Almonty Faces Operational Hurdles Despite $33M Accounting Windfall

Financial Highlights and Market Moves

Almonty Industries delivered a headline-grabbing net income of CAD 33.2 million in the third quarter of 2025, a dramatic turnaround from a loss of CAD 5.3 million a year earlier. This swing was primarily driven by a CAD 34.5 million non-cash gain from the revaluation of warrant liabilities, following the redenomination of certain CDI options from Australian to Canadian dollars. While this accounting adjustment removed future foreign exchange volatility, it also obscures the underlying operational profitability, which remains under pressure as reflected in a negative adjusted EBITDA of CAD 2.2 million.

Revenue climbed 28% year-over-year to CAD 8.7 million, supported by steady output from the Panasqueira Mine in Portugal and a favourable tungsten price environment. However, general and administrative expenses nearly tripled to CAD 3.7 million, reflecting increased corporate and regulatory costs tied to the company’s recent Nasdaq uplisting and associated activities.

Sangdong Mine, From Construction to Production

The company’s flagship Sangdong Mine in South Korea, historically one of the world’s largest tungsten deposits, is now substantially complete in construction with ramp-up activities underway. Management is focused on transitioning to final project commissioning and commercial production, aiming to position Sangdong as the Western world’s largest tungsten mine. This milestone is critical as geopolitical tensions and supply chain security concerns drive demand for non-China tungsten sources, especially for defense and advanced manufacturing sectors.

Almonty is also advancing a large-scale drilling program at the Sangdong Molybdenum project, targeting future production to address a global molybdenum shortage. The strategic importance of Sangdong cannot be overstated, as it is expected to supply over 80% of global non-China tungsten production once fully operational, reshaping allied tungsten trade flows for decades.

Strategic Expansion and Capital Strengthening

In addition to Sangdong, Almonty acquired a promising tungsten project in Beaverhead County, Montana, for US$10 million, targeting near-term production by the second half of 2026. This acquisition complements the company’s existing assets in Portugal and Spain, reinforcing its footprint in Western tungsten supply chains.

The company’s successful uplisting to the Nasdaq Capital Market in July 2025, coupled with an upsized public offering that raised US$90 million gross proceeds, has significantly bolstered its cash position to CAD 111.6 million as of September 30, 2025. This capital infusion provides financial flexibility to support commissioning activities and further growth initiatives.

Looking Ahead, Opportunities and Risks

While the warrant liability revaluation provided a one-time boost to net income, Almonty’s core operational performance continues to reflect the challenges of transitioning from construction to production. The ramp-up at Sangdong will be closely watched by investors, as successful commissioning is key to unlocking the mine’s full potential and meeting surging demand from Western governments and defense customers.

Management’s commentary underscores confidence in Almonty’s strategic positioning amid geopolitical tensions, but the company must navigate typical risks associated with project commissioning, market volatility, and supply chain dynamics. The next quarters will reveal whether Almonty can convert its promising pipeline into sustained profitability and market leadership.