Link to the research report https://www.more-ir.de/d/25941.pdf ALMONTY BEFORE REVALUATION: OVER 100% PRICE POTENTIAL
Sphene Capital initiated coverage of Almonty Industries with a Buy rating and a price target of CAD 1.67. Currently, the stock is trading at CAD 0.67. The German research house believes that the tungsten producer is facing a re-rating due to the ongoing expansion of its own value creation through the construction of a vertically integrated nano-tungsten oxide processing plant to supply South Korea's battery anode and cathode industry. Almonty's shares are valued at less than 1.8 times sales and less than 5.5 times EBIT for 2024. According to the analysts, this is too low. Analysts expect Almonty to generate revenue of about CAD 104 million and an EBIT of CAD 35 million in 2024. Earnings per share are expected to be CAD 0.12 in 2024.
Almonty Industries is a Canadian-based mining, exploration and
development company that holds a portfolio of four high-grade
tungsten projects in stable Tier 1 countries in South Korea and the
Iberian Peninsula. The group's flagship tungsten deposit is Almonty
Korea Tungsten. It is scheduled to come on stream in 2023 and is expected to be the largest tungsten mine outside China. A supply contract has already been signed with the Plansee industrial group. At a minimum price of USD 235 per MTU, Almonty could generate an operating cash flow of at least USD 580 million with Plansee alone within the minimum term of 15 years. The agreement covers about 50% of the expected production. It should be possible to sell the remaining volumes, as South Korea is the largest per capita consumer of tungsten, and tungsten is in demand worldwide - e.g. for photovoltaic and battery manufacturing. Download the full study for free.