ON THE WAY TO BECOMING A SIGNIFICANT TUNGSTEN PRODUCER Almonty focuses its business on tungsten, which belongs to the group of strategic metals. Tungsten has an extremely high thermal toughness and density. It has the highest melting point of all metals, as well as the most remarkable mechanical strength. Tungsten is often used as an alloy.
Currently, Almonty's activities are predominantly in Europe with mining, processing and shipping of tungsten concentrate from its Los Santos mine in western Spain and its Panasqueira mine in Portugal. In addition, the Company is developing the tin and tungsten project at Valtreixal, in northwestern Spain.
However, central to Almonty's growth is the development of the Sangdong tungsten mine in Gangwon Province, South Korea. Here, the foundation was laid in December to provide financing to become the largest tungsten producer outside China. In the future, it aims to meet around 30% of demand outside China and approximately 7% to 10% of global demand. Plans call for ramping up production starting in 2021. The mine is expected to have an operating life of 30 years or more.
Given rising tungsten prices, extremely favourable financing, low-cost structure and long mine life, analysts at First Berlin confirm their buy recommendation with a price target of CAD 1.45. The share can thus easily double. Given the current market capitalization of around CAD 120 million, the potential of such a large mine of a critical commodity is still far from being priced in.
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