New Study Outlines US$346M Tungsten Project as Prices Surge

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Allied Critical Metals Inc. (ACM:CSE; ACMIF:OTCQB; 0VJ0:FSE) announced the results of its initial Preliminary Economic Assessment (PEA) for its 100% owned Borralha Tungsten Project in northern Portugal. The study outlines the conceptual development of an underground mining operation at the Santa Helena Breccia deposit with a nominal processing capacity of 1.4 million tonnes per year and gravity-dominant processing designed to produce a wolframite concentrate grading approximately 65% WO₃.

The PEA reported after-tax net present value at an 8% discount rate of US$346.6 million with an internal rate of return of 48.8% using a tungsten price assumption of US$1,000 per metric tonne unit (mtu) WO₃. Under the Argus long-term forecast averaging approximately US$704 per mtu WO₃, the project generated an after-tax NPV of US$134.0 million and an IRR of 27.2%. At a price assumption of US$1,500 per mtu WO₃, the study outlined an after-tax NPV of US$706.4 million and an IRR of 78.4%.

The PEA estimated initial capital costs of approximately US$91 million, equivalent to CA$124.3 million, with a projected payback period of 4.2 years at US$1,000 per mtu WO₃. Sustaining capital was estimated at approximately US$87 million, bringing total life-of-mine capital expenditures to about US$178 million.

According to the company, the mine plan is based on an initial 11-year production period from 2028 to 2039. The plan contemplates average annual production of approximately 1,708 tonnes of WO₃, with peak annual production of 2,388 tonnes. The operation is designed to process approximately 13.4 million tonnes of ore over the life of mine at an average mill feed grade of approximately 0.20% WO₃.

The company reported that the mine design incorporates Measured, Indicated, and Inferred Mineral Resources from the Santa Helena Breccia deposit. The updated mineral resource estimate includes 13.0 million tonnes of Measured and Indicated resources grading 0.21% WO₃ and 7.7 million tonnes of Inferred resources grading 0.18% WO₃. The deposit has been tested by 41 drill holes and surface trenching over approximately 400 meters of strike length to depths exceeding 350 meters below surface, and mineralization remains open along strike and at depth.

The company also stated that the Portuguese Environment Agency issued a favourable Environmental Impact Declaration in January 2026, subject to standard regulatory conditions, confirming environmental acceptability of the proposed development.

Roy Bonnell, CEO and Director of Allied, stated in a company news release, "The completion of the PEA marks another important milestone for the Company. In addition to the significant tailwinds provided by the significant increase in the price of tungsten, which has surged to more than US$1,900/mtu, we are very pleased to see have been able to receive support from idD Portugal Defence, the Portuguese public entity overseeing the nation's Defence Industry, which has endorsed the Borralha Project as a strategic initiative of national importance."

He added in the same release, "Importantly, this PEA reflects only the Santa Helena Breccia and an initial 11-year mine plan. With future exploration work and the 20,000 meters of drilling currently underway, we are focused on expanding resources, extending mine life, and enhancing overall project scale."

The PEA also noted that the study is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied that would enable them to be categorized as Mineral Reserves.

Tungsten Market Tightness Highlights Strategic Importance of the Critical Metal

Benzinga wrote on February 27 that tungsten prices had surged dramatically, noting that "tungsten prices have quietly risen by around 500% over the past year." The publication also cited analysts who warned that the market had "sleepwalked into a supply crunch," driven by declining ore grades, environmental restrictions, and underinvestment in new production capacity. The report also emphasized the metal's industrial role, stating that tungsten had "the highest melting point of any metal" and was widely used in cutting tools, drilling, high-performance machining, and defense applications because few materials combined the same level of heat tolerance, hardness, and density.

Data released by IndexBox on February 27 provided a regional perspective on market dynamics. The report stated that approximately 869 tons of tungsten were consumed in Northern America in 2024, while the regional market value reached about US$57 million. According to the report, Canada accounted for roughly 73% of regional consumption and 100% of production that year, while the United States accounted for about 90% of imports by volume. IndexBox also reported that export prices in Northern America had risen sharply, writing that "the export price in Northern America amounted to US$48,602 per ton, growing by 67% against the previous year."

More recent commentary on March 4 from Muflih Hidayat described how market structure had amplified price movements and strategic interest in the metal. The analysis stated that "the tungsten price surge exemplifies this phenomenon perfectly," adding that strategic minerals operated under different economic dynamics because demand often remained stable even at elevated prices. The report also noted the metal's unique characteristics, writing that "tungsten possesses the highest melting point of any metallic element at 3,422 degrees Celsius," which contributed to its role in semiconductor manufacturing, aerospace systems, and other high-performance applications.

The same analysis also highlighted the concentration of global supply, stating that "China's dominance in tungsten production represents one of the most concentrated supply chains in global commodity markets," with the country accounting for roughly 70 to 80 percent of global primary production capacity. This level of concentration, combined with export licensing systems and production quotas, has influenced global availability and pricing conditions for the metal.

Development Activity at Borralha and Vila Verde

Allied's investor presentation outlines a fully funded 20,000-meter drilling program underway at the Borralha Tungsten Project, targeting expansion of the current mineral resource and potential extension of the initial 11-year mine plan. Drilling is focused on the Santa Helena Breccia deposit, where mineralization remains open along strike and at depth.

Exploration activity completed in 2025 at Borralha included 4,120 meters of drilling across 15 drill holes. Reported drill highlights include 12.0 meters grading 4.27% WO₃, including 6.0 meters grading 8.39% WO₃, as well as 18.0 meters grading 0.85% WO₃, including 4.0 meters grading 3.72% WO₃. Additional intercepts reported include 100.0 meters grading 0.21 percent WO₃, including 32.0 meters grading 0.33 percent WO₃.

At the Vila Verde tungsten tin project, the company is advancing toward execution of an Experimental Mining License that would allow production of up to 150,000 tonnes of mineralized material per year until completion of a feasibility study and issuance of a full mining license. Quarry permitting is described with an initial capacity of 150,000 tonnes per year, with potential expansion to 300,000 tonnes per year.

The presentation also describes plans for a pilot plant at Vila Verde designed to process mineralized material from the Justes deposit. The plant is designed with an initial production capacity of 150,000 tonnes per year and an estimated annual production of approximately 250 tonnes of WO₃, with potential expansion to 300,000 tonnes per year. Construction and operations of the pilot plant are estimated to begin in 2026.

Ownership and Share Structure¹

Insiders own approximately 31% of Allied. About 16% is held by institutions and institutional investors, and the rest is held by retail shareholders.

The company has 170 million common shares issued and outstanding and 214 million common shares on a fully diluted basis. Its market cap is ~CA$180 million. Its 52-week range is CA$0.20–CA$1.30 per share.