Allied Critical Metals: Pioneering Western Tungsten Production Amid Global Supply Shifts

The global tungsten market, dominated by China and Russia at 90% of supply, faces growing scrutiny over geopolitical risks and sustainability concerns. Amid this landscape, Allied Critical Metals Inc. (ACM:CSE) emerges as a strategic player with its 100% owned Borralha and Vila Verde tungsten projects in Portugal. Recent financing, prioritized exploration milestones, and alignment with ESG standards position ACM to capitalize on rising demand for conflict-free, Western-sourced critical minerals. Here's why investors should take notice.

Financing for Near-Term Momentum

In mid-2025, ACM raised $4.6 million through a concurrent financing, strategically allocated to advance its projects. The capital prioritizes the Borralha project, a brownfield site with past production, over Vila Verde, aiming to fast-track a preliminary economic assessment (PEA) or prefeasibility study (PFS) by summer 2025. Drilling at Borralha began in late May 2025, with Phase 1 and 2 exploration targeting completion by August. This timeline is critical: a robust PEA could unlock project financing, partnerships, or a jump in valuation.

Rising tungsten prices—up 25% to $400/MTU by early 2025—bolster ACM's prospects. The company's stock, listed on the Canadian Securities Exchange (CSE) since April 2025, is also trading on the Frankfurt Stock Exchange (symbol: 0VJ0), enhancing European investor access. This dual listing aligns with ACM's goal to attract capital ahead of the PEA/PFS results.

ESG Alignment and Listing Strategy

While the CSE's Senior Tier—designed for non-venture issuers with robust governance and ESG practices—is not explicitly confirmed for ACM, the company's actions align with its criteria. Portugal's regulatory environment and ACM's focus on environmental stewardship (e.g., leveraging brownfield sites to minimize ecological impact) underscore its ESG orientation. The Frankfurt listing further signals ACM's commitment to transparency and investor diversification, key pillars of ESG credibility.

Technical Expertise and Capital Efficiency

ACM's management team, including new CFO Sean Choi (with 19+ years in mining finance), emphasizes disciplined capital allocation. For instance:
- Drilling costs for Vila Verde may be partially settled in shares, preserving cash for Borralha's higher-priority work.
- Investor relations expenses ($885k fixed + $15.5k/month variable) aim to amplify ACM's profile ahead of the PEA/PFS.
This approach prioritizes near-term milestones while maintaining financial flexibility—a stark contrast to peers that overextend.

Market Opportunity and Risks

Why tungsten?
- Defence and energy sectors rely on tungsten for high-stress components, with no substitutes.
- Geopolitical tensions are accelerating demand for non-Chinese/Russian supply chains.

Risks to monitor:
- Funding shortfalls, though ACM claims current capital suffices for 12 months.
- Drilling delays or PEA/PFS outcomes that fail to meet expectations.

Investment Considerations

ACM presents a high-risk, high-reward opportunity for investors focused on critical minerals. Key catalysts include:
1. PEA/PFS results (Q3 2025): A positive outcome could attract project financing or a strategic buyer.
2. Tungsten price trends: Sustained demand from EVs, aerospace, and renewables may further elevate prices.

Recommendation:
Consider a speculative position in ACM for investors with a 12–18 month horizon, weighted toward the PEA/PFS outcome. Pair this with close monitoring of tungsten price movements and ACM's exploration progress. The company's focus on becoming a Western tungsten leader aligns with global supply chain diversification trends, making it a compelling play on critical minerals' strategic importance.

In a world hungry for reliable critical mineral sources, Allied Critical Metals is betting big on Portugal—and the data suggests the bet is well-timed.