Almonty Industries: Why is the share price set to multiply, and is the supply chain breaking down?
In corporate development, there are various triggers for growth spurts and rising profits. At Almonty Industries (TSX:AII), the reason is clear: the Company will begin operating one of the world's largest tungsten mines in South Korea this summer. While other mining projects often still have to contend with lengthy approval processes or environmental regulations, and often offer little realistic prospect of success, Almonty is on the verge of expanding its production to such an extent that it could meet the entire demand of the US in the future. Those looking to invest in tungsten should go for the 'original' – Almonty shares. The situation on the tungsten market is now so tense that the price in Shanghai has risen to a 12-year high of over USD 56 per kg. Accordingly, the profitability of Almonty's mines in Portugal and South Korea is likely to increase further. Uncertain times lie ahead for defense companies such as Hensoldt, Renk, Rheinmetall, and their suppliers. When will the supply chain break down? – More on this in the report. De facto unlimited taxpayer money for defense
Last week, German Foreign Minister Dr. Johann David Wadephul (CDU) announced at an international ministerial meeting that Germany will invest 5% of its gross domestic product (GDP) in defense in the future. This corresponds to around EUR 200 billion, which could potentially flow to companies such as Hensoldt, Renk, and Rheinmetall, as well as their numerous suppliers, not least to meet US President Donald Trump's demands for more responsibility on the part of European NATO countries. China implements its plan – Companies follow suit
Almonty already successfully operates its own mine in Portugal and is soon set to become the largest tungsten producer outside China when it starts production in South Korea. The Middle Kingdom controls around 90% of the global tungsten trade – either through domestic mining or by processing imported raw materials. China is pursuing national interests and acting strategically. Almonty is therefore seen as a beacon of hope for Western industries, which are primarily concerned about the security of supply of this critical metal.
Without tungsten from reliable sources, it will become increasingly difficult to manufacture products such as ammunition or armored vehicles in the future. The high-tech industry also depends on secure sources of supply from allied countries. A prominent example is Apple's iPhone, whose vibration function is made possible by a tungsten component. The extremely hard metal is irreplaceable in many applications.
In plain terms: If Apple cannot obtain tungsten, iPhones will be delivered without a vibration function – or not at all. This is no longer just a question of rising prices, but primarily about access to the raw material. The global market comprises only around 100,000 tons per year and is dominated by a few players. If a major consumer loses access in the future, Almonty will become a realistic takeover target. Entertainment or Defense – who wins?
What is the true potential of Almonty – and its stock? If Apple can no longer sell iPhones, this will have enormous economic consequences. In the first quarter of 2025 alone, Apple generated USD 46.8 billion in revenue from the iPhone; in the traditionally stronger fourth quarter of 2024, the figure was almost USD 70 billion. There are over 2.3 billion Apple devices in circulation worldwide. The question is: What would Apple be willing to pay to secure its supply chain in the long term? The tech giant is increasingly in direct competition with the defense industry. NASDAQ listing brings fresh capital
Almonty recently announced its collaboration with the influential US lobby group American Defense International (ADI). Apart from Almonty, only one other raw materials company is represented there: MP Materials, which specializes in rare earths. The valuation comparison is particularly interesting: MP Materials has a market capitalization of around USD 3.5 billion, while Almonty stands at only USD 500 million. While MP Materials is already listed on the NASDAQ, Almonty has yet to take this step – a potential catalyst for the share price. Get in now – and be patient
CEO Lewis Black has repeatedly emphasized that he is managing Almonty (TSX:AII) from a shareholder perspective. As founder and major shareholder, he has personally participated in financing rounds. It is therefore quite conceivable that Black would be open to a takeover at an attractive price.
