ALMONTY INDUSTRIES - EARNINGS GROW ALMOST 3-FOLD ALMONTY INDUSTRIES - EARNINGS GROW ALMOST 3-FOLD
Almonty Industries is a specialist in tungsten. The raw material is not only essential for light bulbs but also for cell phones, microchips, cars and the defense industry. The emerging applications in the field of rechargeable batteries, in particular, offer significant growth potential. Only the Panasqueira mine is currently in production. There was a boost in earnings here in the last quarter. Income from mining operations in the first two quarters amounted to CAD 320,000 and CAD 241,000, respectively. In the last quarter, the figure was CAD 943,000 and thus almost tripled. This resulted in a positive EBITDA of CAD 1.74 million in the first nine months. But this is just the beginning. The Company also owns one of the largest tungsten deposits outside China, the Sangdong Mine.
This deposit has the potential to make the Western states somewhat less dependent on China. The restructuring and diversification of supply chains for critical raw materials is in full swing. Once the mine in South Korea has reached its full production capacity, Almonty aims to provide around 15% of global supply. There is already a 15-year offtake agreement with Plansee/GTP, which pays a minimum price of USD 235, guaranteeing Almonty USD 580 million in revenue. If the market price exceeds USD 235, as it does today at over USD 300, that price is paid. The mine has a lifespan of more than 90 years, and an annual EBITDA of CAD 72 million is expected. The 12-month start-up phase is scheduled to begin in Q1 2025.
In addition to these two projects, which are being actively worked on, there are plans to reactivate the Los Santos mine in Spain using the flotation technology of the Sangdong mine. This would require the Company to invest around USD 1.3 million. The focus is currently on the development of Sangdong, but this plan should be implemented as soon as sufficient funds are available. Anyone wanting first-hand information should make a note of December 5. On this day, CEO Lewis Black will present Almonty at the 9th International Investment Forum. The share is currently trading at CAD 0.50, giving the Company a market capitalization of just CAD 114 million. Once the Sangdong Mine is operational, these valuations will likely change significantly.
Almonty Industries will pre