“I just think the Australian market is much more conducive to these sorts of speciality metal raisings,” Frazer told Paydirt after lodging the Almonty prospectus. “I also really believe in the future of tungsten because not only has it got all of its traditional uses like machine parts, it’s also being used now for the glass on mobile phones and in a lot of new battery applications. “Most importantly, 80% of the world’s tungsten is produced in China and essentially the reason we like Almonty is it’s all outside of China, so it gives a little bit more diversity of supply for the market.
“This is a tremendous opportunity for Australian investors to get direct tungsten exposure outside of China to three producing assets when you factor in what they’re doing in Spain. And it compares very favourably to other listed tungsten companies, of which there are not very many.”
“It’s very hard to find good exposure to this sector,” he said. “I must say that having just come back from Sydney and talking to institutions over there, the interest is high for this story so I’m expecting it will be heavily oversubscribed.
“Tungsten can be a difficult commodity and you have to be tough to do well in that industry. And there’s no one tougher than Lewis in this space, he’s been in tungsten his whole life.”
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Article by Michael Washbourne | Paydirt Media | Republished by Almonty Industries
Veteran stockbroker Andrew Frazer has lauded the healthy appetite Australian investors have for speciality metals stories as he prepares to list one of the world’s largest tungsten players on the ASX.
Frazer’s Lazarus Corporate Finance Pty Ltd is the lead manager for the proposed listing of Almonty Industries Inc, which could debut on the bourse as early as the end of this month pending a successful IPO of $15-25 million.
Almonty is already listed on the TSX and currently produces tungsten from the Panasqueira Mine in Portugal. However, the jewel in the company’s crown is the upcoming Sangdong Mine in South Korea which is poised to become the largest tungsten producer outside China.
Frazer said with the market continuing to salivate over new floats and Sangdong firmly on track to produce first tungsten next year, the timing was perfect for Almonty to undertake a dual listing.
Almonty is forecast to produce circa 93,000 mtu in 2021, with that output expected to increase to 350,000 mtu once Sangdong ramps up from mid next year. Sangdong, less than 200km south-east of Seoul, is currently in development. A technical report published in 2016 indicated a pre-production capex of $US65.6 million for a base case 13-year operation producing an annual average of 220,500 mtu. Cumulative after-tax cash flow is estimated at $US280 million with total revenue of $US827 million.
Almonty believes Sangdong is capable of being upgraded to as much as 650,000 mtu which would account for 30% of all tungsten production outside of China and 7-10% of global supply.
Frazer said one of the key highlights of the Almonty opportunity was an existing offtake arrangement with the company’s second largest shareholder, The Plansee Group.
Plansee and Almonty president Lewis Black — also the company’s biggest share-holder with a 19.5% holding — have a long-standing business relationship dating back more than a decade. “Investors are essentially never going to be beholden to the tungsten price,” Frazer said. “Lewis has always sold tungsten to Plansee and I think having an offtake partner like that makes you a lot more comfortable putting money into a company like this.”
Frazer said a minimum IPO raise of $15 million would open the door for Almonty to drawdown on its US$75 million debt facility with German bank KfW which marks the final piece in the funding puzzle for the development of Sangdong.
With Plansee being an Austrian company, the KfW project finance is also fully guaranteed by OEKB as a form of export credit agency cover.
Frazer said the recent resurgence of ASX-listed tungsten plays King Island Scheelite Ltd and ECG Resources Ltd (formerly Speciality Metals International) was a good sign for investors ahead of the Almonty listing.
Almonty also plans to use cash flow generated from production at Sangdong to develop its Valtreixal project in Spain.
Article by Michael Washbourne | Paydirt Media | Republished by Almonty Industries
Almonty today announced the commencement of processing plant throughput operations at its Sangdong Mine in Gangwon Province, South Korea.
Almonty today announced that it has joined the large-cap Russell 1000® Index and the broad-market Russell 3000® Index, effective with the opening of United States equity markets today.