Anyone who wants to be part of the upcoming launch of the Sangdong mine should get in early. Interest in Almonty will likely increase significantly once the first ton is mined. Sphene Capital analyst Peter Thilo Hasler recently raised his price target from CAD 5.20 to CAD 5.40 and reiterated his 'Buy' recommendation. On Friday, Almonty's stock closed at CAD 2.40 ahead of the long holiday weekend (TSX: AII) – and as we all know, the profit is in the purchase. Tungsten Bar, Commodity Spot, Shanghai Metals Market, value in USD/kg, July 31, 2009 to May 1, 2025. (Source: Refinitiv) Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as 'Relevant Persons') currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a 'Transaction'). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company. In this respect, there is a concrete conflict of interest in the reporting on the companies.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships. For this reason, there is also a concrete conflict of interest. The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies. Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
This is sponsored content issued on behalf of Almonty Industries Inc., please see full disclaimer here.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Winnipeg Free Press
18 minutes ago
- Winnipeg Free Press
Prime Minister Carney in Brussels today for EU-Canada summit
BRUSSELS – Prime Minister Mark Carney is in Belgium today, where he visited a military cemetery before meeting with European Union leaders at an EU-Canada summit. Carney said on social media Sunday that he was in Brussels to launch 'a new era of partnership' between Canada and the European Union for the benefit of workers, businesses and security 'on both sides of the Atlantic.' Carney started the day with a visit to the Antwerp Schoonselhof Military Cemetery where 348 Canadian soldiers are buried. Later, he is expected to meet with Belgian Prime Minister Bart De Wever, European Council President António Costa and European Commission President Ursula von der Leyen. Carney posted on social media early on Monday that he spoke with U.S. President Donald Trump overnight, noting the conversation addressed the need to de-escalate the conflict in the Middle East, their shared commitment of a stronger NATO and progress in ongoing trade talks between Canada and the United States. At the EU-Canada summit, Foreign Affairs Minister Anita Anand and Defence Minister David McGuinty are expected to sign a security and defence agreement with the European bloc in what one European official described last week as one of the most ambitious deals the continent's powers have ever signed with a third country. The security and defence agreement aims to open the door to Canada's participation in the joint purchase of weapons with European countries. It will also lead to Canada's participation in the ReArm Europe initiative, allowing Canada to access a 150-billion-euro program for defence procurement, called Security Action for Europe. Canada will need to sign a second agreement with the European Commission before it can take part in the program. A government official briefing reporters on the trip said the partnership is expected to make procurement easier and more affordable, while also allowing Canada to diversify the sources of equipment. At the EU-Canada summit, leaders are also expected to issue a joint statement to underscore a willingness for continued pressure on Russia to end its war on Ukraine, including through further sanctions, and call for an immediate and permanent ceasefire in Gaza. The joint statement is also expected to touch on climate change, trade and digital and tech policy. Leaders at the EU-Canada summit are also slated to discuss global trade and commit to working towards full ratification and implementation of the Comprehensive Economic and Trade Agreement, the Canada-Europe free trade deal known as CETA. Monday Mornings The latest local business news and a lookahead to the coming week. The pact took effect provisionally in 2017, and most of its contents now apply. But all EU countries need to approve CETA before it can take full effect, with 10 members still left to ratify the deal. Carney, Costa and von der Leyen are scheduled to hold a joint press conference in the evening. On Tuesday, Carney travels to The Hague for the NATO summit. The international meetings come as Canada looks to reduce its defence procurement reliance on the United States due to strained relations over tariffs and U.S. President Donald Trump's repeated talk about Canada becoming a U.S. state. This report by The Canadian Press was first published June 23, 2025.
Winnipeg Free Press
18 minutes ago
- Winnipeg Free Press
In the news today: Carney in Brussels for EU-Canada summit
Here is a roundup of stories from The Canadian Press designed to bring you up to speed… Carney in Brussels for EU-Canada summit Prime Minister Mark Carney is in Belgium today, where he will visit a military cemetery before meeting with European Union leaders at an EU-Canada summit. Carney said on social media Sunday that he was in Brussels to launch 'a new era of partnership' between Canada and the European Union for the benefit of workers, businesses and security 'on both sides of the Atlantic.' He begins the day with a visit to the Antwerp Schoonselhof Military Cemetery where 348 Canadian soldiers are buried. At the EU-Canada summit, Foreign Affairs Minister Anita Anand and Defence Minister David McGuinty are expected to sign a security and defence agreement with the European bloc in what one European official described last week as one of the most ambitious deals the continent's powers have ever signed with a third country. The security and defence agreement aims to open the door to Canada's participation in the joint purchase of weapons with European countries. Here's what else we're watching… Ontario and Quebec continue to fight high heat Much of Ontario and southwestern Quebec will continue to bake in high temperatures Monday and Tuesday as a heat dome lingers over the region. Environment Canada issued a heat warning for the area on Saturday, saying hot and humid conditions will likely continue until Wednesday. In Toronto, the agency says the city saw a daytime high of 35 C on Sunday, with the humidex making it feel like 46 degrees at times. The dangerously high temperatures are expected to affect communities from southwestern Ontario and north to Sudbury