From Stockpile to Product: Almonty Begins Processing the Sangdong Ore Mountain
02.07.2026 - 11:04:57 | boerse-global.de
After months of preparation, Almonty Industries has switched on the processing plant at its Sangdong tungsten mine in South Korea, putting a roughly $68 million stockpile of ore to work. The transition from development to commercial production marks a critical inflection point for the company, which now aims to deliver revenue from the historically rich deposit.
The material had been accumulating steadily through the first half of 2026. By the end of the first quarter, roughly 120,000 tonnes of ore with an average tungsten oxide grade of 0.24% sat on site. A further 19,700 tonnes of development ore arrived in the second quarter, grading 0.35%, bringing the total inventory to about 139,700 tonnes with a blended grade of 0.25%. Management has assigned a notional value of $68 million to the stockpile, though the actual revenue will depend on recovery rates and realised prices.
Rather than rushing to full capacity, Almonty is deliberately starting with lower-grade material to fine-tune the processing circuit before introducing higher grades. The company says the stockpile alone provides enough feed for around 2.6 months of operation at the initial configuration, allowing ample time to stabilise ore blending and ensure consistent concentrate quality. The plant is designed to produce high-purity tungsten concentrate — a material in rising demand from the defence and high-tech sectors.
Alongside the production ramp, Almonty has launched a new drilling programme for molybdenum in the Yeongwol district, directly adjacent to Sangdong. The campaign is designed to confirm molybdenum resources that could support future expansion of the broader project, adding a second commodity to what is primarily a tungsten-focused strategy.
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The operational progress comes against a backdrop of sharply rising tungsten prices. North American tungsten oxide prices climbed to around $34.17 per kilogram in the first quarter of 2026, nearly double the $19.35 seen a year earlier. The rally reflects constrained supply and surging demand from Western governments seeking to reduce reliance on Chinese sources, particularly after recent US procurement restrictions in the defence sector and Chinese export controls on tungsten.
Financial momentum has also been building. Almonty reported first-quarter revenue of $25.4 million, a 221% increase year-on-year, while operating cash flow turned positive at $9.7 million. In June, the company closed an oversubscribed $700 million bond issue with a coupon of 2.25%, maturing in 2031. Just days before the production start, the stock was added to both the Russell 1000 and Russell 3000 indices, a move expected to boost visibility among institutional investors and passive funds.
Despite the flurry of positive news, the share price has retreated from its highs. Trading at around €14.17, the stock sits well below the 52-week peak of nearly €19. The market appears to be absorbing the recent financing and index inclusion simultaneously, while waiting for tangible production results. Almonty’s market capitalisation remains substantial at roughly $4.6 billion, and analysts will now focus on how quickly the ore stockpile can be converted into shippable concentrate.
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The Sangdong mine, one of the world’s historically largest and highest-grade tungsten deposits, is being positioned as the centrepiece of an integrated supply chain that includes a planned downstream tungsten oxide plant and long-term off-take agreements already in place. Combined with existing operations in Portugal and projects in Spain and the US, Almonty aims to become a leading non-Chinese tungsten producer at a time when critical mineral independence has become a strategic priority for Western allies. The coming quarters will test whether that ambition translates into consistent production numbers.
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