Tungsten specialist Almonty Industries has capitalized on the momentum. Geopolitical risks and growing global concerns about raw material and security supply chains are increasingly leading Almonty to be seen as a reliable supplier and key provider of this critical metal in the West. With its listing on the US Nasdaq stock exchange, a significantly oversubscribed capital increase, and gross proceeds totaling USD 90 million, the Canadian company has moved up to a new league. It is now on a par with billion-dollar companies such as MP Materials in terms of securing scarce raw materials.
Significantly Oversubscribed Offering
It had already been anticipated. Yesterday, shares of Almonty Industries (ASX:AII) were traded for the first time on the US technology exchange Nasdaq. In addition, one of the world’s leading tungsten producers announced the pricing of its US-guaranteed public offering of 20,000,000 common shares at an issue price of USD 4.50 per share. This will generate gross proceeds of USD 90 million for Almonty, enabling the Company, led by CEO Lewis Black, to enter into the next stage of its development. The offering is expected to close as early as today, subject to the fulfillment of customary closing conditions.
This article is disseminated in partnership with Almonty Industries Inc. It is intended to inform investors and should not be taken as a recommendation or financial advice.
The proceeds from the oversubscribed offering will be used to develop the tungsten oxide facility in Sangdong, further expanding the Company’s position as a leading Western supplier of tungsten for the defense needs of the US and its allies. With the Sangdong mine in South Korea, which will celebrate the start of production later this year, more than 40% of the tungsten supply outside China is expected to be covered from 2027 onwards. Analyst Peter Thilo Hasler of Sphene Capital then expects revenues of CAD 483.4 million and EBIT of CAD 198.8 million.
Strategic Move with Foresight
With its own tungsten oxide production and smelting operations, Almonty Industries will be able to become completely independent of the Chinese refining market in the future. They will become the only fully integrated tungsten source in a region with a stable legal system, which would be a clear, unique selling point. The US government has already taken note of this. In an official letter, the US Congress emphasized the strategic importance of the Company for the supply of critical raw materials to the US.
Sell on Good News
Following the announcement of the Nasdaq listing and the capital raise, short-term investors took profits after a weeks-long rally, putting pressure on Almonty’s share price and causing it to drop nearly 12% to CAD 6.96. In the long term, however, the decisions to relocate to the US, list on the Nasdaq, and implement a capital measure that has propelled the Company into new spheres are clearly positive. After a period of consolidation, a renewed surge is likely. The next milestone is the start of production, which is expected before the end of this year.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as “Relevant Persons”) may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a “Transaction”). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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