Almonty Industries’ Q1 Revenue Surges 221 Percent on Tungsten Price Spike

Revenue Surge Fueled by Tungsten Price Rally and Panasqueira Output

Almonty Industries Inc. (ASX:AII) delivered a striking financial turnaround in the first quarter of 2026, with revenues soaring 221% year-on-year to CAD 25.4 million. This leap was primarily driven by a dramatic surge in the spot price of tungsten ammonium paratungstate (APT), which climbed from US$330 per MTU in January 2025 to nearly US$3,140 per MTU by May 2026, alongside robust performance at the Panasqueira Mine in Portugal. Despite a 14.7% drop in ore production at Panasqueira compared to Q1 2025, the company’s revenue more than tripled, underscoring the outsized impact of tungsten price dynamics on its top line.

The Panasqueira Mine’s shipments fell 15.5% year-on-year, yet the revenue spike reflects the market’s tightening supply and critical demand for tungsten, a metal pivotal to defense and advanced technology sectors. Almonty prices its concentrate based on the prior month’s average APT prices in Europe, which have trended sharply upwards amid export restrictions from China and increased NATO military spending. The company’s strategic positioning to supply Western industrial and defense supply chains is becoming increasingly relevant in this geopolitical climate.

Sangdong Mine Phase I Commissioning Marks a Milestone

March 2026 saw the formal commissioning ceremony of Almonty’s flagship Sangdong Mine in South Korea, a project heralded as one of the world’s largest and highest-grade tungsten deposits. Commercial mining commenced in December 2025, with Phase I ramp-up underway targeting an ore throughput capacity of 640,000 tonnes per year. Plans for a Phase II expansion, potentially doubling capacity to 1.2 million tonnes, are fully permitted and could be completed in 2027 pending positive operational results and market conditions. This development is a critical step in diversifying global tungsten supply away from China’s dominance, a theme highlighted in the company’s recent strategic moves including the relocation of its corporate headquarters to Dillon, Montana, aligning closer with U.S. defense and industrial stakeholders.

Almonty’s move to the U.S. also brings it geographically closer to its newly acquired Gentung Tungsten Project in Montana, which is among the most advanced undeveloped tungsten assets in the country. The acquisition, completed in November 2025, was accounted for as an asset acquisition and included a plant permit, water rights, and mining equipment, positioning Almonty for near-term production ramp-up in the U.S. market.

Financial Performance Reflects Operational Leverage and Non-Cash Accounting Effects

The company posted a net loss of CAD 5.3 million for Q1 2026, a significant improvement from the CAD 34.6 million loss a year earlier. This narrowing was largely due to the absence of a massive CAD 25.8 million non-cash loss on the revaluation of warrant liabilities recorded in Q1 2025 and the boost from higher mining income, which rose to CAD 13 million from just CAD 752,000. Adjusted EBITDA swung positive to CAD 6.1 million from a negative CAD 2.4 million, illustrating the operational leverage Almonty enjoys as tungsten prices strengthen.

However, the quarter included CAD 8.4 million in non-cash revaluation charges related to embedded derivative and warrant liabilities, driven by the share price appreciation from CAD 12.07 to CAD 20.24. These accounting charges, while impacting reported net income, did not affect the company’s cash flow or liquidity, which remained robust with CAD 259.9 million in cash and a working capital position of CAD 169.5 million as of March 31, 2026.

Mine production costs nearly doubled to CAD 11.8 million from CAD 6.6 million, reflecting increased mining and processing expenses, including higher selling costs associated with increased shipment volumes. General and administrative expenses also doubled to CAD 7.1 million, largely due to expanded management and corporate overheads as Almonty scales its operations and complies with multi-jurisdictional public company requirements.

Capital Structure Strengthened by Recent Equity Raises and Debt Management

Almonty successfully raised over US$200 million in 2025 through its Nasdaq IPO and a subsequent equity offering, with net proceeds allocated primarily toward the development of the Tungsten Oxide Facility, the Sangdong Molybdenum Project, and the Gentung Tungsten Project, as well as working capital. Notably, the company has yet to deploy significant capital on the Tungsten Oxide Facility, which remains in the pre-construction phase but aims to supply South Korea’s battery anode and cathode manufacturing industry, potentially reducing processing costs by localising tungsten oxide processing.

Long-term debt stood at CAD 177.4 million, with CAD 56.9 million due within the next year, including term loans denominated in Euros and U.S. dollars, promissory notes to Deutsche Rohstoff AG (a major shareholder), and convertible debentures. The company remains compliant with all debt covenants. The KfW Bank loan facility, used to finance Sangdong’s construction, has been fully drawn with scheduled repayments commencing post ramp-up.

Equity capital increased to CAD 638.6 million with 282.8 million shares outstanding post the 1.5-for-1 share consolidation effected in July 2025. The company continues to issue shares from warrant and option exercises, with proceeds of nearly CAD 5 million received in Q1 2026 and further issuances post-quarter.

Operational and Regulatory Risks Remain Amid Growth and Market Uncertainties

Almonty acknowledges ongoing risks including the inherent volatility of tungsten prices, foreign exchange fluctuations across its multi-jurisdictional operations, and the challenges of scaling production at Sangdong and other projects. The company is actively addressing internal control weaknesses identified in financial reporting, with remediation efforts underway and expected to complete in Q2 2026.

Environmental restoration provisions total CAD 22.7 million, reflecting obligations at Panasqueira, Sangdong, Los Santos, and Gentung sites. The company is awaiting final approvals for some restoration plans, particularly in Spain. Legal and regulatory compliance across Korea, Portugal, Spain, and the U.S. remains a focus, with the company maintaining local legal counsel and governance structures to navigate diverse jurisdictions.

Almonty’s strategic expansion and operational progress position it as a key Western-aligned tungsten producer amid tightening global supply chains, as highlighted by its recent Nasdaq IPO and equity raise and Phase 1 commissioning at Sangdong. The company’s ability to execute Phase II expansion and advance downstream processing at the Tungsten Oxide Facility will be critical milestones to watch.