SOON TO BE THE MOST IMPORTANT TUNGSTEN PRODUCR OUTSIDE CHINA ALMONTY: SOON TO BE THE MOST IMPORTANT TUNGSTEN PRODUCER OUTSIDE CHINA?
Tungsten receives little attention, but it is all the more important. In the past few months alone, the price has risen by over 50%. The metal is as heavy as gold, as hard as diamond and more heat resistant than iron. So it is no surprise that tungsten is essential to today's high-tech industry: from power and lighting to aerospace, telecommunications and medical technology - they all need the rare commodity. Almonty Industries (ISIN: CA0203981034) supplies it. The Canadian-based Company specializes in mining, processing and shipping tungsten concentrate. Currently, it comes from two mines in Portugal and Spain. In addition, Almonty is investing heavily in the development of new mines. These are located in Sangdong in South Korea and Valtreixal in the northwest of Spain.
Production at the Sangdong mine is scheduled to start as early as mid-2022, and so far, the Company says it is on schedule. It was integrated into the Almonty Group in September 2015 by acquiring a 100% interest in Woulfe Mining Corp. Almonty has since secured the funding necessary for the final development. In addition to issuing new shares and placing a loan, a supply agreement has been concluded with the Austrian Plansee Group. Plansee is now one of the Company's major shareholders alongside Deutsche Rohstoff AG, which holds 12.2% of Almonty Industries.
Important for investors: The project in Sangdong is expected to be the largest tungsten mine outside China. With around 85% of global tungsten production currently coming from China, Almonty will likely account for about 30% of non-Chinese tungsten production in a few years. That gives Almonty strategic importance and makes the Company a takeover candidate. Therefore, the consolidation of the share could soon be over.
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