Almonty Industries finds itself in a curious financial position. The company recently reported staggering multi-million dollar losses in its quarterly results, yet simultaneously stands on the verge of a transformative breakthrough with its strategically vital Sangdong tungsten mine in South Korea.
Operational Progress Overshadowed by Paper Losses
Beyond these accounting entries, the company’s operational reality presents a far more promising picture. Construction of the flagship Sangdong mine is nearing completion and has entered its final pre-production phase. Management has confirmed a production start date during the second half of 2025.
This development carries significant strategic weight. Upon completion, Sangdong will rank among the largest tungsten operations outside of China, the nation that currently dominates the global market for this critical mineral. This positions Almonty at the center of growing geopolitical efforts to establish reliable supply chains for strategic metals.
Quarterly Results Reveal Complex Financial Picture
The company’s second quarter 2025 financial statements revealed a net loss of CAD 58.2 million. This represents a substantial increase from the CAD 1.8 million loss reported during the same quarter last year. The announcement initially placed significant pressure on the company’s shares.
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A deeper examination of the financials reveals an unusual circumstance. The dramatic loss did not primarily stem from operational weaknesses. Instead, the results were heavily impacted by accounting effects directly tied to the positive performance of the company’s own share price.
Paradoxically, the rising valuation triggered substantial paper losses through two primary mechanisms:
- A CAD 38.1 million loss resulting from the revaluation of warrant liabilities
- An additional CAD 6.9 million loss from the revaluation of derivative financial instruments
These non-cash accounting adjustments became necessary as the share price experienced strong appreciation throughout the quarter, creating a seemingly contradictory situation for investors.
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