Almonty Posts C$41.9 Million Revenue as Sangdong Ships First Tungsten

Almonty Industries posted C$41.889 million in third-quarter revenue as its Sangdong mine in South Korea produced tungsten concentrate for the first time since 1993 and sent a container toward a customer.

Revenue was 382% higher than the C$8.695 million recorded a year earlier. Almonty attributed the increase to higher tungsten prices. The European APT average price was US$2,800 per metric tonne unit, compared with US$615 in the year-earlier quarter. Financial figures are in Canadian dollars unless otherwise noted; tungsten prices are in U.S. dollars.

Net income for the three months ended Sept. 30 was C$50.235 million, or C$0.17 per diluted share. It included C$47.9 million in net noncash gains from revaluing derivative and warrant instruments. Those gains did not affect operating performance, cash flow or liquidity. Adjusted EBITDA, a non-IFRS measure, was C$14.586 million, compared with a C$2.285 million loss a year earlier. Cash and cash equivalents totaled C$1.149 billion as of Sept. 30.

In September, Sangdong produced tungsten concentrate for the first time since 1993, marking a new stage in the mine’s restart. After the quarter ended, the first container was loaded at the port of Busan for shipment to an overseas customer. Lewis Black, Almonty’s chairman, president and CEO, said Oct. 25 that a container had left Sangdong for a customer that weekend.

“The third quarter was the quarter Sangdong became a commercial operation,” Black said. A long-term contract with Global Tungsten & Powders, part of Austria’s Plansee Group, covers more than 90% of Sangdong’s Phase I production.

Almonty is targeting completion of Phase II in 2027. The expansion is expected to raise throughput capacity to as much as 1.2 million tonnes a year, subject to Phase I performance and market conditions.