Almonty’s H1 2025: Revenue Down 4%, Net Loss Soars 1,557% on Warrant Revaluation

• Revenue declined slightly by 4% to CAD 15.1 million
• Net loss surged 1,557% to CAD 92.8 million due to warrant and derivative liability revaluation
• Completed 1.5-for-1 share consolidation in July 2025
• Closed US$90 million initial public offering on Nasdaq in July 2025
• Working capital deficiency persists despite new financing and expected positive cash flow

Financial Highlights and Loss Drivers

Almonty Industries Inc. has released its interim financial results for the six months ending June 30, 2025, revealing a complex picture. While revenues dipped marginally by 4% to CAD 15.1 million, the company reported a staggering net loss of CAD 92.8 million, a 15-fold increase compared to the prior year. This dramatic loss is primarily attributed to a non-cash revaluation of warrant and derivative liabilities, reflecting a significant rise in Almonty’s share price during the period. Management emphasized that this accounting adjustment, mandated under IFRS, does not affect cash flow and does not reflect the underlying operational performance.

Operational and Project Updates

Almonty continues to mine and ship tungsten concentrate from its Panasqueira Mine in Portugal, while advancing development at the Sangdong Mine in South Korea. The company also maintains interests in the Valtreixal and Los Santos mines in Spain, with the latter currently under care and maintenance. Capital expenditures remain robust, particularly at Sangdong, underscoring Almonty’s commitment to expanding its production capacity. Despite operational challenges, no impairment indicators were noted for key assets.

Capital Structure and Market Moves

In a strategic move to streamline its capital structure, Almonty effected a 1.5-for-1 share consolidation in early July 2025. Shortly thereafter, the company successfully closed a US$90 million initial public offering on the Nasdaq, issuing 20 million common shares at US$4.50 each. This IPO marks a significant milestone, broadening Almonty’s investor base and enhancing liquidity. The company also raised additional funds through warrant, option, and convertible debenture exercises during the period.

Liquidity and Risk Considerations

Despite the influx of capital, Almonty reported a working capital deficiency of CAD 13 million as of June 30, 2025, though this is an improvement from the prior year. The company secured new financing totaling CAD 8.5 million and expects sufficient cash flow from operations and financing activities to sustain its business for at least the next year. Key risks remain, including exposure to foreign currency fluctuations, interest rate variability, and the burden of substantial debt obligations. Notably, the company remains compliant with all loan covenants, mitigating immediate refinancing risks.

Looking Ahead

Almonty’s next chapters will be shaped by its ability to translate its development projects into operational cash flow and manage the complexities of its capital structure. The recent Nasdaq listing provides a platform for future capital raises, but investors will be watching closely for operational progress and how the company navigates its debt and currency risks in a volatile market environment.

Bottom Line?

Almonty’s financials underscore the tension between accounting realities and operational fundamentals as it embarks on a new growth phase post-IPO.

Questions in the middle?

• How will Almonty’s operational cash flow evolve as Sangdong ramps up production?
• What impact will currency fluctuations have on Almonty’s profitability going forward?
• Can the company effectively manage its debt maturities and avoid refinancing risks?