Almonty Industries Delivers 221% Revenue Growth and Positive Cash Flow Amidst Strong Tungsten Demand

Record Revenue and Marked Operational Shift

Almonty Industries (NASDAQ: ALM) kicked off 2026 with a dramatic change in financial trajectory, posting a 221% increase in revenue to $25.4 million for the first quarter, driven by robust demand for tungsten and record spot prices. This sharp uptick reflects not only favorable commodity market conditions but also operational milestones, most notably the formal commissioning of the Sangdong Mine in Korea—now positioning Almonty as a core contributor to Western tungsten supply chains.

Cash Flow Turns Positive, Backed by Strong Working Capital

The company reported a substantial leap in operating cash flow, generating $9.7 million versus a negative $4.4 million in the same quarter of 2025. Cash reserves totaled $259.9 million as of March 31, 2026, providing significant financial leeway. Working capital stood at $169.5 million, giving Almonty ample room to drive its growth pipeline, including advancing the Sangdong and Gentung projects.

Operational Performance Drives Adjusted EBITDA Upswing

Adjusted EBITDA reached $6.13 million, recovering dramatically from negative $2.37 million a year earlier, as detailed in management's reconciliation table below. Although the company posted a net loss of $5.26 million, this was sharply reduced from the $34.62 million loss in Q1 2025 and was impacted by $8.41 million in non-cash revaluation charges linked to the rising share price and IFRS fair value accounting requirements—charges that did not affect cash or core operations.

Non-Cash Charges Impact Net Results, But Not Operations

This quarter’s net loss included $6.39 million in non-cash losses related to embedded derivative liabilities and $2.02 million in warrant revaluations, reflecting both the jump in Almonty’s share price (from $12.07 to $20.24) and volatility assumptions. By eliminating these accounting items, Almonty demonstrates an underlying operational momentum now turning positive, with these charges having no effect on the company’s liquidity or daily operations.

Sangdong Commissioning and U.S. Relocation Signal Strategic Intent

March 2026 saw the commissioning of Sangdong Mine, one of the world’s largest and highest-grade tungsten deposits. The subsequent decision to move corporate headquarters from Toronto to Dillon, Montana, brings Almonty closer to key U.S. government, defense, and industrial partners—aligning with Western policy goals for critical mineral supply security amid tightening restrictions on Chinese exports.

Management Sees Foundation for Long-Term, High-Margin Growth

Management emphasizes a pivotal transformation: positive operating leverage as tungsten prices rise, the successful ramp at Sangdong, and ample working capital. As Sangdong targets full commercial throughput and new U.S./Spain projects advance, Almonty aims to anchor a resilient Western tungsten supply chain—addressing what it sees as critical mineral vulnerabilities for the industrial and defense sectors.

Key Takeaway for Investors

Almonty’s Q1 2026 marks a fundamental inflection point: the company is moving beyond previous net losses to positive cash flow and EBITDA, buoyed by record tungsten pricing, strong operational delivery, and a clear place in the Western strategy to source critical minerals. While risks remain from commodity price swings and ongoing project execution, Almonty’s financial flexibility and strategic positioning may offer an intriguing case to watch for those tracking the evolution of global supply chains and resource security.

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