Almonty extends tungsten offtake deal to 21 years with GTP

Almonty extends tungsten offtake deal to 21 years with GTP

US concludes third round of strikes against Iran after Trump reinstates blockade DILLON, Mont. - Almonty Industries Inc. (NASDAQ:ALM) (TSX:AII) (ASX:AII) announced today an amendment to its long-term offtake agreement with Global Tungsten & Powders LLC covering tungsten concentrate from its Sangdong Mine in South Korea, according to a press release statement. The amendment extends the contract term from 15 to 21 years from the date of first delivery and increases total contracted volumes by 40% to 4.41 million metric tonne units from 3.15 million MTU. Minimum contracted volumes are set at 210,000 MTU per year following ramp-up.

The revised pricing terms increase anticipated revenue per MTU by 6.3% for the contract duration. Almonty stated the amendment is expected to add approximately $30 million in annual revenue at current pricing, bringing total contract revenue to $490 million over the 21-year period at current pricing levels. The company, with a market cap of $377 million, reported revenue of $295.53 million over the last twelve months with strong revenue growth of 27%.

According to InvestingPro analysis, Almonty has been profitable over the last twelve months with earnings per share of $4.31. The agreement covers approximately 90% of Phase I tungsten concentrate production from the Sangdong Mine. The amendment follows the commencement of processing plant operations at Sangdong on July 1, 2026.

The contract does not include the company’s planned Phase II expansion or production from other Almonty operations. InvestingPro data suggests the stock is currently overvalued relative to its Fair Value, and the platform offers a comprehensive Pro Research Report on Almonty, one of 1,400+ US equities covered with detailed analysis and actionable intelligence. GTP, headquartered in Towanda, Pennsylvania, is part of Austria’s Plansee Group.

The partnership between Almonty and GTP began in 2018. "GTP and the Plansee Group have stood behind the Sangdong Mine since 2018, and this Amendment reflects both the strength of that partnership and what the Sangdong Mine’s conflict-free tungsten is worth in today’s market," said Lewis Black, Chairman, President and Chief Executive Officer of Almonty. Almonty describes itself as a producer of tungsten concentrate with operations in Portugal and projects in Spain and the United States.

In other recent news, Almonty Industries Inc. has begun processing operations at its Sangdong Mine in South Korea, transitioning the facility from development to revenue-generating production. The company reported that it started feeding stockpiled ore through its processing plant in June, producing tungsten concentrate. Almonty had stockpiled about 120,000 tonnes of ore with an average grade of 0.24% tungsten trioxide by the end of the first quarter and mined an additional 19,700 tonnes of development ore in the second quarter.

In financial developments, Almonty closed a $700 million convertible notes offering, including an over-allotment option for an additional $100 million. The notes carry a 2.25% interest rate, set to mature in 2031, and were offered in a private placement to qualified institutional buyers. Additionally, Almonty is advancing its molybdenum drilling at the Sangdong Molybdenum Project, having completed approximately 37% of a planned drilling program.

The assays received so far show grades similar to historical drill holes. These developments reflect Almonty’s ongoing efforts to expand its operations and secure financial backing for future projects.