industries reports steady tungsten market conditions and completes key financing for its Sangdong Mine, while posting a $34.6 million net loss in Q1 2025. The company advances its US Domestication and plans to restart Los Santos Mine in 2026.
- Completed US$75.1 million project financing with KfW IPEX-Bank
- Net loss of $34.6 million driven by non-cash warrant valuation losses
- Los Santos Mine remains on care and maintenance, reopening planned for early 2026
- Panasqueira Mine shows slight production decline but improved revenue and cost control
- US Domestication to Delaware approved by shareholders, pending completion
Stable Tungsten Market and Strategic Financing
Almonty Industries Inc. has reported its financial results for the first quarter ended March 31, 2025, highlighting a stable tungsten market with spot prices for ammonium para tungstate (APT) averaging around US$395 per metric tonne unit. This price level notably exceeds prior forecasts and supports the company’s near-term outlook.
Crucially, Almonty completed its US$75.1 million project financing facility with KfW IPEX-Bank, receiving the final drawdown in January 2025. This milestone secures funding for the development of the Sangdong Mine in South Korea, a project positioned as one of the few long-life, high-grade tungsten deposits outside China. The company expects Sangdong to commence production by the end of 2025, which should materially improve cash flows.
Operational Updates: Mines and Development
The Los Santos Mine in Spain remains on care and maintenance since February 2020, with plans to reopen in early 2026 following a €1 million capital expenditure aimed at improving tungsten recovery from tailings. Meanwhile, the Panasqueira Mine in Portugal experienced a modest 1.7% production decline compared to Q1 2024 but saw a slight revenue increase and ongoing reductions in all-in production costs. The company continues to refine mine plans and expects ore grades to trend towards long-term averages, enhancing operational efficiency.
At the Valtreixal Project in Spain, recent land reclassification has cleared the way for mining permits and the advancement of an open-pit mine plan, signaling potential future development.
Financial Performance and Capital Structure
Almonty reported gross revenue of $7.9 million for Q1 2025, nearly flat year-over-year, but recorded a net loss of $34.6 million, a significant increase from the $3.8 million loss in Q1 2024. The widened loss primarily stems from non-cash accounting charges related to the revaluation of warrant liabilities, driven by the company’s share price rising from C$0.91 to C$2.25 during the quarter.
General and administrative expenses rose sharply to $3.4 million, reflecting increased legal and shareholder communication costs associated with the company’s US Domestication process. Almonty’s long-term debt increased to $171.6 million as of March 31, 2025, with ongoing obligations including loans from European banks and convertible debentures.
Corporate Restructuring and Governance
In a strategic move, Almonty’s shareholders approved the company’s US Domestication to Delaware in February 2025, aligning its jurisdiction with the growing importance of the US market and its regulatory environment for critical materials. This transition remains pending but is expected to provide legal clarity and governance benefits.
The company disclosed a material weakness in internal controls over financial reporting dating back to 2019, with remediation plans underway to strengthen financial close processes and disclosure controls. Management affirms that despite this weakness, the financial statements fairly present the company’s financial position.
Looking Ahead
Almonty’s outlook hinges on the successful commissioning of the Sangdong Mine by year-end, which is anticipated to drive positive cash flow and reduce reliance on external financing. The company continues to manage operational risks, currency fluctuations, and commodity price volatility, all critical factors for sustaining its growth trajectory.
Bottom Line?
With Sangdong’s production on the horizon and US Domestication underway, Almonty’s next quarters will test its ability to convert financing and strategic moves into operational and financial stability.
Questions in the middle?
- Will Sangdong Mine meet its end-of-2025 production target without delays or cost overruns?
- How will Almonty manage its significant long-term debt amid fluctuating tungsten prices?
- What impact will the US Domestication have on Almonty’s governance and investor relations?