Almonty Restarts Two Dormant Tungsten Assets as Analysts Clash Over Fair Value
Published on 09/29/2026 at 03:01 | Editorial boerse-global.de
Almonty Industries has crossed a line few junior miners ever reach: it is now a producer. First tungsten concentrate has flowed at Sangdong in South Korea, the site's first output since 1993, and the company holds the operating certificates for both the processing plant and the crushing circuit — the formal green light to treat and sell concentrate at industrial scale.
That operational milestone is only half the story. Roughly two weeks ago, Almonty signed a long-term offtake agreement with Wolfram Bergbau und Hütten AG, the Sandvik subsidiary, covering tungsten concentrate recovered from existing tailings at the Los Santos mine in Spain. Structured on a take-or-pay basis, the deal carries a conditional one-time prepayment of USD 3 million for the purchasing rights and is meant to underwrite the restart of a facility that has sat on care and maintenance since February 2020. Pricing will track the broader tungsten market, but a contractual floor cushions the downside and gives the Spanish project a more predictable revenue base.
Tailings First, Mining Later
Notably, the Spanish relaunch does not begin with new open-pit extraction. Almonty intends to recover tungsten from material already mined and processed, sitting in existing stockpiles. Trial runs and tests have, according to the company, delivered markedly better recovery rates for the tungsten trioxide locked in that material. Sphene Capital argues this step-by-step route sharply reduces restart and financing risk, trimming the immediate capital requirement while making future cash inflows easier to plan.
Analyst Peter Thilo Hasler reiterated his buy rating on Almonty yesterday. Sphene Capital set a 36-month price target of USD 26.40, replacing an earlier target of CAD 38.90 — a reworking that implies 92.4 percent upside from the most recent analysis. The operational progress at the company's European sites sits at the heart of the re-rating, with the revival of the long-idled Iberian project as its centerpiece.
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Korea Ramps Up With Demand Locked In
In South Korea, the picture is one of transition from developer to active producer. More than 90 percent of Phase I output at Sangdong is committed under a long-term offtake agreement with partner Global Tungsten & Powders, giving the company substantial sales visibility through the early ramp. Management's focus now is lifting plant throughput steadily before broadening the customer base to buyers in South Korea and further afield once operations stabilize.
The changed operating reality drew fresh coverage last week — and the verdicts could hardly be further apart. On Thursday, Goldman Sachs initiated with a neutral rating and a USD 13.00 target, reasoning that favorable tungsten market conditions and Sangdong's demanding production profile are already largely priced in. A day later, Stifel went the other way: buy rating, USD 25 target, citing the commercial start of Phase I in Korea alongside planned growth there and at the Panasqueira mine in Portugal. On that basis, Stifel sees Almonty climbing to become the leading Western tungsten producer by the end of 2028.
A Rare Position, an Unproven Ramp
The gap between those targets tells its own story. Almonty occupies a rare slot among producers outside the dominant tungsten-supplying nations, yet it still has to prove its projected output volumes in day-to-day industrial operation. Investors are unlikely to fully embrace the shift to steady-state producer until the supply chain runs reliably — a point the spread between USD 13.00 and USD 25.00 makes plain.
The Korean start has been flanked by further moves to secure raw material supply, including the multi-year delivery contract with the Sandvik subsidiary for processing stockpile material.
In German trading yesterday, the stock closed at EUR 11.70, down 2.8 percent on the day. The shares have nonetheless advanced 47 percent since the start of the year.
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