Production milestone leaves financial concerns unresolved
The analysis describes investors as skeptical about delays to expansion plans and technical optimization work at Sangdong. It classifies Almonty as a highly speculative investment, citing a high market valuation, substantial financial exposure from a convertible bond and heavy share dilution.
Separately, Almonty reported share repurchases in its September 29, 2026, shareholder letter. The company said it had spent approximately US$48 million to buy back 2,914,739 common shares for cancellation. It also said it intended to continue purchases and introduce an automatic repurchase plan that could operate during trading blackout periods.
ARIVA.DE displayed a share price of 7.791 euros, with a change of 0.00%, alongside the analysis summary. The site identified the material as third-party content and said it did not adopt that content as its own.
Commissioning, certification and the production ramp-up
Almonty's operating announcements span several milestones. On March 16, 2026, it reported that Phase 1 at Sangdong, in Gangwon Province, had been commissioned and was producing. The plant's design calls for annual processing of approximately 640,000 metric tons of ore, yielding roughly 2,300 metric tons of tungsten concentrate.
Inspection certificates issued by South Korean authorities on September 17, 2026, subsequently cleared the processing plant and crushing facilities for commercial operation, including concentrate sales domestically and abroad. Almonty called the certificates the last administrative step required before commercial production. On September 23, the company announced Sangdong's first tungsten output since 1993, following a production halt of roughly 33 years.
CEO Lewis Black provided a ramp-up update in the September 29 shareholder letter: the mill was operating 13 hours daily, seven days a week, with a move to round-the-clock operation planned over the following days. He said material stockpiled at the site was sufficient for approximately 4.6 months of the ramp-up.
The planned second phase, expected to come online in 2027, would increase annual ore-processing capacity to about 1.2 million metric tons and roughly double tungsten output to 4,600 metric tons a year. These are design capacities rather than reported production levels.
According to Almonty, Sangdong has an expected operating life exceeding 45 years. Its average ore grade is approximately 0.51% tungsten trioxide (WO3), about three times the global average. The company says it has invested more than US$100 million in redevelopment since acquiring the project in 2015.
Long-term sales agreement and sourcing requirements
In July 2026, Almonty revised its Phase 1 concentrate offtake agreement with Global Tungsten & Powders LLC, part of Austria's Plansee Group. The agreement covers approximately 90% of Phase 1 production and now runs for 21 years from first delivery, rather than 15.
The amendment increased the total contracted quantity by 40%, from 3,150,000 to 4,410,000 metric tonne units (MTU). After ramp-up, minimum annual volumes are 210,000 MTU. Almonty said pricing improved by about 6.3%, bringing expected annual contract revenue to US$490 million at current pricing.
Almonty also highlights the concentration of tungsten supply in China, which it says accounts for approximately 88% of global production. The company states that U.S. defense procurement requirements mandate non-China tungsten sourcing after 2027. In its September 2026 certification announcement, it separately noted that U.S. defense procurement rules would trace ore to its place of origin beginning in January 2027.
Projects in Rwanda and Spain
The September 29 shareholder letter also outlined activity outside South Korea. Almonty said it had formed Almonty Rwanda with the Government of Rwanda. The government's 25% stake is in exchange for contributing the Shyorongi tungsten exploration concession and a mineral processing license.
In Spain, Almonty said it had signed a multiyear take-or-pay offtake agreement covering at least approximately 1,720 metric tons of contained WO3 recoverable from tailings at its Los Santos mine.
