ALMONTY INDUSTRIES: TUNGSTEN PRODUCER STEPS UP ALMONTY INDUSTRIES: TUNGSTEN PRODUCER STEPS UP - E-CARS AND DEFENSE IN ITS SIGHTS
In contrast, the share of Almonty Industries promises an investment at the beginning of critical value chains for automotive and other future industries. The Canadian company has been mining tungsten for years and offers projects in Portugal and Spain. Among miners, tungsten is considered challenging - without professionals, from engineers to laborers - many projects are not profitable. So far, the tungsten market has been dominated by China. However, Almonty Industries is currently completing a project to break China's dominance with its Sangdong mine in South Korea. The mine could soon become the largest tungsten project outside of China, accounting for about 30% of the tungsten market outside of China alone. Tungsten can replace cobalt in batteries for e-cars and offers advantages in terms of charging performance and safety. Further, tungsten is used in the ammunition for HIMARS multiple rocket launchers and the M1 Abrams and Leopard 2 tanks.
The Sangdong project is currently in the final stages of completion. The associated investments have recently also weighed on Almonty's earnings. The analysts at Sphene Capital nevertheless saw a price target of CAD 1.59 in mid-August and pointed out that the currently paused project in Spain is also expected to go back into production in the course of the year. The current price of EUR 0.33 offers great potential measured against the fair value calculated by analysts but also reflects risks. After months of sell-off, experienced investors may still want to take a closer look at the value. Almonty Industries is an exciting asset at the beginning of many value chains.