Diamond Equity Research Releases Update Note on Almonty Industries, Inc. (TSX: AII) (ASX: AII) (OTCQX: ALMTF)
New York, Aug. 18, 2025 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has released an Update Note on Almonty Industries, Inc. (TSX:AII) (NASDAQ:ALM) (ASX: AII) (Frankfurt: ALI1). The update note includes detailed information on the Almonty Industries' business model, services, industry overview, financials, valuation, management profile, and risks.
The full update note is available below.
Almonty Industries Update Note August 2025
Highlights from the report include:
- Second Quarter 2025 Marked by Strategic U.S. Defense Offtake, Nasdaq Capital Market Listing, and Continued Advancement Toward Sangdong Mine Production: Almonty Industries delivered a quarter marked by meaningful operational progress, strategic positioning gains, and a reinforced financial platform to support the next stage of growth. A key development was the signing of a binding offtake agreement with Tungsten Parts Wyoming, Inc. and Metal-Tech Ltd. to supply a minimum of 40 metric tonnes of tungsten oxide per month exclusively for U.S. defense applications. This agreement not only secures long-term demand in a high-value end market but also emphasizes external confidence in the Company's asset quality and delivery capabilities. Almonty also received bipartisan recognition from the U.S. House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party for its role in strengthening U.S. critical mineral supply chains, with specific emphasis on the Sangdong mine's strategic significance. Post-quarter end, Almonty successfully completed an upsized U.S. public offering of common shares, raising US$90 million in gross proceeds and securing a Nasdaq Capital Market listing under the ticker "ALM." This strengthened balance sheet provides the resources needed to complete the ramp-up of the high-grade Sangdong mine and advance broader growth initiatives. With construction now complete and commissioning activities underway at Sangdong, initial production remains on track for the second half of 2025, positioning Almonty to potentially deliver material volume growth, enhanced cash flow visibility, and an expanded role in the global tungsten supply chain.
- Q2 2025 Financial Performance Impacted by Temporary Production Diversion and Non-Cash Revaluation Losses; Strong Cash Position and Post-Quarter Nasdaq Financing Strengthen Growth Outlook: Almonty reported revenue of $7.2 million for the second quarter of 2025, representing a 9.4% decline from $8.0 million in the same period last year. The decrease was primarily due to slightly lower tungsten concentrate sales and the temporary diversion of personnel to Level 4 preparation activities, which have since been completed, allowing production to normalize in the third quarter. Operating expenses rose sharply to $11.2 million from $2.5 million in the prior-year quarter, driven mainly by higher non-cash share-based compensation expenses and costs related to the Company's planned redomiciling. The Company recorded a net loss of $58.2 million for the quarter, compared to $1.8 million a year earlier, largely reflecting significant non-cash charges. These included a $38.1 million loss from the significant upward revaluation of warrants and a $6.9 million loss from the revaluation of embedded derivative liabilities. We note that these IFRS-required adjustments are non-cash in nature and do not affect operating cash flows. Adjusted EBITDA (non-IFRS) was negative $4.8 million versus breakeven in the same period last year. As of June 30, 2025, cash and cash equivalents totaled $24.7 million, up from $16.9 million at March 31, 2025. The increase was mainly due to $8.4 million in proceeds from warrant exercises, partially offset by ongoing investment in mining assets at the Sangdong Project in South Korea. Subsequent to quarter-end, Almonty further strengthened its balance sheet by raising US$90 million in gross proceeds from a public offering in the United States, positioning the Company to advance Sangdong towards commercialization and support broader growth initiatives.
- Valuation: The updated NI 43-101 technical report on Sangdong formalizes resources, reserves, and the Phase 1 mine plan, confirming project timelines, reducing technical uncertainty, and supporting a reduction in the project risk. This enhanced technical clarity is further supported by Almonty's long-term, floor-priced offtake agreements with established defense, aerospace, and high-tech customers, which provide strong cash flow visibility while leaving upside uncapped. At the same time, the sharp rise in tungsten prices through 2025 places spot levels well above contractual floors, significantly enhancing near-term EBITDA generation. Following its Nasdaq listing and an improved liquidity position, Almonty is well placed to broaden its investor base and strengthen access to growth capital. Collectively, these factors yield a de-risked operating profile and improved economic outlook, justifying a meaningful upward revision in Almonty's overall valuation. We have accordingly updated our valuation model to reflect the latest financial results and the recently concluded U.S. capital raise, arriving at an updated valuation estimate of $7.60 per share, contingent on successful execution by the company.
About Almonty Industries, Inc.
Almonty Industries Inc. is a global leader in tungsten mining, with strategically positioned assets in geopolitically stable regions including South Korea, Portugal, and Spain. The company is positioning to become the largest tungsten producer outside China upon the commissioning of its flagship Sangdong Mine.
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by Almonty Industries, Inc. for producing research materials regarding Almonty Industries, Inc. and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for research engagement. As of 08/18/25 the issuer had paid us $50,000 for our company sponsored research services, which commenced 03/07/2025 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 08/18/2025. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for Almonty Industries, Inc. Please review the updated report attached for full disclosure page.
Contact:
Diamond Equity Research
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