| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 10.40 | 259 |
| Intrinsic value (DCF) | 0.31 | -89 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Almonty Industries Inc. (ALI.DE) is a Toronto-based mining company specializing in the extraction, processing, and shipment of tungsten concentrates. Operating in the Industrial Materials sector, Almonty owns key projects such as Los Santos, Valtreixal, Almonty Korea Tungsten, Almonty Korea Moly, and Panasquiera. Tungsten is a critical industrial metal used in high-performance alloys, electronics, and defense applications, positioning Almonty as a strategic player in the global supply chain. The company focuses on high-grade deposits and sustainable mining practices, catering to industries requiring durable and heat-resistant materials. With a market cap of approximately €432.9 million, Almonty is listed on the Deutsche Börse (XETRA) and plays a vital role in the Basic Materials sector, particularly in securing tungsten supply outside dominant Chinese production. Investors eyeing exposure to specialty metals and industrial minerals should consider Almonty’s niche market presence and long-term growth potential.
Almonty Industries presents a high-risk, high-reward investment case due to its focus on tungsten, a critical but volatile commodity. The company reported a net loss of €14.49 million in FY 2022, with negative operating cash flow (-€5.57 million) and significant capital expenditures (-€22.76 million), reflecting ongoing project development costs. However, its €84.42 million cash reserve and strategic projects in South Korea (Almonty Korea Tungsten) could position it for future profitability as tungsten demand rises in high-tech and defense sectors. The stock’s beta of 1.108 suggests higher volatility than the market, appealing to speculative investors. Key risks include reliance on commodity prices, geopolitical factors (given tungsten’s supply chain sensitivity), and execution challenges in ramping up production. Long-term investors may find value if Almonty achieves operational scale and benefits from global tungsten supply diversification.
Almonty Industries competes in a concentrated tungsten market dominated by Chinese producers, leveraging its non-Chinese assets to appeal to Western buyers seeking supply chain diversification. Its competitive advantage lies in owning high-grade deposits (e.g., Los Santos) and strategic projects like Almonty Korea Tungsten, which benefits from proximity to Asian industrial demand. Unlike larger diversified miners, Almonty’s pure-play tungsten focus allows targeted expertise but exposes it to commodity price swings. The company’s small scale limits economies of scale compared to giants like China Tungsten and H.C. Starck, but its niche positioning avoids direct competition with diversified majors. Almonty’s debt (€89.48 million) is a concern, but its projects’ strategic value could attract partnerships or off-take agreements. Competitors often have broader mineral portfolios, whereas Almonty’s specialization could be a differentiator if tungsten demand grows in EVs and aerospace. Operational execution and cost management will be critical to withstand pricing pressures from Chinese producers.