Almonty Lands Sandvik Offtake and Stifel Buy Rating as Sangdong Ships First Concentrate
Published on 09/27/2026 at 03:20 | Editorial boerse-global.de
Almonty Industries has locked in another long-term customer for its tungsten output, agreeing a multi-year offtake contract with Wolfram Bergbau und Hütten AG, a subsidiary of the Sandvik Group. The deal, signed on 17 September, covers processing of tailings material from the Los Santos mine in Spain under a firm purchase commitment.
At the centre of the arrangement is a minimum volume of roughly 1,720 tonnes of contained tungsten trioxide. The contract also provides for a conditional one-time payment of USD 3.0 million for the transfer of the offtake rights, opening a fresh revenue channel from stockpiles Almonty already holds in Spain.
Korean Mine Reaches Commercial Stage
The Sandvik-linked agreement lands as Almonty's flagship South Korean operation moves into a new phase. Commercial tungsten production began at the Sangdong mine a little over two weeks ago, following the receipt of final operating permits for the processing facilities. That certification allows the company to ship and invoice customers for its tungsten concentrate.
Demand for that material is largely spoken for. A separate accord with Global Tungsten & Powders LLC guarantees purchases over a 21-year term from first delivery, with fixed minimum volumes kicking in after the ramp-up period. All told, more than 90% of Phase I output from Sangdong is committed under the long-term contract.
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Rwanda Stake Adds Mining Rights
Almonty is broadening its supply base beyond Korea and Spain. Under a partnership in Rwanda, the government there holds a 25% interest in Almonty Rwanda, contributing mining rights in return, while Almonty controls the remaining 75%. The company received the Shyorongi concession's exploration rights and a processing licence as part of the arrangement.
Management has also signalled financial flexibility through a buyback authorisation running for 36 months, permitting repurchases of the company's common stock.
Stifel Starts Coverage With USD 25 Target
The operational news flow has drawn fresh analyst attention. Brock Cannon of Stifel initiated coverage of the mining company with a Buy rating and a USD 25 price target, a call that Reuters reported lent support to the stock in pre-market trading.
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Investors responded decisively. Almonty shares climbed 11% on Friday to close at EUR 12.09, extending their advance since the start of the year to 52%. Market participants attributed the move to the analyst endorsement and to the company's progress in securing tungsten supply, according to media reports.
The rally has not been uninterrupted. Since commercial production started at Sangdong just over a week ago, the stock has slipped 1.7%, a reminder that the path from first concentrate to steady-state output rarely runs in a straight line.
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