Almonty Industries has commenced commercial production at its flagship Sangdong Mine in South Korea and secured more than US$200 million through Nasdaq IPO and equity offerings to fund expansion projects. Despite rising revenues driven by soaring tungsten prices, the company reported a significant net loss due to non-cash derivative liabilities.
- Sangdong Mine begins commercial production in December 2025
- Nasdaq IPO and December equity raise total over US$200 million
- Revenue growth supported by sharp increase in tungsten prices
- Net loss widens to $161.9 million, largely from non-cash derivative revaluations
- Ongoing U.S. Domestication and new board appointments with U.S. defense expertise
Commercial Mining Milestone at Sangdong
Almonty Industries Inc. marked a pivotal moment in its corporate evolution with the commencement of commercial mining operations at its Sangdong tungsten mine in South Korea in December 2025. This milestone transitions the project from development to active production, with the processing plant currently in commissioning and targeting an initial throughput capacity of approximately 640,000 tonnes per year. Plans are already underway for a Phase II expansion, potentially doubling capacity by 2027, reflecting the company’s confidence in the mine’s long-term viability.
Robust Capital Raises Fuel Growth Ambitions
In 2025, Almonty successfully completed a Nasdaq initial public offering (IPO) raising US$90 million, followed by a December equity offering that brought in an additional US$129.4 million. These capital injections are earmarked primarily for the development of a new Tungsten Oxide Facility in South Korea, expansion of existing mines including Panasqueira in Portugal, and advancing the Sangdong Molybdenum Project and the Gentung Tungsten Project in the United States. Despite these ambitious plans, the company has yet to deploy these funds, indicating a measured approach to project execution.
Financial Performance: Revenue Growth Amidst Significant Losses
Almonty reported gross revenues of $32.5 million for the year ended December 31, 2025, up from $28.8 million in 2024, buoyed by a dramatic rise in tungsten prices. The average price of ammonium para tungstate (APT), a key tungsten intermediate, surged from US$330 per metric tonne unit (MTU) in early 2025 to over US$2,250 per MTU by March 2026, driven by geopolitical tensions and increased demand in defence and high-tech sectors.
However, the company recorded a net loss of $161.9 million for 2025, a sharp increase from a $16.3 million loss in 2024. This was primarily due to non-cash losses on the revaluation of embedded derivative liabilities and warrant liabilities, reflecting the volatility of the company’s convertible instruments amid rising share prices. Operationally, production at the Panasqueira Mine declined by around 10%, impacted by lower ore grades and fewer underground faces worked, although revenue from this asset still increased due to higher tungsten prices.
Strategic Moves and Governance Enhancements
Almonty is actively pursuing a U.S. Domestication to shift its jurisdiction of incorporation to Delaware, aligning with its strategic focus on the U.S. market and its regulatory environment for critical minerals. This move remains under shareholder and board consideration, with tax and other implications still being evaluated.
The company also strengthened its board with appointments of retired U.S. military leaders and former government officials, signalling a deepening engagement with U.S. defence sectors. This aligns with Almonty’s exclusive offtake agreement with SeAH M&S Corp., a major South Korean molybdenum processor expanding into U.S. defence supply chains.
Internal Controls and Risk Management
Despite operational progress, Almonty disclosed material weaknesses in its internal controls over financial reporting, citing deficiencies in segregation of duties and system data integrity. Management is undertaking remediation efforts, including expanding its finance team and engaging external advisors, with expectations to substantially complete improvements by mid-2026. Investors should monitor these developments closely as they bear on the reliability of financial disclosures.
Market Outlook and Industry Context
The tungsten market remains tight and strategically critical, with China controlling approximately 80% of global supply. Export restrictions and rising military expenditures among Western nations have driven prices sharply higher, benefiting producers like Almonty. However, the company cautions that price trends are volatile and subject to geopolitical and economic uncertainties.
Bottom Line?
Almonty’s transition to commercial production and significant capital raises position it for growth, but execution risks and financial reporting challenges remain key watchpoints.
Questions in the middle?
- Will Almonty proceed with its planned U.S. Domestication, and what are the tax implications?
- How quickly can the Sangdong Mine ramp up to full Phase I and Phase II production capacity?
- What progress will be made in remediating internal control weaknesses to restore investor confidence?