Allied Critical Metals Inc. (ACM:CSE; ACMIF:OTCQB; 0VJ0:FSE) announced additional economic and technical detail from the recently released initial Preliminary Economic Assessment for its 100% owned Borralha Tungsten Project in northern Portugal. The company stated that previously announced project economics remain unchanged.
According to the disclosure, the project has an after-tax net present value at an 8% discount rate of CA$473.4 million (US$346.6 million) and an internal rate of return of 48.8% at a tungsten price of CA$1,365 per mtu (US$1,000 per mtu) WO3. The company reported a payback period of approximately 2.2 years from the commencement of commercial production, corresponding to approximately 4.2 years from the start of construction under the same price case.
The Borralha PEA outlines an underground tungsten development project with an estimated initial capital cost of approximately CA$124.2 million (US$91 million). The company reported sustaining capital of approximately US$87 million and total life-of-mine capital of approximately US$178 million. The project design incorporates underground mine development, construction of a processing plant, and associated site infrastructure.
Average annual revenue over the initial mine life at US$1,000 per mtu WO3 was estimated at approximately CA$252.52 million (US$184.89 million). The same scenario projected average annual EBITDA of approximately CA$142.18 million (US$104.10 million) and average annual free cash flow of approximately CA$96.28 million (US$70.49 million). Life-of-mine revenue under this scenario was estimated at CA$2.78 billion (US$2.03 billion) with life-of-mine free cash flow of CA$1.06 billion (US$775.43 million).
The PEA evaluated three pricing scenarios. Under the base case of CA$962 per mtu (US$704 per mtu) WO3, the project recorded an after-tax NPV of CA$182.7 million (US$134.0 million) with an IRR of 27.2% and a payback period of 3.8 years from the start of construction. Under the high case of CA$2,049 per mtu (US$1,500 per mtu) WO3, the after-tax NPV was CA$963.8 million (US$706.4 million) with an IRR of 78.4% and a payback period of 1.2 years from the start of construction.
Roy Bonnell, CEO and Director of Allied Critical Metals, stated in a company news release, "Following the release of our initial Borralha PEA, we received strong investor interest in additional project-level detail. This supplementary disclosure highlights the Project's capital efficiency, strong annual cash generation, and well-developed infrastructure platform. Importantly, the underlying economics of the PEA remain unchanged, while the additional payback presentation provides another useful reference point for investors evaluating project returns and the strong leverage Borralha has to tungsten prices."
The initial PEA mine plan assumes life of mine average production of approximately 1,708 tonnes of WO3 per year, a processing rate of approximately 1.4 million tonnes per year of mineralized material, and an average mill feed grade of approximately 0.20% WO3. Operating costs were reported at approximately US$59.3 per tonne processed.
Infrastructure planning for the Borralha Project includes a connection to hydroelectric grid power through a planned 60-kilovolt overhead line approximately 6.5 kilometers long linking the Borralha substation to the SE Frades substation. The design also includes water supply sourced from local groundwater and surface water, water recycling within the processing flowsheet, and three retention basins for operational storage and environmental control. Surface infrastructure has been designed with a centralized layout including the process plant, paste backfill facility, workshops, administrative buildings, and support infrastructure adjacent to the orebody.
The initial mineral resource estimate referenced in the PEA is based on the 2025 mineral resource estimate for the Santa Helena Breccia. According to the estimate, measured and indicated resources total 13.0 million tonnes grading 0.21% WO3, with inferred resources of 7.7 million tonnes grading 0.18% WO3.
Allied also reported that a fully funded 20,000-meter drill program is underway, targeting resource expansion, conversion of existing resources, and potential extension of the mine life beyond the initial 11 year production plan.
Tight Supply and Export Controls Reshape the Global Tungsten Market
Tungsten market conditions drew increasing attention in early 2026 as analysts pointed to tightening supply and rising prices. According to a February 23 report from BMO Global Commodities Research cited by Mining.com, the world had "sleepwalked" into a tungsten crunch caused by declining ore grades, environmental restrictions, and a lack of new mining investment. The analysts stated that global inventories were critically low and another supply deficit was expected in 2026.
