Global tungsten concentrate producer Almonty Industries Inc. (AII:TSX; ALM:NASDAQ; AII:ASX; ALI1:Frankfurt) announced its financial results for the first quarter ending March 31, a release on May 11 said.
The company celebrated a major milestone on March 17 with a formal commissioning ceremony at its Sangdong tungsten mine located in Gangwon Province, South Korea, an event that marked the completion of the mine's development phase and its transition towards commercial operations. Recognized as one of the world's largest and highest-grade tungsten deposits, the Sangdong Mine is poised to become a crucial supplier for Western industrial and defense supply chains.
For the first quarter of 2026, Almonty reported a substantial 221% increase in revenue, reaching CA$25.4 million. This surge was primarily fueled by a significant rise in the spot price of tungsten APT, alongside continued robust performance at the company's Panasqueira Mine. The financial period also saw a notable improvement in cash flow, with the company generating a positive operating cash flow of CA$9.7 million, a stark contrast to the negative cash flow of (CA$4.4) million recorded in the first quarter of 2025. This marks a significant turning point in Almonty's financial trajectory.
"The first quarter of 2026 represents a pivotal moment for Almonty," said Chairman, President, and Chief Executive Officer Lewis Black. "The results speak for themselves — revenue increased 221% to CA$25.4 million, we generated positive Adjusted EBITDA of CA$6.1 million and positive operating cash flow of CA$9.7 million, marking a decisive inflection point in the Company's financial trajectory."
He continued, "With the formal commissioning ceremony at Sangdong held in March 2026, the relocation of our corporate headquarters to Dillon, Montana, and tungsten prices continuing to reflect the critical nature of this metal to Western defense and industrial supply chains, we believe Almonty has never been better positioned. As we ramp Sangdong toward full commercial throughput and advance the Gentung Tungsten Project toward production, we are building the foundation for what we expect will be a long-duration, high-margin operating platform, and one that directly addresses the West's most urgent critical mineral vulnerabilities."
Almonty announced a strategic move of its corporate headquarters from Toronto, Ontario, Canada, to Dillon, Montana, in the United States to align more closely with U.S. defense and industrial stakeholders and bring the company nearer to its Gentung Tungsten Project and essential government, defense, and industrial partners.
The financial highlights for the first quarter of 2026 underscored the significant revenue increase to CA$25.4 million from CA$7.9 million in the corresponding quarter of the previous year, driven largely by the heightened spot price of tungsten APT and the sustained strong operations at the Panasqueira Mine.
Details of Results
In the first quarter of 2026, general and administrative expenses for the company totaled CA$7.1 million, a significant increase from CA$3.4 million in the same quarter of the previous year, the release said. This rise was mainly due to higher salaries and wages as the company expanded its management team to support its growth trajectory. Additionally, there were increased costs related to consulting, legal fees, office expenses, and travel, which are associated with the company's operations as a multi-listed public entity across four international exchanges. The company anticipates that these general and administrative expenses will normalize throughout the remainder of 2026.
The net loss for the first quarter of 2026 was reported at CA$5.3 million, or (CA$0.02) per share, which marks a substantial improvement from a loss of CA$34.6 million, or (CA$0.13) per share, in the corresponding quarter of the previous year. This improvement was largely due to the absence of a CA$25.8 million non-cash loss on the revaluation of warrant liabilities that was recorded in the first quarter of 2025. Additionally, the company benefited from significantly higher revenue and income from mining operations.
The company said the reported net loss for the current quarter included CA$6.4 million in non-cash losses on the revaluation of embedded derivative liabilities and CA$2 million in non-cash losses on the revaluation of warrant liabilities, both of which were influenced by an increase in Almonty's share price during the first quarter of 2026. These non-cash accounting charges did not impact the company's operating performance, cash flow, or liquidity position.
Adjusted EBITDA for the first quarter of 2026 was CA$6.1 million, compared to (CA$2.4) million in the same quarter of the previous year, reflecting a significant improvement in the company's underlying operational performance, the release said. As of March 31, Almonty's cash reserves totaled CA$259.9 million, slightly down from CA$268.4 million as of December 31, 2025.
The first quarter of 2026 saw the company incur CA$8.4 million in aggregate non-cash revaluation charges, which included CA$6.4 million related to the fair value revaluation of embedded derivative liabilities and CA$2 million related to the fair value revaluation of warrant liabilities. These charges were a result of the appreciation in the company's share price and changes in volatility assumptions and other market-based inputs during the period. While these charges affected the reported net income, they did not influence the company's cash position, liquidity, or operational progress.
"Our first quarter results demonstrate the significant operating leverage inherent in our business model as tungsten prices strengthen," Interim Chief Financial Officer Guillaume de Lamaziere said. "Revenue was driven by the Panasqueira Mine, which delivered CA$25.4 million in quarterly revenue — more than triple the same period last year — reflecting the favorable APT pricing environment."
He added, "Our underlying operating performance was strong and consistent with the transformation underway across the business. With CA$259.9 million in cash and a working capital position of CA$169.5 million, we remain well-capitalized to advance our broader development pipeline.”
