Diamond Equity Research Releases Update Note on Almonty Industries, Inc. (TSX: AII) (ASX: AII) (OTCQX: ALMTF)

/EIN News/ -- New York, May 21, 2025 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has released an Update Note Almonty Industries, Inc. (TSX: AII) (ASX: AII) (FWB: ALI) (OTCPK: ALMT.F). The update note includes detailed information on the Almonty Industries’ business model, services, industry overview, financials, valuation, management profile, and risks.

The full research report is available below.

Almonty Industries Update Note May 2025

 Highlights from the report include:

• Almonty Industries Secures Strategic Three-Year Offtake Agreement for Tungsten Oxide with Tungsten Parts Wyoming; Provides Predictable Revenue and Strengthens Strategic Alliances within U.S. and Allied Defense Networks: Almonty Industries Inc. recently announced a binding offtake agreement with Tungsten Parts Wyoming, Inc. (TPW), a prominent U.S.-based defense contractor, and Metal Tech (MT), an Israel-based tungsten processor, significantly enhancing its strategic position within the critical materials supply chain for U.S. defense applications. Under the agreement, TPW commits to purchasing at least 40 metric tons of tungsten oxide monthly from Almonty, exclusively for use in critical defense applications, including missiles, drones, and ordnance systems. MT will process the supplied tungsten oxide into tungsten metal powder in Israel or the U.S., exclusively for TPW’s defense production programs. Notably, the arrangement includes a hard floor price with no ceiling, providing revenue predictability and substantial upside potential. The initial term of the agreement spans three years from the commencement of deliveries, with provisions for automatic annual renewal thereafter. This offtake agreement is strategically significant for Almonty, ensuring predictable revenues and deepening its integration into defense-oriented supply chains. Management has highlighted the importance of securing long-term demand specifically tied to high-value defense programs, emphasizing the company's ability to align commercial interests with strategic national security priorities. It should be that that these substantial offtake commitments signal strong confidence in Almonty’s asset quality and operational delivery capabilities. Investors tend to place a premium on predictable revenues and consistent cash flows, making this agreement particularly valuable from a market valuation perspective. We view this development positively, as it further solidifies Almonty's competitive advantage in supplying critical materials to allied defense markets.
• Q1 2025 Financial Results Reflect Stable Revenue, Enhanced Mining Margins, and Elevated Non-Cash Charges: In the first quarter of 2025, Almonty Industries reported a 1.3% year-over-year revenue increase to $7.9 million, driven by higher tungsten concentrate pricing under long-term contracts. Income from mining operations rose significantly by 24.1% to $0.75 million, supported by favorable pricing dynamics and increased output at the Panasqueira mine. Operating expenses rose substantially to $9.5 million from $4.3 million in the prior year quarter, largely due to higher non-cash share-based compensation, losses related to the revaluation of embedded derivative liabilities, and increased expenditures associated with the company’s planned redomiciling. The company reported a net loss of $34.6 million, compared to $3.8 million in the prior-year period, primarily due to a non-cash loss of $25.8 million arising from the revaluation of warrant liabilities. Adjusted EBITDA came in at $(3.5) million compared to $(1.3) million in the same quarter of the previous year, reflecting a 169.2% increase on a non-IFRS basis. As of March 31, 2025, cash and cash equivalents totaled $16.9 million, up from $7.8 million at year-end 2024, primarily due to the receipt of $8.7 in equity placement proceeds and $3.3 million from the exercise of warrant, partially offset by ongoing investments in the Sangdong Project in South Korea. Post the quarter-end, Almonty secured an additional $3.6 million through further warrant exercises. 
• Valuation: The forthcoming commercialization of the high-grade Sangdong project, now construction-complete and in its final pre-production phase, is anticipated to serve as a key catalyst for Almonty’s growth trajectory and potential valuation re-rating. Strong operational performance at Panasqueira and a robust cash position of nearly $17 million provide a solid foundation for near-term execution. Strategic advancements, including a binding offtake agreement with a U.S. defense contractor and expanded partnerships with American Defense International and MZ Group, further reinforce Almonty’s position as a critical supplier within the allied tungsten value chain. Rolling over our financial model while incorporating the latest quarterly results and updated shares outstanding, we arrive at a valuation of $4.00 per share, contingent upon 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 set 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 05/22/25 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 05/22/2025. 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.

Contact:
Diamond Equity Research
research@diamondequityresearch.com

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• Almonty Industries Update Note May 2025