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Almonty Industries Inc T.AII

Alternate Symbol(s):  ALMTF

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.


TSX:AII - Post by User

Comment by blueskieson May 11, 2022 10:55pm
211 Views
Post# 34676526

RE:RE:RE:RE:News release

RE:RE:RE:RE:News release It is good to receive a formal project update; however, I am dissapointed with this news release for a number of reasons:

On February 7, 2022, Almonty announced it had completed the conditions precedent. This news release suggests the final one was just completed.

As recently as March, Lewis said Almonty could draw down funds at any time but were waiting until it was required. This doesn't seem entirely accurate because the project update suggests they were also waiting on another condition precedent.

On February 22, 2022 Lewis presented the project outlook showing mining activities would start Q4 2022. This news release changes that date to mid-2023, this is a reasonably short delay; however, given all of the other delays with financing it is dissappointing.

I can't recall which speaking engagement between February and now; but I believe Lewis forwarned of a delay but at the time said construction should be done be end of 2022 or start of 2023, Q3 is not the start of 2023.

I also note that Almonty's presentation currenly available on their site still shows mining activities starting Q1 2022, not a big deal for those who know the stock well but for anyone who may be interested in starting a position in Almonty this really should be updated. It is also an annoying reminder of what the timeline was in August 2021.

On March 30th, Lewis said the long lead time mills are in the EU and would be shipped in April to South Korea with a scheduled arrivale time of May 2022. The new release is saying another two months. Again, not a huge delay but given the history of delays dissappointing.

Almonty is a major holding for me, I have not sold any shares, and don't plan to just because of another short delay but I am frustrated. I had expected Almonty's share price to rise once the drawdown was complete, I expected the rise to occur from a starting point of $1.00 cdn (definitely incorrect on the starting point given the recent share price weakness). Hopefully I am correct that the drawdown in 10 ish days will inspire some investment by new retail investors and even more so funds.

I think that cnce the drawdown occurs this becomes a project analysts will be more willing to put a value on, with the offtake agreements Almonty has and the access to $75 million USD to build, I think it should finaly be time for a "re-rate" on Almonty's shares and then a gradual increase in share price on top of the "re-rate" that goes up as we near production.

Thoughts from anyone else?


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