ALMONTY INDUSTRIES: JUMP IN SALES AND PROFITS FROM 2024 ALMONTY INDUSTRIES: JUMP IN SALES AND PROFITS FROM 2024
"Once the downstream plant is running at 100% utilization from 2026, we could provide up to 30% of non-Chinese tungsten supply," Almonty CEO Lewis Black said at an investor conference in May this year. Almonty aims to start making money as early as 2024 when it ramps up its Sangdong mine in South Korea. In addition, the Company already operates three smaller mines on the Iberian Peninsula. However, the focus is clearly on the Sangdong development. Analysts at Sphene Capital expect Almonty to generate an EBITDA of CAD 23.2 million and a net income of CAD 8 million as early as next year. In 2025, profits are expected to increase, climbing to CAD 47.7 million (EBITDA) and CAD 26.2 million (net income).
Almonty is currently valued on the stock market at only CAD 140 million. Given the expected earnings, this is too little. Planning security is provided by the 15-year offtake agreement already in place with the Austrian raw materials conglomerate Plansee. The Austrians are one of the world's leading tungsten suppliers, with around 11,000 employees and production sites in around 50 countries. The terms for Almonty are very attractive: the minimum purchase price is USD 235 per metric ton unit (MTU). The agreement covers around 50% of production, and the remainder can be sold on the market at spot prices. Almonty should not be worried about sales issues, mainly because the mine is located in South Korea, a country with the highest global demand for tungsten.
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