Almonty's Tungsten Boom Meets Its Cost Reckoning
Published on 11/14/2026 at 17:10 | Editorial boerse-global.de
Almonty's first tungsten concentrate from Sangdong has barely left the dock, yet the market is already asking a harder question than whether the mine can produce. The answer hinges on whether it can produce profitably — and the early scorecard is mixed.
Stifel Nicolaus trimmed its price target on the stock from US$21 to US$18, keeping its buy rating intact. The cut followed quarterly results that came in below the brokerage's own revenue estimate, paired with higher costs. The shares nonetheless climbed 8.5% on Friday, a sign investors are weighing the growth story against the expense line and, for now, siding with growth.
A quarter of superlatives
The numbers behind that debate are striking. Revenue for the latest quarter reached C$41.89 million, a 381% surge year over year. Mining operating income came in at C$26 million, and net profit hit C$50.23 million — up 51.2%.
The tailwind is easy to identify. European APT averaged US$2,800 per MTU in the most recently reported quarter, a 355% jump from the same period a year earlier. Higher tungsten prices have handed Almonty a powerful lever, provided the company can convert richer sales into operating earnings rather than watching costs eat the gains.
Should investors sell immediately? Or is it worth buying Almonty?
From first pour to first shipment
Operationally, the company has moved quickly. Sangdong produced its first tungsten concentrate in September, and after the quarter closed, the first container was loaded in Busan for shipment to a foreign customer. The arc now stretches from production through to the preparation of an actual delivery — a transition from project milestone to running business.
More than 90% of Phase I output is contractually committed, according to the company. That figure and the loaded container belong together: secured offtake only matters if Almonty can deliver the agreed volumes economically. Management also plans a Phase II expansion at Sangdong that would nearly double throughput capacity to 1.2 million tonnes a year, adding potential — and cost — to the equation.
The legal overhang
Alongside the operating story sits a dispute with Deutsche Rohstoff. The company said on Wednesday it is pursuing claims of roughly US$67 million against Almonty in Canada. By its account, Almonty has filed a related suit and the proceedings have been consolidated. Those claims are Deutsche Rohstoff's assertions, not court findings.
For investors, that risk belongs in the same ledger as the production ramp: a reliable business becomes more valuable if legal and financial burdens stay manageable.
What has to line up
The next yardstick is therefore clearly drawn. Production, contracted offtake and delivery must converge with a sustainable cost and earnings trajectory. Stifel's buy rating signals continued confidence; its lower target shows where that confidence meets its limits. The optimism becomes convincing once Sangdong's operational strides translate into durable financial results — and that is the test Almonty now faces.
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