and Timmins. People are encouraged to drink plenty of water to stay hydrated and be on alert for early signs of heat exhaustion. Alberta votes to decide Nenshi seat in legislature Alberta NDP leader Naheed Nenshi is looking to finally win a seat in the legislature after a year of sitting on the sidelines. He's running in one of three provincial byelections today as a candidate in Edmonton-Strathcona, where his predecessor Rachel Notley last won 80 per cent of the vote. In Edmonton-Ellerslie, NDP candidate Gurtej Singh Brar could solidify the opposition party's hold on the city, but United Conservative Party candidate Naresh Bhardwaj is hoping to make an inroad. In rural central Alberta, the separatist Republican Party of Alberta is aiming to capitalize on discontent with Ottawa. Republican leader Cameron Davies has been campaigning in Olds-Didsbury-Three Hills against the UCP's Tara Sawyer, the NDP's Bev Toews and Bill Tufts of the Wildrose Loyalty Coalition. The seat became vacant after former legislature speaker and long-time UCP member of the legislature Nathan Cooper resigned to take a post as Alberta's representative in Washington, D.C. Hudson's Bay to seek approval to sell three leases Hudson's Bay is expected back in court this morning where it will ask a judge to let it sell three of its leases to a B.C. mall owner. The defunct department store wants to transfer its leases for Tsawwassen Mills, Mayfair Shopping Centre and Woodgrove Centre to Ruby Liu. The real estate maven, who leads a company that owns all three malls, has offered $6 million for the trio of leases. She also wants up to 25 more leases at malls she does not own but Hudson's Bay is still working on getting approval from landlords, who are overwhelmingly objecting. Aside from the request to sell three leases to Liu, the Ontario Superior Court will also be asked to change the name of the department store company in creditor protection to avoid confusion that could arise now that Canadian Tire owns the rights to the Bay name. Ontario proposes to weaken pending recycling rules Ontario Premier Doug Ford's government is proposing to weaken an impending slate of new recycling rules because producers of the materials said the system is getting too expensive. The province began transitioning in 2023 toward making producers pay for the recycling of their packaging, paper and single-use items. The companies' obligations were set to increase next year, but the government is now looking to delay some measures and outright cancel others, such as requirements to extend collection beyond the residential system. Environmental advocates say the proposed changes let producers off the hook and will mean more materials will end up in landfills or be incinerated. Producers say despite the rising costs, recycling rates don't actually appear to be improving, so it's time for a broader rethink. Environment Minister Todd McCarthy said the proposed changes are about ensuring the sustainability of the blue box system and protecting against unintended consequences such as job losses. The Canadian Retail Council estimates that producer costs have already increased by about 350 per cent in three years and would nearly double again just from this year to next if no changes were made to the impending new rules for 2026. The government says blue box collection costs could more than double between 2020 and 2030. This report by The Canadian Press was first published June 23, 2025.
Ottawa Citizen
30 minutes ago
- Ottawa Citizen
Today's letters: AI could radically alter bilingualism training in the public service
Article content So, some seven country leaders plus the EC leader met in a nice place in Alberta, a tough job for Mark Carney. He wisely invited a few more leaders to try to get a bit more balance in this group where five of the eight guests come from western Europe, an area that has lagged economically for more than a decade and does not have a common foreign policy. Article content At present, their economies are barely equivalent to that of China who is not invited. Article content It is no wonder that Donald Trump does not pay much attention to that group since he does not care too much about western Europe. In fact, nobody really does except the media and some traditional protesters. This group now is mostly a pleasant outing for some European leaders, with Japan tagging along Article content And what did they do? They could not deal with the major conflicts in Sudan, Ukraine, Israel-Iran and Israel-Palestinians, because the leaders involved in these conflicts were not there (apart from Volodymyr Zelenskyy who usually come to beg for more money and arms). So, the European leaders could only demonstrate their weaknesses by once again using 'strong language' and offering 'unwavering support.' Article content Article content The group did not achieve results in the trade war between the U.S. and the rest of the world either, because most of the rest of the world was not there and these trade issues are complex. Article content In contrast to his predecessor, Carney handled this social event smoothly and managed to get along with Trump, no mean task. This was the best that could be expected from a group clearly past its prime. Article content People who criticize inviting Indian Prime Minister Narendra Modi to attend the G7 fail to understand the purpose of diplomacy. Article content Canada does not need diplomatic relations to deal with friendly countries. The prime ministers of Canada and the United Kingdom, for example, can phone or visit each other any time, discuss how to advance shared interests and any problems, then hand the issues over to their public servants. Article content Article content Diplomacy was developed so that the governments of countries that have real differences, that may be at war or drifting towards war, can communicate with each other frequently and safely. Then they can listen to each other, get a good understanding of the others' views instead of relying on rumours and the views of those who want confrontation, appreciate the dangers and seek solutions. Article content 'Punishing' a foreign government by refusing to talk to its leaders or expelling its ambassadors may satisfy some citizens, but our government was right to invite Modi to the G7, to have discussions with him, to keep most of them secret, and to restore high-level diplomatic relations. All it took was common sense, courage, and a phone call.
