Almonty Industries (ALM) CEO Lewis Black: Tungsten Offtake, Sangdong Ore Processing & Pricing

Overview

Almonty Industries CEO Lewis Black provides an update on major developments centered on the Sangdong tungsten project, broader project financing flexibility, and the tungsten pricing and supply outlook. He argues that demand is rising while new supply remains scarce.

Key Developments

Offtake contract extension as a “de-risking” signal

• Almonty expanded an existing offtake agreement with Plansee GDP, paired with POSCO/Korean demand.
• The deal was extended from 15 to 21 years, with improved pricing/terms for additional quantity and duration.
• Black interprets the extension as evidence that:
  1. There is no material competing tungsten supply coming to market.
  2. The offtaker is confident in Sangdong’s long-term operational longevity and capacity.
• He emphasizes the relationship is “fair and equitable” for both parties.
• The contract also supports long-term supply into the U.S. defense supply chain, through Plansee GDP’s role in penetrators.

Sangdong processing ramp and timing of financial impact

• Processing has commenced at Sangdong and is now in ramp-up.
• Initial operational issues are being addressed as the system stabilizes.
• Almonty expects financial impact to become clearer over time:
  • Q2 should reflect ramping Korean output alongside Portugal operations.
  • Q3 should begin to show a more transformative revenue contribution as Sangdong’s output meaningfully factors in.

Offtake coverage and project design resilience

• The Korea offtake covers ~45% of outputs.
• Black describes the design as resilient:
  • The offtake acts as a baseline “floor.”
  • Additional production is described as “cream.”
• He argues the project did not rely on overperformance (e.g., “110%”) to make sense.

Molly (neighboring) project drilling and financing pathways

• Drill work is progressing, with confirmation drilling described as robust.
• Plans include:
  1. Completing the mine plan toward the end of summer.
  2. Disclosing financing from Korean sources (along with related steps such as conversion/financing effects previously discussed).
• Black highlights a favorable convertible instrument structure (including a fixed rate), aiming to provide strategic funding optionality without immediate dilution—helping improve negotiations with government stakeholders.

Capital availability and growth strategy

• After having nearly $1B USD in cash, Black says discussions with the Korean government focus more on growth opportunities than on securing money under pressure.
• Near-term strategy is framed as waiting for opportunities rather than forcing actions, referencing Buffett’s idea of holding cash until “blood in the streets.”
• He also indicates interest in downstream partnerships/M&A and alliances with major tungsten consumers/industrial players rather than going it alone.

Montana project update (U.S.)

• Black characterizes Montana as “slow and steady”, emphasizing the realities of permitting and environmental review.
• He disputes expectations of rapid startup:
  • Full underground mine value could take ~3–4 years to “come into its own.”
  • He references a ~4-year conservative stance.
• Earlier small production may occur from mine tails.

Tungsten Market Outlook

• Black argues the market remains supportive because demand is not being destroyed, but supply is constrained.
• He expects the imbalance to persist until China’s recycling program matures, projected at 5–6 years.
• Western recycling capability has been more mature since around 2008, partly due to reduced access to Chinese material.
• China is expanding recycling capacity now after changes to environmental constraints.
• He notes:
  • Scrap is already more expensive than primary tungsten.
  • Competition is effectively “every man for himself” because:
    • Western producers cannot “shop in China,”
    • while China can access Western scrap/streams.

Almonty’s Positioning in the Sector

• Black presents Almonty as a technically disciplined company with deep tungsten processing expertise—positioned to endure even in low-price environments.
• He emphasizes a data-driven evaluation approach and says Almonty tests whether projects can work under conservative tungsten pricing assumptions.
• He repeatedly invites “half-decent” tungsten projects to contact Almonty for funding and technical help, implying that fewer inquiries may reflect concerns about quality in the junior pipeline.

Near-Term News Flow Expectations

• Phase two in Korea is underway.
• First shipments/first material (referenced as 100 units) are expected by end of year, though not completion.
• Other updates expected during the year include:
  • Mine planning for Molly
  • Infrastructure/site groundwork milestones
  • Possible downstream partnership developments

Presenters or Contributors

• Lewis Black — CEO, Almonty Industries
• Martin Gagel — Market Radius Research