ALMONTY INDUSTRIES: APPROX. 70% ALREADY FUNDED - WHEN WILL ? ALMONTY INDUSTRIES: APPROX. 70% ALREADY FUNDED - WHEN WILL THE MARKET PRICE OUT RISK?
Almonty Industries recognized years ago that critical raw materials will be the main factor in the transformations of the coming years. Tungsten, which can also play a role as a battery metal in addition to high-grade alloys and light bulbs, has so far come mainly from China. Almonty, which currently produces tungsten in Portugal, continuing a long tradition there, has developed a giant mine in the Sangdong project in South Korea that has what it takes to become one of the largest tungsten suppliers outside China. "June and July have been busy months at the Almonty Korea tungsten project, with the successful arrival of the protective screen and recovery feed following the arrival of the semi-autogenous grinding and ball mill in June," Almonty CEO Lewis Black said in an early August press release. "We are pleased to be able to access funds from our lending partner KfW as part of the project financing."
Almonty has secured USD 75 million in project financing with Kreditanstalt fr Wiederaufbau (KfW) 2021, which will cover approximately 70% of Sangdong's USD 105 million construction cost. Given the tight situation in the tungsten market and the market dominance of China, the chances are good that the project, which is already well-advanced, can be led to success.
The share of Almonty Industries was still quoted at around EUR 0.75 last year - currently, it is EUR 0.38. Especially during complex construction projects, such as the construction of the Sangdong mine, the markets price in risks. In addition, the market environment has been weak for several months. However, if the start of production is successful, the market usually prices out risks again quickly. Speculative investors can take advantage of precisely this development. Since tungsten can also play a role in batteries and replace the controversial cobalt, the metal, the extraction of which is complex and requires expertise, certainly exudes esprit.
When it comes to promising growth stocks, it is like climbing to the top of the Alps: only after the work is done do the rewards beckon. In the case of Almonty Industries, it currently seems as if not many investors have taken the trouble to thoroughly examine the Company's prospects - although the Company has long had its sights firmly set on the summit. While Varta faces big competition and Rock Tech Lithium needs to get its horsepower on the road first, Almonty Industries, valued at CAD 129 million, could be an insider's tip.
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