Almonty Sangdong Mine Produces First Concentrate as Tungsten Shortages Bite

As China's tungsten oxide and ammonium paratungstate (APT) export curbs have led to shortages in Western markets, Almonty Industries is ramping up production at its Sangdong mine in South Korea. The mine has produced its first saleable tonne of concentrate, which is now ready for export.

Commercial tungsten production began about two weeks ago, with operations running 12 hours a day, seven days a week. As the process stabilizes, Almonty plans to extend daily operating time to 14 hours and then 16 hours. The company has secured an offtake agreement with Global Tungsten & Powders for 4,410,000 MTU over 21 years.

Analysts at Stifel have initiated coverage on the stock with a Buy rating and a $25.00 price target, while Goldman Sachs has assigned Neutral with a $13.00 target. The stock closed at EUR 12.09 on European trading venues Friday, a daily gain of 11%, but has slipped 3.5% since commercial production began.