Almonty’s Sangdong Ramp-Up and Strategic U.S. Acquisition Set Stage for Tungsten Supply Shift

Major Operational Milestone: Sangdong Construction Substantially Complete, Commissioning Near

The third quarter of 2025 was pivotal for Almonty Industries as it transitioned from development to ramp-up at its flagship Sangdong Mine in South Korea. Construction is now substantially finished, with ramp-up activities well underway, setting the stage for final commissioning and full-scale production. The Sangdong Mine is projected to soon become the largest tungsten mine in the Western world, capable of supplying over 80% of global non-China tungsten output once at capacity.

Adding to this momentum, Almonty secured a strategic tungsten project in Beaverhead County, Montana. The US$10 million acquisition is positioned for near-term production by the second half of 2026—reinforcing Almonty’s expansion in response to surging Western demand for critical minerals outside Chinese control.

Financials Reflect Strategic Repositioning and Non-Cash Warrant Gain

Almonty’s third quarter results featured headline figures influenced by a one-time, non-cash accounting gain. Net income for the quarter reached $33.2 million, reversing a loss in the prior year, chiefly due to a $34.5 million gain on the revaluation of warrant liabilities. This resulted from re-denominating certain Australian-dollar CDI options to Canadian dollars—removing future foreign exchange volatility and simplifying the company’s capital structure.

Excluding this technical accounting effect, the results aligned with the ongoing transition phase from development to commissioning. Revenue climbed 28% to $8.7 million, thanks to rising tungsten prices and continued steady production from Almonty’s Panasqueira Mine in Portugal. However, general and administrative expenses rose sharply, primarily linked to regulatory and corporate activities surrounding the Nasdaq uplisting and associated events.

One-Time Gains Dominate Income—Adjusted EBITDA Remains Negative During Ramp-Up

The headline profit stemmed almost entirely from the accounting gain tied to warrant liabilities. When excluding this effect and adjusting for other non-operational items, Almonty’s Adjusted EBITDA stood at negative $2.2 million, compared to negative $0.6 million in the prior-year period—highlighting the ongoing impact of ramp-up costs and transitional overhead as the company moves to commercial output.

Cash reserves surged to $111.6 million after a successful Nasdaq listing and related U.S. equity raise, offering financial stability for ongoing project development and potential expansion.

Outlook: Positioned as a Key Western Tungsten Supplier

Almonty’s management signaled strong positioning to benefit from geopolitical realignment in the critical minerals market. As the company commissions Sangdong and integrates the U.S. asset, its supply footprint now addresses a core vulnerability for Western governments and industries increasingly restricted from Chinese tungsten exports.

With high cash reserves and critical infrastructure investments now largely complete, the company is focused on operational ramp-up, cost discipline, and further partnership opportunities. Its portfolio, spanning Korea, Portugal, Spain, and now the U.S., is set to play a pivotal role in shaping future tungsten trade and allied supply chain security.

Takeaway: Transitional Costs and One-Time Gains Cloud Core Operating Trends

For investors, Almonty’s current numbers are dominated by transitional dynamics—namely, ramp-up costs at Sangdong, temporary administrative spikes, and a large non-cash gain from capital structure optimization. Looking past the accounting noise, Almonty stands at the cusp of entering sustained commercial production as a major Western tungsten supplier, with ample liquidity and clear demand tailwinds as strategic tensions drive up tungsten’s importance to the defense and technology sectors. Investors should monitor Sangdong’s commissioning timeline and the company’s next financial reports for clearer insight into normalized operating trends as the ramp-up matures.

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