Almonty Industries Maintains 'Buy' Rating Amid Strong Tungsten Demand

DA Davidson has reaffirmed a 'Buy' rating on Almonty Industries (ALM) with a $7 price target. Despite Q2 sales decreasing 9.4% YoY to $7.2 million and a net loss of $58.2 million, the company's Panasqueira mine remains well-positioned for steady tungsten output and Sangdong mine is on track for initial production in H2 2025.

Toronto – July 2, 2025 – Almonty Industries Inc. (NASDAQ: ALM) reported its second quarter 2025 financial results, showcasing a mix of strategic advancements and financial challenges. Despite a 9.4% year-over-year (YoY) decline in revenue to $7.2 million and a net loss of $58.2 million, the company's Panasqueira mine remains a reliable cornerstone for steady tungsten output. The Sangdong mine, a flagship project in South Korea, is on track for initial production in the second half of 2025.

Key highlights of the second quarter include a hard floor offtake agreement with Tungsten Parts Wyoming, Inc. and MetalTech Ltd. to supply tungsten oxide for U.S. defense applications, and an invitation to participate in the U.S. Critical Minerals Forum. Additionally, Almonty successfully listed on the Nasdaq Capital Market and appointed respected national security thought leader Alan Estevez to its Board of Directors.

Operating expenses in the second quarter totaled $11.2 million, up from $2.5 million in the same year-ago quarter, primarily due to increased non-cash share-based compensation expense and costs associated with the company's proposed redomiciling. The net loss was driven by a non-cash revaluation of warrant and derivative liabilities, reflecting the increase in the company's stock price.

DA Davidson has reaffirmed a 'Buy' rating on Almonty Industries with a $7 price target, citing the company's strategic initiatives and the potential of the Sangdong mine. Despite the challenges, Almonty's strong cash position, with $24.7 million as of June 30, 2025, and subsequent US$90 million raised from a public offering, positions the company well for future growth.

References:
[1] https://almonty.com/second-quarter-2025-financial-results/