Almonty Stock Splits Analysts as Stifel Initiates Buy Rating
Almonty Industries' stock surged by 11% last week, closing at EUR 12.09 on Friday, after Stifel initiated coverage with a Buy rating and a price target of USD 25.
The move came despite Goldman Sachs opening its own coverage with a Neutral stance and a USD 13 target, citing tungsten price normalization and slower ramp-up at Almonty's Sangdong mine in South Korea.
Almonty began commercial tungsten production two weeks ago and secured South Korean inspection certificates for the processing and crushing facilities at Sangdong, clearing Phase I and the sale of tungsten concentrate. Over 90% of Phase I production is tied up under a 21-year offtake agreement.
The company also signed a multi-year take-or-pay offtake contract with Wolfram Bergbau und Hütten AG for the retreatment of tailings at the Los Santos mine in Spain, committing a minimum volume of 1,720 tonnes of contained tungsten trioxide and including an upfront payment of USD 3.0 million.
Almonty's partnership with Rwanda hands the Rwandan state a 25% stake in subsidiary Almonty Rwanda Pty Ltd, reinforcing the company's global expansion story.