Almonty Turns Cash Flow Positive as Sangdong Mine Ramps Up Production

The tungsten developer Almonty Industries has crossed a critical financial threshold. For the first quarter of 2026, the company generated $9.7 million in operating cash flow, a sharp reversal from the $4.4 million burn recorded in the same period last year. The turnaround is directly linked to the formal commissioning of the Sangdong mine in South Korea on March 17.

Revenue hit a record $25.4 million for the quarter, fueled by higher tungsten prices and rising output from the Panasqueira mine in Portugal alongside initial contributions from Sangdong. Adjusted EBITDA swung to $6.1 million, compared with a loss of $2.4 million a year earlier. That metric strips out the non-cash charges that complicated the bottom line.

Almonty reported a net loss of $5.3 million, a steep improvement from the $34.6 million loss in the prior-year quarter. The red ink stems largely from $8.4 million in non-cash revaluation charges — $6.4 million on embedded derivative liabilities and $2.0 million on warrant liabilities — triggered by the stock’s climb from $12.07 at the end of 2024 to $20.24 by quarter-end. Under IFRS, a rising share price forces higher valuations on convertible instruments, creating a paper hit that costs no cash.

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The company is simultaneously reshaping its corporate footprint. Headquarters are moving from Toronto to Dillon, Montana, a location chosen to deepen ties with North American defense and industrial buyers. Tungsten is a critical input for armor and munitions, and securing non-Chinese supply chains is becoming a geopolitical priority. Effective June 1, Jorge Beristain steps in as chief financial officer to steer the next phase of commercial expansion.

Management’s balance sheet provides ample runway. Cash and equivalents stood at $259.9 million at quarter-end, with working capital of $169.5 million. CEO Lewis Black is set to present at the BofA Securities Global Metals, Mining & Steel Conference in Miami on May 13, followed by an appearance at the Critical Minerals Forum the next day.

The stock market has already priced in much of the optimism. In Toronto, shares closed at C$28.62, up 6.47% on the day, while the Australian listing hit A$28.51. Over twelve months, the gain amounts to roughly 590%. Texas Capital initiated coverage with a Buy rating and a $25 US target, citing further project milestones and sustained high tungsten prices as catalysts.

Sangdong remains the strategic centerpiece. At full capacity, the mine is expected to supply about 40% of the world’s tungsten output outside China. The financial test now is whether the positive operating cash flow and rising EBITDA can scale alongside production.

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