- Almonty Industries (TSX:AII), a tungsten producer in Portugal and soon to be South Korea, signed a binding three-year offtake agreement with Tungsten Parts Wyoming, a US defense contractor, and Metal Tech, a tungsten processor in Israel
- The company will supply 40 tons of tungsten oxide per month for US defense applications
- Almonty is a global provider of tungsten concentrate in conflict-free regions
- Almonty stock has added 262.50 per cent year-over-year and 337.74 per cent since 2020
Almonty Industries (TSX:AII), a tungsten producer in Portugal and soon to be South Korea, signed a binding three-year offtake agreement with Tungsten Parts Wyoming (TPW), a US defense contractor, and Metal Tech, a tungsten processor in Israel.
TPW will purchase a minimum of 40 metric tons of tungsten oxide per month to be used in missile, drone and ordnance systems. Metal Tech will process this tungsten oxide into metal powder in Israel or the United States according to TPW’s specifications.
According to Wednesday’s news release, the agreement includes a competitive hard-floor price, subject to grade-specific adjustments, but has no cap on the upside.
Deliveries will begin when Almonty reaches commercial tungsten oxide production in 2027-2028, as per the company’s investor presentation dated April 2025.
Leadership insights
“This binding offtake agreement represents a significant milestone for Almonty, securing both predictable revenue through a defined hard-floor price and long-term demand tied directly to US defense programs,” Lewis Black, Almonty’s chief executive officer, said in a statement. “Beyond commercial certainty, the agreement ensures that our tungsten oxide will serve a strategic, high-value end-use – reinforcing Almonty’s position as the key upstream supplier to the defense supply chain of the US and its allies. It reflects our broader commitment to aligning production with national security priorities, while delivering sustainable value to my fellow shareholders and is another customer of Almonty who is happy to commit to our hard-floor pricing terms as a condition of supply.”
About Almonty Industries
Almonty is a global provider of tungsten concentrate in conflict-free regions, including from its producing Panasqueira mine in Portugal and its Sangdong mine in South Korea, which is slated to begin operations in 2025. The company is also focused on its Valtreixal tin-tungsten and Los Santos tungsten development projects in Spain.
Almonty stock (TSX:AII) last traded at C$2.32. The stock has added 262.50 per cent year-over-year and 337.74 per cent since 2020.
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