Almonty revenue jumps 382% to C$41.9 million in third quarter
Key Facts
Almonty Industries said on November 12 that its revenue in the third quarter of 2026 rose 382% to C$41.9 million, compared with C$8.7 million in the same period of 2025. The company said the average European ammonium paratungstate price rose to US$2,800 per metric ton unit (MTU), from US$615 in the comparable quarter. The results followed the first tungsten concentrate produced at the Sangdong mine in South Korea in September, the first production at the site since 1993. The quarter thus combined a sharp increase in revenue with the start of production at the mine, while the production start was announced in results released later in November. The performance puts higher prices and the mine’s entry into operations at the center of the company’s results.
Higher sales flowed through to mining operations income, which reached C$26.0 million, or 62.0% of revenue, in the third quarter. In the same period of 2025, this income was C$1.3 million, equivalent to 14.4% of revenue. The company said the average European tungsten price rose from US$615 per MTU in the third quarter of 2025 to US$2,800 in the third quarter of 2026. The comparison shows that the improvement in mining income coincided with revenue growth and a higher product price over the year. The measure also distinguishes the result of mining operations from net income, which included non-cash gains.
Almonty’s net income in the third quarter was C$50.2 million, or C$0.17 per diluted share, compared with C$33.2 million and C$0.13 per share in the third quarter of 2025. However, 2026 results included net non-cash gains of C$47.9 million from the revaluation of derivative and warrant instruments. On another operating measure, adjusted earnings before interest, taxes, depreciation and amortization turned to C$14.6 million, after an adjusted loss of C$2.3 million in the comparable period. These figures separate the increase in net income from the accounting gains that contributed to it. Adjusted earnings also show a shift from a loss to a profit over the year.
Cash stood at C$1.15 billion on September 30, 2026, compared with C$268.4 million on December 31, 2025. The company attributed the increase mainly to gross proceeds of US$800 million from a convertible note offering in June, in addition to operating cash flows. This balance gives the company resources to fund its operations and projects, with a large part financed through the note offering. In an earlier shareholder update, Almonty said proceeds from the offering had left it with C$1.2 billion in cash, according to its second-quarter results. The cash balance at the end of September reported in the third-quarter results was C$1.15 billion.
Commercial operation of the Sangdong processing plant had received inspection certificates on September 17, allowing the facilities to operate commercially and sell tungsten concentrate. In late September, the company said the mill was running 13 hours a day, seven days a week, and that it aimed to increase operations to 24 hours a day. The mine then produced its first tungsten concentrate in September, before the first container of concentrate was loaded at the Port of Busan after the quarter ended for shipment to an overseas customer. The site’s previous tungsten production dated to 1993. These steps mark a sequence from facility approval to operations, production and then shipment, with the results announcement following the start of production.
Almonty said more than 90% of first-phase production at Sangdong is covered by a long-term supply agreement with Global Tungsten & Powders, a subsidiary of Austria’s Plansee Group. In July, the company amended the agreement to run for 21 years from the first delivery, with a total contracted volume of 4,410,000 MTU of tungsten concentrate. The contract includes a minimum annual amount of 210,000 MTU after operational expansion is reached. At full operation, the first phase is expected to process about 640,000 tonnes of ore a year. The announced contracts provide some visibility into demand for first-phase production, while the minimum annual volumes are tied to reaching operational expansion.
The company aims to complete the second phase in 2027, raising processing capacity to up to 1.2 million tonnes a year, subject to first-phase performance and market conditions. It said U.S. defense procurement rules will scrutinize where tungsten ore is mined starting January 1, 2027. These dates link the company’s expansion plans with an upcoming review of ore sources in U.S. defense procurement. In its second-quarter results, the company had said the June convertible note offering, which raised US$800 million, left it with a cash balance of C$1.2 billion. At the end of September, it reported cash of C$1.15 billion, attributing the increase from year-end 2025 mainly to the offering proceeds and operating cash flows.