On February 17, 2026, Dave Storms, CFA, of Stonegate Capital Partners published a research update on American Tungsten Corp. (TUNG:CSE; TUNGF:OTCQB; RK9:FSE), a mineral exploration company focused on tungsten, molybdenum, and iron deposits in Canada and the United States. Stonegate does not issue formal ratings or price targets but provided a valuation analysis with a midpoint of CA$3.52 per share, representing significant upside from the current share price of CA$2.36. The firm uses an EV/Hectares valuation framework, applying a conservative multiple range of 0.02x to 0.04x, which returns a valuation range of CA$2.38 to CA$4.66.
American Tungsten's flagship asset is the IMA Mine Project, a past-producing tungsten-molybdenum underground mine located on patented claims in east-central Idaho. The report notes that the project narrative has shifted from planning to execution, with the company completing 2,120 feet of underground drilling across six holes by mid-January. Recent exploration results include high-grade underground channel sampling from the No. 5 vein averaging 1.04% WO₃ and 2.70 oz/t Ag, alongside drill results including 31 feet grading 0.48% WO₃ and 1.84 oz/t Ag and 11.1 feet grading 1.08% WO₃ and 2.05 oz/t Ag. Management has characterized these results as supportive of defining a mineral resource and advancing metallurgy, while also highlighting silver as a potential cost-offset.
On the corporate front, the company closed an upsized CA$7.0 million private placement in July 2025, issuing 14.0 million shares to strengthen the balance sheet for field execution. American Tungsten has also disclosed a Letter of Interest from the Export-Import Bank of the United States (EXIM) for up to US$25.5 million to support development of the IMA Project. Stonegate views this as an incremental validation of the strategic importance of domestic tungsten supply and a potential pathway toward non-dilutive or structured funding.
The company also holds an option to acquire the Star Mineral Property in British Columbia's Skeena Mining Division, spanning approximately 4,616 hectares. A recent airborne magnetic survey identified a 1.2 km-long anomaly, and early-stage surface samples returned iron values up to 63.3% Fe₂O₃. While not yet a production focus, the Star Project adds optionality to the company's critical mineral portfolio.
From a market perspective, the report highlights that China controls over 80% of global tungsten mining and processing and approximately 61% of global reserves. China's 2024 announcement banning tungsten exports has heightened urgency for domestic U.S. production. Global tungsten demand is projected to grow from US$5.55 billion to US$9.51 billion, driven by defense, technology, and battery applications.
On valuation, Stonegate's comparable company analysis shows peer EV/Hectares trading at a median of 0.11x versus TUNG at 0.02x. The firm notes that, based on the company's current enterprise value of US$86.1 million and median comp EV/NAV and EV/Reserve multiples of 0.62x and 12.9x, respectively, the implied asset NAV would be US$137.9 million on 6.7 thousand tonnes of reserves.
Key risks include exploration-stage uncertainty with no formal resource estimate or Preliminary Economic Assessment completed, commodity price volatility, dependence on external financing with no revenue or cash flow, and regulatory and permitting risks. As of the most recent quarter, the company held CA$5.2 million in cash with no debt.
At the current share price of CA$2.36, the stock trades approximately 33% below Stonegate's valuation midpoint of CA$3.52 and approximately 49% below the high end of the valuation range at CA$4.66.
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Disclosures for Stonegate Capital Partners, American Tungsten Corp., February 17, 2026
(a) The research analyst and/or a member of the analyst’s household do not have a financial interest in the debt or equity securities of the subject company. (b) The research analyst responsible for the preparation of this report has not received compensation that is based upon Stonegate’s investment banking revenues. (c) Stonegate or any affiliate have not managed or co-managed a public offering of securities for the subject company in the last twelve months, received investment banking compensation from the subject company in the last 12 months, nor expects or receive or intends or seek compensation for investment banking services from the subject company in the next three months. (d) Stonegate’s equity affiliate, Stonegate Capital Partners, “SCP” has a contractual agreement with the subject company to provide research services, investor relations support, and investor outreach. SCP receives a monthly retainer for these non-investment banking services. (e) Stonegate or its affiliates do not beneficially own 1% or more of any class of common equity securities of the subject company. (f) Stonegate does not make a market in the subject company. (g) The research analyst has not received any compensation from the subject company in the previous 12 months. (h) Stonegate, the research analyst, or associated person of Stonegate with the ability to influence the content of the research report knows or has reason to know of any material conflicts of interest at the time of publication or distribution of the research report. (i) No employee of Stonegate has a position as an officer or director of the subject company. Ratings - Stonegate does not provide ratings for the covered companies. Distribution of Ratings - Stonegate does not provide ratings for covered companies. Price Chart - Stonegate does not have, nor has previously had, a rating for its covered companies. Price Targets - Stonegate does not provide price targets for its covered companies. However, Stonegate does provide valuation analysis. Regulation Analyst Certification: I, Dave Storms, CFA, hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this report. For Additional Information Contact: Stonegate Capital Partners, Inc. Dave Storms, CFA [email protected] 214-987-4121
Please note that this report was originally prepared and issued by Stonegate for distribution to their market professional and institutional investor customers. Recipients who are not market professional or institutional investor customers of Stonegate should seek the advice of their independent financial advisor prior to taking any investment decision based on this report or for any necessary explanation of its contents. The information contained herein is based on sources which we believe to be reliable but is not necessarily complete and its accuracy cannot be guaranteed. Because the objectives of individual clients may vary, this report is not to be construed as an offer or the solicitation of an offer to sell or buy the securities herein mentioned. This report is the independent work of Stonegate Capital Partners and is not to be construed as having been issued by, or in any way endorsed or guaranteed by, any issuing companies of the securities mentioned herein. The firm and/or its employees and/or its individual shareholders and/or members of their families and/or its managed funds may have positions or warrants in the securities mentioned and, before or after your receipt of this report, may make or recommend purchases and/or sales for their own accounts or for the accounts of other customers of the firm from time to time in the open market or otherwise. While we endeavor to update the information contained herein on a reasonable basis, there may be regulatory, compliance, or other reasons that prevent us from doing so. The opinions or information expressed are believed to be accurate as of the date of this report; no subsequent publication or distribution of this report shall mean or imply that any such opinions or information remains current at any time after the date of this report. All opinions are subject to change without notice, and we do not undertake to advise you of any such changes. Reproduction or redistribution of this report without the expressed written consent of Stonegate Capital Partners is prohibited. Additional information on any securities mentioned is available on request.