The report noted that tungsten remained essential across heavy industry. BMO wrote that tungsten carbide, valued for its hardness and density, was widely used in machine parts, drill bits, and hard-facing materials, making the metal "a key enabler of manufacturing, mining and defence." The analysts also highlighted the market's concentration, stating that China accounted for roughly 75% of global supply and that production had stagnated amid tightening environmental controls and export restrictions.
A separate February 23 analysis by Sunlight Xiang described tungsten as a critical industrial material with unique physical properties. The report stated that tungsten had "the highest melting point of any metal at 3,422°C and a density of 19.3 g/cm³," and that it played an important role in applications ranging from manufacturing equipment to semiconductor components and military systems.
Price movements reflected these supply pressures. The February 23 BMO analysis noted that ammonium paratungstate prices had broken out from a long-term average of about US$300 per tonne in 2025 to around US$1,775 per tonne by early 2026, according to Fastmarkets data. The analysts wrote that "the cure for high prices is high prices," adding that sustained higher prices would likely be required to encourage new mine development.
Supply dynamics were also shaped by policy decisions in China. According to a March 12 report published by boerse global.de, China implemented tighter export quotas for tungsten at the end of 2025, contributing to a sharp rise in prices. The report stated that tungsten prices had advanced by more than 160% over the past year, while BMO Capital Markets noted that Chinese tungsten exports had "temporarily ground to a complete halt" as the market adjusted to the new restrictions.
Exploration, Development, and Permitting Milestones at Borralha and Vila Verde
According to its presentation, Allied Critical Metals completed the Preliminary Economic Assessment for the Borralha Tungsten Project in the first quarter of 2026. The presentation also notes that the company initiated a 20,000-meter drill program at Borralha in the first quarter of 2026, targeting resource expansion and potential mine life extension.
The Borralha Project has advanced through several permitting and development stages. The Environmental Impact Declaration for Borralha was granted in January 2026, which enables progression into detailed engineering and development activities. The project is advancing through Portugal's mine licensing pathway under APA and DGEG.
The presentation states that Borralha has cleared environmental and licensing hurdles and is advancing toward construction and production. The permitting status table indicates that exploration licensing is completed, the Environmental Impact Assessment approval has been granted, and the mining exploitation license provides a 25 year concession. Construction and production are targeted for approximately 2027.
At the Vila Verde Tungsten Tin Project, the mineral license is being converted from an exploration license to an experimental mining license, which allows for up to approximately 150,000 tonnes per year of mineralized material to be processed until the full-scale mining license is granted following completion of a feasibility study. Quarry permitting is expected to allow processing of 150,000 tonnes per year initially, with potential expansion to 300,000 tonnes per year.
The presentation states that the Vila Verde pilot plant design targets a production capacity of 150,000 tonnes per year, which would result in approximately 250 tonnes of WO3 per year under the current design parameters. Construction and operations for the pilot plant are estimated to begin in 2026.
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Allied Critical Metals Inc. (ACM:CSE; ACMIF:OTCQB; 0VJ0:FSE)
According to the milestone timeline, construction of the Vila Verde pilot plant is expected to begin in the second quarter of 2026, with pilot plant operations projected to begin in the fourth quarter of 2026. The timeline also notes the launch of a 1,250-meter drill program at Vila Verde in the third quarter of 2026 and re-assay work on historical drilling at the project.
The company also reported that a letter of intent has been signed with Global Tungsten and Powders in Pennsylvania for the sale of tungsten concentrate from pilot plant production, and that discussions are ongoing with additional refineries regarding potential concentrate sales.
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 171 million common shares issued and outstanding and 214 million common shares on a fully diluted basis. Its market cap is ~CA$220 million. Its 52-week range is CA$0.20–CA$1.37 per share.
Important Disclosures:
- Allied Critical Metals Inc. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Allied Critical Metals Inc.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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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.
