New York, NY, April 07, 2025 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has initiated coverage of Almonty Industries, Inc. (TSX: AII) (ASX: AII) (FWB: ALI) (OTCQX: ALMTF). The in-depth 49-page initiation report includes detailed information on the Almonty Industries’ business model, services, industry overview, financials, valuation, management profile, and risks.
The full research report is available below.
Almonty Industries Inc. Initiation of Coverage
Highlights from the report include:
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Sangdong Mine Potentially Set to Become the World’s Largest Non-Chinese Tungsten Source: Almonty’s flagship Sangdong Mine in South Korea is poised to transform the global tungsten landscape, with projected output exceeding 40% of non-China supply and 5% of global supply by 2027. In our view, Sangdong is not just Almonty’s crown jewel, but also a cornerstone asset for rebuilding Western tungsten supply chains, given its expected 90+ year mine life and strong by-product upside potential from molybdenum.
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High-Grade Molybdenum Asset Adds Material Upside from Late 2026: Located just below Sangdong’s skarn horizons, the AKM Molybdenum Project adds meaningful diversification. The project has a maiden inferred resource of 21.5 Mt @ 0.26% MoS₂ and is fully permitted within the existing Sangdong mining lease. A $19/lb floor-price offtake agreement with SeAH M&S de-risks the development and ensures predictable cash flows. Production is targeted for late 2026/early 2027, with an anticipated 60-year mine life based on historical government data.
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Strong and Visible Cash Flow Backed by Long-Term Contracts: Almonty has secured a 15-year offtake agreement with a floor price of US$235 per MTU, equating to approximately US$580 million in guaranteed revenue over the contract life. This agreement, with no price cap, provides exceptional cash flow visibility and allows Almonty to benefit fully from market upside. The contract emphasizes the credibility of Sangdong as a reliable source of high-grade tungsten and reflects deep buyer confidence in Almonty’s long-term delivery capabilities and quality of asset.
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Resilient Tungsten and Molybdenum Outlook Driven by Structural Supply Shortages and Rising Strategic Demand: Tungsten and molybdenum markets are experiencing sustained upward pricing pressure due to structural supply constraints, geopolitical export restrictions, and robust industrial demand. Tungsten prices have rebounded strongly, with APT reaching near-decade highs. Similarly, molybdenum prices surged to historical peaks ($40/lb in early 2023) due to critically low global inventories and supply disruptions. Given limited substitution possibilities, rising applications in defense, aerospace, infrastructure, and clean energy technologies, we believe these market dynamics could support elevated tungsten and molybdenum prices, benefiting producers like Almonty.
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Critical Material Status, Export Bans, and NATO Mandates Drive Demand Shift: Tungsten has been designated a critical raw material by the U.S., EU, Australia, Canada, and South Korea due to its high economic importance and supply risk. The U.S. Department of Defense will ban Chinese, Russian, North Korean, and Iranian tungsten for military procurement starting in 2027, while the EU has extended anti-dumping tariffs on Chinese tungsten carbide. Almonty’s Portuguese material is already commanding premiums of over 15% as Western buyers prioritize ESG-aligned sources. China's own export controls on tungsten and molybdenum, effective February 2025, further restrict global access. In our view, these developments create a powerful structural tailwind for Western-aligned producers like Almonty.
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Proven Operational Track Record and Industry Trust Anchor the Business Model: Almonty has a 128-year history in tungsten mining and previously sold operations for 21x earnings during the 2007 supply squeeze. Its Panasqueira Mine in Portugal has been producing for over a century, while the Los Santos Mine is scheduled to restart in 2026. Management has consistently met all development milestones, raised AUD 18.45 million in 2024, and continues to co-invest alongside shareholders. We view this track record as a major differentiator, supporting the company’s ability to win contracts, secure financing, and execute on scale.
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Valuation: Almonty Inc. presents a unique investment opportunity, offering exposure to a portfolio of high-grade tungsten and molybdenum assets with clear near-term production visibility. Key upcoming milestones, including the commencement of production at the Sangdong tungsten and molybdenum projects, downstream processing initiatives, and the Panasqueira expansion opportunity, are expected to potentially drive meaningful growth in revenues and profitability. Furthermore, the company operates in a low-risk, transparent jurisdiction and has secured long-term offtake agreements with global partners, providing additional stability and cash flow visibility. We have applied a Net Present Value (NPV) valuation using a Discounted Cash Flow (DCF) approach, incorporating expected production volumes, life-of-mine estimates, throughput capacities, ore grades, recovery rates, and commodity price forecasts. Using an 8% discount rate, we arrive at a valuation of C$4.00 per share, contingent on successful execution by the company.
About Almonty Industries, Inc.
Almonty Industries Inc. is a global leader in tungsten mining, with strategically positioned assets in geopolitically stable regions including South Korea, Portugal, and Spain. The company is set to become the largest tungsten producer outside China upon the commissioning of its flagship Sangdong Mine.
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by Almonty Industries, Inc. for producing research materials regarding Almonty Industries, Inc. and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for research engagement. As of 04/07/25 the issuer had paid us $50,000 for our company sponsored research services, which commenced 03/07/2025 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 04/07/2025. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities, including the complete loss of their investment. This report does not explicitly or implicitly affirm that the information contained within this document is accurate and/or comprehensive, and as such should not be relied on in such a capacity. All information contained within this report is subject to change without any formal or other notice provided. Investors can find various risk factors in the initiation report and in the respective financial filings for Almonty Industries, Inc. Please review initiation report attached for full disclosure page.
Contact:
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