Almonty Industries Boosts Tungsten Outlook with Contract Extension

Almonty Industries Inc. has strengthened its position with the expansion of a key off-take agreement. This agreement, in collaboration with Global Tungsten & Powders (GTP), now covers 90% of the tungsten concentrates from the Sangdong mine's Phase I. The contract duration extends to 21 years, augmenting the supply volume by 40% to 4.41 million MTU. Notably, the renegotiated pricing formula promises a 6.3% increase in selling prices, potentially adding USD 30 million annually in revenue.

This development, succeeding the Sangdong plant's operational launch, enhances future cash flow visibility. GTP, a prime tungsten powder manufacturer, secures conflict-free tungsten amid China's export constraints. The agreement excludes Phase II developments, allowing Almonty to market substantial future volumes independently. Reflecting robust tungsten prices, Almonty’s share target rose to CAD 38.90, highlighting significant potential from the current rate.