Almonty Industries has officially transitioned its flagship Sangdong tungsten mine in South Korea from development into commercial production. This pivotal shift establishes a significant new source of the critical metal outside of China, marking a strategic advancement for Western supply chains.
Operational Launch and Processing Details
The company announced that on December 16, the first truckload of ore was successfully deposited at the Sangdong mine’s Run-of-Mine (ROM) pad. This event is recognized as the final operational hurdle before achieving full-scale commercial output.
Ore extracted via underground mining methods—involving blasting within the tunnels and transport via a haulage system—is now being trucked to this central ROM pad. Here, the material is sorted by grade and stockpiled before advancing through the processing circuit. This includes stages of coarse and fine crushing, followed by grinding, flotation to separate the tungsten-bearing minerals, and final drying and packaging for customers.
Almonty reports that extensive preparatory underground work is substantially complete. This preparatory phase encompassed geological exploration, ground and rock stabilization, load testing, and the installation of primary infrastructure.
Strengthened Financial Position Through Capital Raise
Coinciding with this operational progress, Almonty has significantly bolstered its balance sheet. On December 10, the company closed an upsized, fully underwritten equity placement raising $129.375 million. BofA Securities acted as the lead bookrunner.
The offering involved issuing 20.7 million shares at a price of $6.25 per share. Management states the proceeds are allocated for several key initiatives:
* Exploration and development work at the Gentung Browns Lake tungsten project in Montana, USA
* Expansion activities at the Panasqueira mine in Portugal
* Exploration programs for the Sangdong molybdenum project
* Working capital and general corporate purposes
In a related move signaling no immediate need for further financing, Almonty voluntarily withdrew its base prospectus for additional securities offerings one day prior to the production announcement.
Strategic Market Position and Expansion
Addressing Supply Chain Dependence
The Sangdong operation is positioned to become a cornerstone of a Western-centric tungsten supply. At full capacity, the mine is projected to account for over 80% of the world’s tungsten production outside of China. This directly challenges the current market dynamic, where China controls more than 80% of global supply.
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Tungsten is classified as a strategic metal vital for defense and high-technology applications, including:
* Armor-piercing ammunition
* Semiconductor manufacturing
* Hardware components for AI systems
* Aerospace applications
Building a North American Presence
Almonty is advancing its strategy to re-establish a commercial tungsten mining footprint in the United States. Following its acquisition of the Gentung Browns Lake project in Montana in late October, the company aims to restart U.S. tungsten production by the end of 2026. This would position Almonty as the first significant U.S. tungsten producer in roughly a decade.
To support its global operations, the company appointed retired Brigadier General Steven L. Allen as Chief Operating Officer, effective December 1. His focus will be on optimizing processes and supply chains at both the Sangdong and Panasqueira sites.
Recent Financial Performance
The company’s latest quarterly report, dated November 3, 2025, disclosed the following financial highlights for Q3 2025:
* Revenue increased 28% year-over-year to $8.7 million.
* Net income reached $33.2 million (diluted EPS: $0.13), significantly influenced by a non-cash fair value gain on convertible debentures and warrants.
* Cash and cash equivalents stood at $111.6 million as of September 30, 2025, a substantial increase from $7.8 million at the end of 2024.
These figures demonstrate a concurrent strengthening of liquidity alongside operational advancements at Sangdong.
Path Forward and Production Ramp-Up
With commercial extraction now underway, Almonty’s immediate focus is on stabilizing the production process at Sangdong. Each stage of the processing plant will be tested for stability and performance before a gradual ramp-up to full capacity is initiated.
The company continues to advance its projects in Europe and North America in parallel. It is also evaluating potential partnerships to solidify its role within the Western tungsten value chain. Key updates anticipated in the coming months include specific production volume figures, a detailed timeline to full capacity at Sangdong, and progress reports from the Montana project, which will provide clearer indicators of the business trajectory.
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