Almonty Industries Increases Target Price Amid Strategic Molybdenum Deal

Almonty Industries Inc. sees a significant target price increase from CAD 3.21 to CAD 5.20 per share, according to Sphene Capital GmbH. This revision is due to a new offtake agreement with SeAH Group for molybdenum production at Almonty's Sangdong project. Previously seen as potential, this deal now adds value to Almonty's stock.

The agreement establishes Almonty as a prominent supplier of tungsten and molybdenum, with a stable revenue stream now factored into Sphene Capital's Discounted Cash Flow model. SeAH Group, an influential Korean steel producer, supports this partnership as their subsidiary manages the only molybdenum roasting facility in Asia outside China.

Furthermore, the project has all necessary permits with production expected by the end of 2026, promising operational longevity. The offtake includes a USD 19 per pound floor price, offering financial planning stability.