Almonty today announced an update on its large-scale drilling program at the Sangdong Molybdenum Project adjacent to Almonty’s Sangdong Mine in Yeongwol, Gangwon Province, South Korea, to confirm molybdenum resources ahead of future project development.
Almonty (NASDAQ: ALM) (TSX: AII) (ASX: AII) (FSE: ALI1) is a leading supplier of conflict free tungsten – a strategic metal critical to the defense and advanced technology sectors. As geopolitical tensions heighten, tungsten has become essential for armor, munitions, and electronics manufacturing. Almonty’s flagship Sangdong Tungsten Mine in South Korea, historically one of the world’s largest and highest-grade tungsten deposits, is expected to supply over 80% of global non-China tungsten production upon reaching full capacity, directly addressing critical supply vulnerabilities highlighted by recent U.S. defense procurement bans and export restrictions by China. With established operations in Portugal and additional projects in Spain, Almonty is strategically aligned to meet rapidly rising demand from Western allies committed to supply-chain security and defense readiness. To learn more, please visit almonty.com.
Legal Notice
The release, publication, or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published, or distributed should inform themselves about and observe such restrictions. Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws.
All statements, other than statements of present or historical facts, are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are typically identified by words such as “plan”, “development”, “growth”, “continued”, “intentions”, “expectations”, “emerging”, “evolving”, “strategy”, “opportunities”, “anticipated”, “trends”, “potential”, “outlook”, “ability”, “additional”, “on track”, “prospects”, “viability”, “estimated”, “reaches”, “enhancing”, “strengthen”, “target”, “believes”, “next steps” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements in this news release include, but are not limited to, statements concerning the completion of the Offering, the Company’s redomiciling initiatives, the Company’s position as a leading supplier of tungsten to the U.S. and its allies, the timing of any listing of the Common Shares on the Nasdaq, the continued listing of the Common Shares on the TSX and the ASX and trading on the Frankfurt Stock Exchange, and the use of proceeds of the Offering.
Forward-looking statements are based upon certain assumptions and other important factors that, if untrue, could cause actual results to be materially different from future results expressed or implied by such statements. There can be no assurance that forward-looking statements will prove to be accurate. Key assumptions upon which the Company’s forward-looking information is based include, without limitation, the absence of market conditions that could adversely impact the Offering or the intended listing of the Common Shares on the Nasdaq; the satisfaction of all listing requirements of the Nasdaq and continued listing requirements of the TSX and ASX; the achievement of any closing conditions to the Offering; and the absence of material adverse changes in the Company’s industry or the global economy including interest rates, inflationary pressures, supply chain disruptions, and commodity market volatility.
Forward-looking statements are also subject to risks and uncertainties facing the Company’s business, including, without limitation, the risks and uncertainties identified in the Registration Statement; risks relating to the Offering not being completed in a timely manner or at all, including due to unfavourable market or other conditions or factors; the possibility that the required approvals for or conditions to the Offering will not be received or satisfied on a timely basis or at all; changes in the anticipated timing for closing the Offering; business disruption during the pendency of or following the Offering; diversion of management time on Offering-related issues; the ability to retain members of Almonty’s management team; the impact of the Offering on relationships with customers, suppliers, employees and other business counterparties; risks related to the reaction of customers, shareholders and members of the public to the Offering; and other events that could adversely impact the completion of the Offering, including industry or economic conditions outside of Almonty’s control. Any of these risks could have a material adverse effect on the Company’s business, financial condition, results of operations and growth prospects. Readers should consider reviewing the detailed risk discussion in the Company’s Registration Statement, the most recent Annual Information Form and the amended Management Discussion and Analysis for the three months ended March 31, 2025 filed on SEDAR+, for a fuller understanding of the risks and uncertainties that affect the Company’s business and operations.
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, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE, EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
For further information, please contact:
Lewis Black
Chairman, President and CEO
Telephone: +1 647-438-9766
Email: info@almonty.com
