Overview
Almonty Industries (TSX:AII) is a leading player in the tungsten and molybdenum mining sector, with a primary focus on its Sangdong mine in South Korea.
Speaking to a packed crowed at the International Investment Forum, the company’s CEO, Lewis Black gave details on their flagship project, the Sangdong mine in South Korea, which was once the world’s largest tungsten mine. Almonty also operates the Panasqueira mine in Portugal and the Valtreixal project in Spain.
The ‘International Investment Forum’ offers insights into investment trends and strategies, featuring perspectives from top executives and managers across diverse industries worldwide.
You can see the entirety of his talk on YouTube here.
This mine, once the world’s largest tungsten mine, was closed in 1993 but has since been revitalized by Almonty. The company also operates one of Asia’s largest molybdenum mines, which is adjacent to the Sangdong tungsten mine.
Geopolitical influence and market position
Almonty’s share price has seen significant growth over the past 24 months, driven largely by geopolitical factors. AII’s stock value has increased nearly 194 per cent since March 2024. The company’s liquidity has also increased substantially, positioning it well ahead of its competitors in the tungsten sector. This growth is not solely due to recent geopolitical events but is the result of a long-term strategy and consistent performance.
Diverse shareholder base and financial strategy
Almonty boasts a diverse shareholder base, having resisted the temptation to rely on a single large investor. Instead, the company has maintained a broad base of long-standing shareholders, many of whom have seen their investments more than double since the company’s IPO. This approach has helped preserve shareholder value and maintain financial stability.
Key assets and projects
- The Almonty Korea Tungsten deposit (Sangdong Mine) (South Korea): The Sangdong mine is Almonty’s flagship project, with a significantly higher grade of tungsten compared to its other operations. The mine also includes a molybdenum deposit, adding to its importance and value.
- Panasqueira Mine (Portugal): This older mine continues to generate steady revenue, albeit modestly. It serves as a valuable knowledge base for Almonty’s operations.
- Valtreixal Project (Spain): Fully permitted but currently on hold due to environmental regulations in Spain. This project is ready to proceed once regulatory conditions improve.
- Los Santos Project (Spain): The Los Santos mine is prepared for reactivation, with the plant maintained and ready to resume operations once the Sangdong Project is fully operational.
Government support and strategic positioning
Almonty has received unprecedented support from multiple governments, including direct investments in land and infrastructure from the Korean government. This level of government involvement underscores the strategic importance of Almonty’s projects. The company has also secured a loan from the German State Bank, guaranteed by the Austrian finance ministry, highlighting the confidence in Almonty’s operations.
Almonty has received unprecedented support from multiple governments, including direct investments in land and infrastructure from the Korean government. This level of government involvement underscores the strategic importance of Almonty’s projects.
The company has also secured a loan from the German State Bank, guaranteed by the Austrian finance ministry, highlighting the confidence in Almonty’s operations.
Premium pricing and reliable products
Almonty stands out in the tungsten market by receiving premium prices for its products, a distinction not shared by its competitors. This is due to the reliability, consistency, and desirability of Almonty’s products. The company also secures floor prices on its larger contracts, protecting it from adverse price fluctuations.
Share price performance and market position
Almonty’s share price has shown strong performance, driven by more than just geopolitical factors. The company’s consistent focus on value and independence has attracted significant support from investors. Almonty is set to become the only U.S. company currently producing tungsten, further enhancing its market position.
Experienced management and long-term success
Almonty’s management team has decades of experience in operating tungsten mines, consistently turning around projects and generating profits. The company’s low turnover of senior and mid-level staff reflects a stable and committed workforce. Management’s direct investment in the company aligns their interests with those of the shareholders.
Future plans and projects
Almonty is in the process of redomiciling to the United States, a move expected to enhance its long-term competitiveness. The company plans to open phase one of the Sangdong project within the next two to three months, with phase two expected to be online within 12 months. This rapid expansion is facilitated by the groundwork already laid during the first phase.
Investor’s corner
Almonty Industries Inc. offers a compelling investment opportunity in the critical minerals sector. With strong government support, premium pricing, a proven track record, and ambitious future plans, Almonty is well-positioned to lead the tungsten and molybdenum markets.
“The molly has the potential to make a profound effect on the company. I’d like to describe it that phase one tungsten is ‘X Revenue’ phase two is 2X, the molly mine is 4X. It means that as a company, as a group, we can see a clear path to four times our revenue within assets that we currently own,” CEO Black said in the video.
Investors looking for a stable and growing company in this sector should consider Almonty as a valuable addition to their portfolios.
To keep up with the latest from the company, visit almonty.com.
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