Almonty starts Sangdong processing, expands GTP offtake
Almonty Industries commenced processing at the Sangdong Mine in South Korea, utilizing stockpiled ore to initiate production. The company secured an expanded offtake agreement with Global Tungsten & Powders, increasing volumes by 40% and extending the term to 21 years, which is projected to boost annual revenue by US$30 million. Additionally, Almonty was included in the Russell 1000 and Russell 3000 indexes, while Diamond Equity Research maintained a valuation target of C$31.80 per share.
*this image is generated using AI for illustrative purposes only.
Almonty Industries has commenced processing operations at the Sangdong Mine in South Korea, marking its transition from mine development to the production of saleable tungsten concentrate. The company also amended an offtake agreement with Global Tungsten & Powders (GTP), a member of the Plansee Group, which increases contracted volumes by 40% and extends the term to 21 years. The revised pricing is expected to add at least US$30 million in annual revenue, bringing estimated annual revenue under the agreement to approximately US$490 million at current ammonium paratungstate (APT) prices.
Expanded GTP Offtake Agreement
The amended agreement with GTP increases contracted volumes from 3.15 million MTU to 4.41 million MTU. Following ramp-up, GTP will purchase at least 210,000 MTU annually, representing approximately 90% of planned Phase I production. The agreement excludes the planned Phase II expansion, which is expected to roughly double Sangdong’s annual processing capacity, preserving additional commercial upside.
| Metric | Value |
|---|---|
| Contract Term | 21 years |
| Contracted Volume Increase | 40% |
| Annual Purchase (Post-Ramp) | 210,000 MTU |
| Estimated Annual Revenue | US$490 million |
Sangdong Processing Operations
Initial plant feed is being drawn from approximately 139,700 tonnes of stockpiled ore grading around 0.25% WO₃. This stockpile includes 120,000 tonnes held at the end of Q1 2026 and 19,700 tonnes mined during Q2 2026 at an average grade of 0.35% WO₃. The stockpile represents approximately 2.6 months of Phase I throughput and carries an illustrative gross in-process value of approximately US$68 million at prevailing tungsten prices.
Index Inclusion and Valuation
Almonty Industries joined the Russell 1000 Index and the Russell 3000 Index effective June 29, 2026, following the 2026 annual reconstitution. Diamond Equity Research reiterated its illustrative valuation of C$31.80 per share, maintaining APT price assumptions of US$2,850/MTU for 2026e and US$2,640/MTU for 2027e. The firm noted that the enhanced economics from the expanded GTP offtake agreement have not yet been incorporated into the valuation.
What is the expected timeline for the Phase II expansion, and how will the company secure offtake partners for the additional production capacity?
How might the 21-year offtake agreement impact Almonty's ability to capitalize on potential spikes in spot tungsten prices above current APT levels?
What are the projected capital expenditure requirements to transition from processing stockpiled ore to full-scale underground mining operations?
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