First-Take On Almonty Earnings: "Sangdong Ramping, With First Cargo Loaded"

Résumé détaillé

First-Take On Almonty Earnings: "Sangdong Ramping, With First Cargo Loaded" Almonty Industries, a leading supplier of conflict-free tungsten to Western markets, reported…

Almonty Industries, a leading supplier of conflict-free tungsten to Western markets, reported third-quarter earnings below Wall Street expectations, but Bank of America analysts describe initial shipments from its Sangdong mine in South Korea as "ramping up well" and the first cargo loaded.

BofA metals and mining analyst Lawson Winder wrote in a note on Friday morning that while Almonty reported third-quarter earnings below forecasts, it delivered "substantial earnings improvement QoQ and YoY."

Almonty's flagship Sangdong Tungsten Mine in South Korea is seen as one of the world's largest and highest-grade tungsten deposits. Once fully operational, it is expected to account for over 80% of global tungsten production outside China, addressing the critical supply shortage in the West and supporting the upcoming rearmament supercycle.

Winder said work on Sangdong's second phase is underway, equipment has been ordered, and construction is scheduled to be completed in 2027. He noted that more than 90% of first-phase production is already contracted, providing a solid revenue outlook as the mine ramps up into next year.

"This and a strong balance sheet further de-risks the Sangdong project and positions the company well to execute its growth plans," the analyst said, adding, "ALM has been active on its share buyback program through to this quarter. We maintain our Buy rating given ALM's strong volume growth, relatively low-cost structure, and a solid balance sheet."

He described Almonty as one of two publicly traded Western producers and the only US-listed company in that group, offering investors exposure to elevated tungsten prices and efforts to diversify the West's critical material supply chains away from China.

Winder maintained his Buy rating with a 12-month price target of $24 a share.

Almonty, like the broader mining stocks, has been battered in the second half of the year by higher rates and a strong-dollar environment.

More broadly, VanEck's REMX rare earth and…

Début de l'article, extrait de ZeroHedge. Pour lire la suite, ouvrez l'article chez le média.