Broader Goals Include Production Expansion in Korea, US
ALM's first-quarter results for 2026 aligned closely with expectations, largely driven by the rising prices of tungsten, wrote Alliance Global Partners Analyst Jake Sekelsky in an updated research note on May 12. The company's primary operations during this period were centered around the smaller Panasqueira Mine in Portugal, as the Sangdong tungsten mine in Korea is still ramping up to its full capacity. Consequently, the results from this quarter are considered less indicative of ALM's broader strategic goals, which include significant expansion of tungsten production in both Korea and the United States.
The financial results for the first quarter, showing operating cash flow of CA$9.7 million and revenue of CA$25.4 million, which marked a 221% increase compared to the first quarter of 2025, were primarily fueled by soaring APT (ammonium paratungstate) prices reaching new all-time highs, Sekelsky noted. This surge in revenue is timely as it coincides with the Sangdong mine's progression towards full operational capacity. It is anticipated that Sangdong will soon play a crucial role in significantly boosting production and revenue, with expectations for the consolidated quarterly revenue to exceed CA$100 million by the fourth quarter of 2026.
Looking ahead, the Sangdong mine is viewed as the most significant catalyst for ALM's stock in the second half of 2026, expected to transform the company's tungsten production capabilities, the analyst wrote.
Additionally, the Gentung tungsten project in Montana is poised to follow in Sangdong's footsteps. With substantial infrastructure and permits already in place, ALM aims to commence development at Gentung as early as the second half of 2026, targeting an initial production of 140,000 tons per annum. Although this is significantly less than the 640,000 tons per annum projected at Sangdong, establishing tungsten production in the United States holds strategic importance. This move aligns with U.S. policies focused on reshoring critical mineral supply chains and reducing dependency on foreign adversaries for these resources.
In light of these developments and the continued positive momentum in tungsten prices, the financial model for ALM has been updated to reflect current spot prices more accurately, according to Sekelsky. Consequently, he maintained a Buy rating but raised the target price from US$19.25 to US$26.25 per share.
Cantor Fitzgerald Analyst Matthew O'Keefe agreed in a May 12 update that the revenue surge was primarily fueled by higher tungsten APT pricing and the ongoing operations at the Panasqueira mine in Portugal.
The company's balance sheet remains strong, he wrote, which is believed to provide ample flexibility to complete the ramp-up at the Sangdong mine and further advance tungsten development initiatives. Consequently, the company has maintained its Buy rating and a price target of US$25.80 per share, O'Keefe wrote.
Excelsior Prosperity noted on May 12, "(ALM) is a tungsten sector bellwether and one of the few producers of this critical and defense metal," the site said. "(ALM) went up 26.5X from the January 2025 low of US$0.92 to the recent April 2026 all-time high of US$24.41."
Tungsten Catalyst Price Influencing Industry
The tungsten market is currently experiencing a significant shift due to the dramatic increase in the price of APT, a primary external catalyst influencing the industry, according to report by Ad Hoc News on May 13. In early May, the price of APT soared to approximately US$3,140 per metric tonne unit, a substantial rise from around US$862 at the beginning of the year. This historic surge is transforming the economic landscape for producers with projects ready to launch, and Sangdong is positioned to capitalize on this opportunity.
China's control over more than 80% of the global tungsten supply has long been a concern for Western buyers, given the strategic importance of tungsten in various industrial applications. In response to this dominance, Sangdong has been developed to potentially meet about 40% of the world's tungsten demand outside of China. This is particularly significant in light of a new U.S. procurement rule, effective from January 1, 2027, which will prohibit the use of Chinese tungsten in American defense supply chains.
Streetwise Ownership Overview*
Almonty Industries Inc. (AII:TSX;ALM:NASDAQ;ALL:ASX;ALI:Frankfurt)
| Date | Old Symbol | Old Shares | New Symbol | New Shares |
|---|---|---|---|---|
| 07/07/25 | AII | 1.5 | AII | 1 |
| 09/28/11 | RCG.P | 6.67 | AII | 1 |
Currently, in its first phase, Sangdong is producing approximately 2,300 tonnes of tungsten concentrate annually, Ad Hoc News reported. With the second phase of the project targeted for completion by 2027, the production capacity is expected to double. If this expansion proves successful, Almonty Industries will transition from being perceived merely as a speculative mining venture to becoming a key industrial supplier of tungsten, further solidifying its position in the global market.
Tungsten is used in aerospace and defense equipment because its extreme heat resistance and hardness allow components to withstand intense temperatures, stress, and wear, noted a piece by Ashitha Shivaprasad and Anmol Choubey for Reuters on April 29.
"The United States currently has no active commercial tungsten mines, and while a few projects are under development to curb dependence on Chinese supply, there is no established timeline for production to resume," the authors noted.
Ownership and Share Structure1
About 8% of the company is owned by insiders and management, about 11% by corporations, and about 31% by institutions. The rest is retail.
Top shareholders include Global Tungsten & Powders Corp. with 9.75%, President and Chief Executive Officer Lewis Black with 5.36%, Van Eck Associates Corp. with 3.96%, Deutsche Rohstoff AG with 2.9%, and Fidelity Management and Research Co. with 2.82%.
Almonty's market cap is CA$8.59 billion with 280.37 million shares outstanding. It trades in a 52-week range of CA$3.36 and CA$33.35.
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- Steve Sobek 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.
