Almonty Industries Inc T.AII

Alternate Symbol(s): ALMTF

Metals & Mining Industrial Metals & Minerals

Almonty Industries Inc. is a Canada-based company, which is engaged in the mining, processing and shipping of tungsten concentrate, as well as the exploration and evaluation of its projects. The Company operates through four segments: Los Santos Mine, Panasquiera Mine, Valtreixal Project, and Woulfe. The Los Santos Mine is located in Spain whose operations relate to the exploration and mining of Tungsten. The Panasqueira Mine is located in Covilha Castelo Branco, Portugal, whose operations relate to the exploration and mining of tungsten, as well as the production of copper and tin concentrate by-products. The Valtreixal Project is located in Spain whose operations relate to the exploration and evaluation activities of the Valtreixal tin/tungsten project. Woulfe’s properties are located in Gangwon Province, Republic of Korea. The Woulfe's operations relate primarily to the exploration, evaluation and development of the Sangdong Project.

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Almonty Industries Inc

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Post by chrisp6712on Sep 02, 2019 6:59am

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Local Almonty article

https://almonty.com/return-of-tungsten-mine-to-korean-stock-market/

Article written by Go-Eun Lee – Korea Economic Daily (29 August 2019)
Article: https://www.hankyung.com/finance/article/2019082974881

Almonty Industries Inc. (TSX:AII) (“Almonty” or “the Company”), a tungsten mine development and operation company listed on the Toronto Stock Exchange, is pursuing IPO in South Korea.

According to the investment banking market sources on August 29, Almonty has executed an engagement agreement with KB Securities (“KB”), for the lead management of the IPO of Almonty on the KOSDAQ section of the Korean Exchange (the “KRX”) and will proceed with the formal process of listing application preparation. It is the Company’s goal to complete the secondary listing on the KOSDAQ next year. If the application and listing go forward as planned, Almonty will be the first case of Canadian company listed on KRX. Korea Tungsten - Sangdong

Almonty’s Korean Representative, Mr. Tiger Yongwoo Kim stated the reason for the application of the KOSDAQ listing: “Almonty believes that Sangdong Mine will become the major growth engine of Almonty Group” Almonty owns the mining right of Sangdong Mine in addition to its operating tungsten mines in Spain and Portugal.

The market is paying attention to Almonty’s Korean listing as the Sangdong Mine has special meaning to the Korean capital market.

The History of Sangdong Tungsten Mine

Year	Event
1916	Tungsten discovered in Sangdong, Yeongwol County, Gangwon Province, Mining started by Japanese.
1952	Korea Tungsten was established as a state-owned corporation. Full scale development of Sangdong Mine began.
1968	Co-founder of POSCO with Government.
1992	Mine closed due to price collapse caused by Chinese volume supply.
1994	Korea Tungsten was acquired by Geopyeong Group. The first case of public company privatization in Korea.
1999	Delisting of Korea Tungsten on KRX.
2015	Mining right acquired by Almonty.
2019	Pursuit of Sangdong Mine redevelopment and listing of Almonty on KRX.

The history of Sangdong Mine goes back one hundred years to the period of Japanese occupation. Tungsten ore was found in 1916 and Japanese exploited tungsten enabling Japan to wage the World War ll based on the Sangdong tungsten. After the Korean War, Korea Tungsten had made great contribution to the economic development of Korea. Tungsten produced in Korea accounted for 17-19% of global production and over a half of the national export between 50s and 70s.

At that time, Korea Tungsten, a state owned company and operator of the Sangdong Mine was one of representative blue-chip companies on the Korea Stock Exchange. The company had strong financials as seen in its participation in the foundation of Pohang Iron & Steel (POSCO).

The Mine faced crisis in 1990s when the tungsten price declined sharply due to the Chinese tungsten flooding the market. Sangdong Mine had to suspend the mine operation in 1992. Korea Tungsten was sold to Geopyeong Group in 1994 to become the first case of public company privatization in Korea, then went through the process of delisting.

The back-end tungsten processing of Korea Tungsten continued by TaeguTec. After rounds of changing hands, the mining right of Sangdong was acquired by Almonty in 2015.

Mr. Tiger Yongwoo Kim said:

“Tungsten is a critical material used in key industries such as semiconductors, display units like LCD/LED, robots and aerospace. It is a scarcity metal along with rare earth elements of China, getting particular attention in the recently intensifying US-China trade war”.

He added,

“It is expected that China, the largest tungsten producer, is going to focus on meeting its own domestic demand so the value of the Sangdong tungsten will be spotlighted”.

The investment banking market sources commented that the reappearance and success of Sangdong Mine in the Korean Stock Market through the listing of Almonty will largely depends on the ‘economic feasibility of tungsten deposit in Sangdong Mine, the minable resource quantity and the prospect of tungsten price’.

Article written by Go-Eun Lee – Korea Economic Daily (29 August 2019)
Article: https://www.hankyung.com/finance/article/2019082974881