Almonty Industries reported significant losses in Q2 2025 as it advances the Sangdong tungsten mine in South Korea and completes a US$90 million Nasdaq IPO to fund growth projects.
- Sangdong Mine construction on track for H2 2025 production start
- Nasdaq IPO raises US$90 million to fund tungsten oxide facility and operations
- Q2 2025 net loss of $58.2 million driven by non-cash warrant and derivative revaluations
- Panasqueira Mine production declines amid operational adjustments
- New off-take agreements secured for molybdenum and US defense tungsten supply
Strategic Growth Amid Operational Challenges
Almonty Industries Inc. (ASX, AII) has released its financial and operational results for the three and six months ended June 30, 2025, revealing a company in transition. The highlight remains the Sangdong tungsten mine in South Korea, where construction is progressing on schedule and on budget, with commercial production expected in the second half of 2025. This development is central to Almonty’s growth strategy, supported by a recent US$90 million initial public offering (IPO) on Nasdaq, which will primarily fund the construction of a nano tungsten oxide processing plant near the mine.
However, the company’s financial results reflect the costs and complexities of this expansion phase. Almonty reported a net loss of $58.2 million for Q2 2025, a sharp increase from the prior year, largely due to non-cash losses on the revaluation of warrant and embedded derivative liabilities. These accounting adjustments stem from the significant rise in Almonty’s share price post-IPO, underscoring the volatility investors should expect during this growth period.
Operational Performance and Market Position
Production at the Panasqueira mine in Portugal, Almonty’s current revenue-generating asset, declined by over 15% in Q2 2025 compared to the previous year. This reduction was attributed to fewer underground faces being worked and a temporary shift of resources to lower-grade ore zones. Shipment volumes also fell nearly 19%, impacting revenues. Despite these setbacks, Panasqueira continues to provide valuable cash flow and by-product revenues from copper and tin, supporting the company’s broader portfolio.
Almonty has secured several strategic off-take agreements to underpin future revenues. Notably, it entered an exclusive long-term molybdenum concentrate supply deal with SeAH M&S, Korea’s largest molybdenum processor. Additionally, a three-year agreement was signed to supply tungsten oxide exclusively for U.S. defense applications, reflecting Almonty’s growing role in critical mineral supply chains amid geopolitical tensions.
Financial Position and Capital Management
The company’s balance sheet shows increased long-term debt, rising to $192.7 million as of June 30, 2025, reflecting ongoing capital expenditures at Sangdong and other projects. Cash reserves improved to $24.7 million, bolstered by the Nasdaq IPO proceeds. Almonty expects its current financial resources to sustain operations for at least 15 months, but acknowledges the need for continued capital access to fund development and working capital requirements.
Almonty also completed a 1.5-to-1 share consolidation in July 2025, streamlining its capital structure ahead of the Nasdaq listing. The company’s governance was strengthened with the appointment of Alan Estevez, a former U.S. Under Secretary of Commerce for Industry and Security, to its board, signaling a focus on navigating the complex regulatory and geopolitical landscape surrounding critical minerals.
Risks and Outlook
The company’s MD&A outlines a comprehensive risk profile, including commodity price volatility, operational risks at the Sangdong mine and the tungsten oxide facility, geopolitical uncertainties; particularly in Korea; and liquidity constraints. Almonty is actively enhancing its internal controls and governance frameworks to address past disclosure weaknesses and prepare for its expanded public company responsibilities.
Looking ahead, the successful ramp-up of Sangdong production and the development of the tungsten oxide processing plant will be critical milestones. These projects aim to position Almonty as a key non-Chinese supplier in the global tungsten market, which remains highly concentrated and strategically important. Investors will be watching closely for operational execution, market demand trends, and the company’s ability to manage its debt and capital needs.
Bottom Line?
Almonty’s next chapter hinges on Sangdong’s production ramp-up and the tungsten oxide facility’s progress amid financial and operational headwinds.
Questions in the middle?
- How will Almonty manage its substantial long-term debt alongside capital needs for growth projects?
- What are the prospects and timelines for the tungsten oxide facility’s financing and construction?
- How resilient is Almonty’s revenue base amid Panasqueira’s production declines and tungsten price volatility?