The Almonty share is becoming the focus of major investors due to the global tungsten shortage. With the Sangdong mine, the company is strategically positioning itself against China’s dominance.
• Global tungsten shortage drives prices and investor interest
• Sangdong mine starts production in critical market phase
• Analysts see further price potential despite strong rally
Institutional investors are rediscovering Almonty
The Almonty share is currently benefiting from a structural bottleneck in the raw materials market. According to Stock World, tungsten in particular is becoming the focus of institutional investors as the global supply situation has worsened significantly. The background to this is stricter export controls from China, which are further increasing the already high market concentration. China, Russia and North Korea control around 95 percent of global supply, making alternative sources of supply increasingly important.
In this environment, funds are expanding their positions. The number of institutional investors has recently increased significantly, while Van Eck Associates, for example, expanded its participation. It is clear to market participants: anyone who offers access to tungsten outside the Chinese sphere of influence could be one of the key beneficiaries of the current development.
Sangdong mine as a strategic turning point
With the commissioning of the Sangdong mine in South Korea, Almonty has taken a decisive step. As a company statement shows, the completion of the processing plant marks the transition from the development project to operational operations. The mine is considered one of the most important tungsten projects in the world and, at full capacity, is expected to cover a significant portion of demand outside of China.
The first expansion stage is designed to process around 640,000 tons of ore annually. In the future, a second phase is intended to significantly increase production capacity. Almonty is hitting the market at a time when existing industry inventories are only available to a limited extent, according to Stock World.
US project increases geopolitical relevance
At the same time, the company is pushing ahead with its expansion in North America. According to IT Boltwise, the Gentung project in Montana is expected to enable the resumption of US tungsten production. This is becoming particularly important in light of new US regulations that require defense companies to rely on non-Chinese suppliers in the future.
This opens up the opportunity for Almonty to play a key role in Western supply chains. The company’s strategic importance goes beyond pure raw material extraction and is increasingly being interpreted in geopolitical terms.
Price rally with a short-term breather
This dynamic is also reflected on the stock market: on Easter Monday, the share price rose by 8.27 percent to $16.63, continuing its recent rally. Things are going down on Tuesday: In NASDAQ trading, Almonty shares temporarily fell 1.74 percent to $ 16.34.
The share price has already risen massively over the last twelve months. At the same time, analysts remain optimistic: According to TipRanks, positive assessments clearly predominate with five buy recommendations and only one hold rating. The average price target is $21.33, signaling further upside potential.
Benedict Kurschat, Evelyn Schmal, Martina Köhler, editorial team finanzen.net
Selected leverage products on Almonty Industries
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on Almonty Industries
The leverage must be between 2 and 20
Advertising
