News Financialhttps://news.financial/comments/morphosys-on-the-verge-of-a-short-squeeze-evotec-share-drops-like-a-stone-almonty-industries-is-exciting ALMONTY INDUSTRIES: INVESTORS RECOGNIZE OPPORTUNITY
We had already pointed out in December that the stock of Almonty Industries could see a breakthrough in 2024. And the start of the year has been successful. In a relatively weak environment overall, the tungsten producer's shares have already gained over 10% this year and are trading at CAD 0.62. The Canadian raw materials company with activities in Spain, Portugal and South Korea thus appears to have bottomed out and is now on an upward trend. There is a resistance zone between CAD 0.60 and CAD 0.67. If the breakout succeeds, it will be really exciting, as the share was already at CAD 0.86 at the beginning of 2023 and above CAD 1 in 2022. The analysts at the German Sphene Capital believe that the Almonty Industries share price could even reach CAD 1.69.
The rise in stock price indicates that the Almonty story is gaining momentum. The tungsten producer is likely facing a pivotal year. In 2023, the Los Santos Mine in Spain underwent maintenance and was back in operation by the end of the year. Sphene analysts believe the mine will generate annual sales of over CAD 20 million. Almonty is currently working on expanding the Panasqueira mine in Portugal, aiming to double the annual tungsten oxide production of the Company's current cash cow and extend its service life. And then, of course, there is the Sangdong project. The mine in South Korea is to be commissioned this year, potentially becoming a game changer and positioning Almonty as a leading global producer of the critical metal tungsten. The development is co-financed by the German KfW. Of the committed loan volume of USD 75.1 million, USD 53.9 million has already been disbursed in several tranches. Thanks to these three cornerstones, analysts at Sphene Capital expect Almonty to be able to increase its turnover and profits to a new league. Sales are expected to more than triple from CAD 28.9 million last year to around CAD 100 million by 2025. In the coming year, Almonty should then be able to generate an after-tax profit of CAD 24.5 million - and the trend will continue upwards. At the current share price, the Company is valued at around CAD 145 million, suggesting that the share may have further room for growth.