On behalf of global leading tungsten producer and developer, Almonty Industries Inc’s (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI.F), I am very pleased to provide an update on activities at the Company’s tungsten mines.
Sangdong Tungsten Mine in South Korea (Sangdong)
The construction of Sangdong is on budget and on schedule. The road and river diversion is expected to be completed in early October. Both pieces of infrastructure are rated accordingly under our ESG programme for a 100-year event.
Underground mine development continues as planned, and we have, as of last week, completed 17.5% of the scheduled 3,748m. Our shotcrete batch plant continues to impress with a rebound rate around 6% and even at times as low as 3%!
To put that into perspective a rebound rate for sloping walls or vertical walls runs between 5-10%. Rebound is the part of the shotcrete that does not adhere to the surface during application, causing some material to ricochet. The loss of material and subsequent clean-up can slow down work on site while increasing costs, so it´s important to minimize it.
This is a great example of the depth of talent that is evident within the Almonty in house team, utilizing learnings and experiences from our >100 years of operations at Almonty’s Panasqueira Tungsten and Tin Mine in Portugal. As previously outlined, Almonty’s key operational team from Panasqueira has and will continue to have a key role in the construction, commissioning, ramp-up and production at Sangdong which we believe will strongly de-risk the project.
Over US$14m has now been spent at the Sangdong site against the project cost which
equates to approximately 13.8% of total project cost (including US$6m for guarantee fees). The lock cycle tests have all been successfully completed by Metso Outotec and they now move forward with the engineering study for the processing plant. The second payment deposit is expected to be made by Almonty in October for the mills and their delivery is still on track for January 2022.
Once Sangdong is in production from Q4 2022, Almonty is expected to produce approximately 30% of all tungsten outside of China and approximately 7-10% of global supply.
On August 5th the South Korean Government announced that it would be increasing the national stockpile which includes Tungsten from 57 days to 100 days. We are now in dialogue with the Authorities in regard to their Tungsten requirements.
Panasqueira Tungsten and Tin Mine in Portugal (Panasqueira)
The Panasqueira Tungsten and Tin Mine in Portugal has begun its transition over to renewable energy with 28% of energy currently supplied from our onsite solar installation. Reliance on renewable energy will continue to increase as further solar and wind power is brought on-line. Ultimately the company is targeting 80% of its energy use from renewable energy.
As previously outlined, as Almonty is striving to become a globally significant mining company, it is critical that we continue our strong focus on ESG. Almonty is proud of the progress made towards our ESG programme at Panasqueira and those proposed at Sangdong. All new facilities at Sangdong are designed and will be built in compliance with IFC / Equatorial Principal standards. Additionally, Sangdong power will be sourced from 100% renewable energy as the Company targets carbon neutrality.
We also note that the tungsten price has risen to US$315/MTU which is +50% higher than this time last year and a 2 year high. The Company notes estimates from brokers and third-party providers that the tungsten price is expected to be >US$350/MTU in the near term.
Please refer to a chart of the tungsten price below:
For and on behalf of the Board.
President and Chief Executive Officer
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The principal business of Toronto, Canada-based Almonty Industries Inc. is the mining, processing and shipping of tungsten concentrate from its Los Santos Mine in western Spain and its Panasqueira mine in Portugal as well as the development of its Sangdong tungsten mine in Gangwon Province, South Korea and the development of the Valtreixal tin/tungsten project in north western Spain.
The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira mine, which has been in production since 1896, is located approximately 260 kilometres northeast of Lisbon, Portugal, was acquired in January 2016 and produces tungsten concentrate.
The Sangdong mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired in September 2015 through the acquisition of a 100% interest in Woulfe Mining Corp.
Almonty owns 100% of the Valtreixal tin-tungsten project in north-western Spain.
Further information about Almonty’s activities may be found at www.almonty.com and under Almonty’s profile at www.sedar.com.
Almonty Announces the Filing of its Unaudited Interim Condensed Consolidated Financial Statements and MD&A for the Six Months Ended June 30, 2023
Almonty announces the filing of its unaudited interim condensed consolidated financial statements and MD&A for the six months ended June 30, 2023 and $1.1M in positive EBITDA from mining operations.
Almonty Industries Inc. today is pleased to provide a construction progress update for its Sangdong Tungsten Mine located in South Korea.
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When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. These statements and information are based on management’s beliefs, estimates and opinions on the date that statements are made and reflect Almonty’s current expectations.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Almonty to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the receipt of all required approvals, unanticipated costs and expenses, general market and industry conditions and perational risks, including large project risk and contractual factors, any specific risks relating to fluctuations in the price of ammonium para tungstate (“APT”) from which the sale price of Almonty’s tungsten concentrate is derived, actual results of mining and exploration activities, environmental, economic and political risks of the jurisdictions in which Almonty’s operations are located and changes in project parameters as plans continue to be refined, forecasts and assessments relating to Almonty’s business, credit and liquidity risks, hedging risk, competition in the mining industry, risks related to the market price of Almonty’s shares, the ability of Almonty to retain key management employees or procure the services of skilled and experienced personnel, risks related to claims and legal proceedings against Almonty and any of its operating mines, risks relating to unknown defects and impairments, risks related to the adequacy of internal control over financial reporting, risks related to governmental regulations, including environmental regulations, risks related to international operations of Almonty, risks relating to exploration, development and operations at Almonty’s tungsten mines, the ability of Almonty to obtain and maintain necessary permits, the ability of Almonty to comply with applicable laws, regulations and permitting requirements, lack of suitable infrastructure and employees to support Almonty’s mining operations, uncertainty in the accuracy of mineral reserves and mineral resources estimates, production estimates from Almonty’s mining operations, inability to replace and expand mineral reserves, uncertainties related to title and indigenous rights with respect to mineral properties owned directly or indirectly by Almonty, challenges related to global financial conditions, risks related to future sales or issuance of equity securities, differences in the interpretation or application of tax laws and regulations or accounting policies and rules of the TSX.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to, the receipt of all required final approvals, no unanticipated delays in the project financing, no material unanticipated costs and expenses, no material adverse change in general market and industry conditions and no unanticipated material operational risks, including large project risk and contractual factors, no material adverse change in the market price of APT, the continuing ability to fund or obtain funding for outstanding commitments, expectations regarding the resolution of legal and tax matters, no negative change to applicable laws, the ability to secure local contractors, employees and assistance as and when required and on reasonable terms, and such other assumptions and factors as are set out herein. Although Almonty has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Almonty. Accordingly, readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary.
Investors are cautioned against attributing undue certainty to forward-looking statements. Almonty cautions that the foregoing list of material factors is not exhaustive. When relying on Almonty’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.
Almonty has also assumed that material factors will not cause any forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF ALMONTY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE ALMONTY MAY ELECT TO DO SO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.