Almonty is currently convincing in many areas: strong price development, strong figures and a buy recommendation. The tungsten producer seems to finally be discovered by investors. At EUR 0.54, the share is at its highest level since the beginning of 2023 and has gained around 38% in the current year alone. From Sphene Capital's perspective, the shares of the raw materials company with mines in Spain, Portugal and South Korea remain a buy. After convincing half-year figures, the analysts from Munich slightly raised their price target from CAD 2.13 to CAD 2.31 and confirmed their buy recommendation.Almonty positively surprised analysts with its development in the first half of 2024. At CAD 15.8 million, sales were around 25% above the same period last year and also above analyst estimates. Almonty's current growth driver is increased production at the Panasqueira mine in Portugal. While the mining business is profitable, EBITDA at -1.5 million CAD and net income at -5.6 million CAD were still negative as expected, but were better than expected. In addition to negative currency effects, Almonty's results are influenced by investments in the development of the Sangdong mine in South Korea. With the commissioning of what will probably be the largest tungsten mine in the world, Almonty will grow into a new dimension next year.Sphene Capital expects sales of CAD 26.5 million for the current year. Next year it should be CAD 104 million and CAD 187.5 million in 2026. EBITDA is expected to explode from -4.5 million CAD in 2024 to 15.8 million CAD next year and 45.8 million CAD in 2026. In 2026, Almonty's net profit is expected to be CAD 27 million. This means that the price-earnings ratio for 2026 for what will then be the largest supplier of the critical raw material outside of China and Russia is well below 10. From the analysts' point of view, this is clearly too cheap and the Almonty share is a buy.
AII Price at posting:
89.5¢ Sentiment: Buy Disclosure: Held
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