Shares in commodity producers and defense companies are booming. Geopolitical conditions and structural long-term demand trends form the basis for a sustained positive climate. Almonty Industries stands out in particular as a leading global producer of the critical raw material tungsten. Demand from the defense, aerospace, high-tech and other strategic industries is growing massively worldwide, especially in the United States. The price of tungsten rose by over 160 per cent last year and continues its upward trend this year.
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Almonty Industries – New all-time high reflects unbeatable positioning
The shares of the US-based company reached a new all-time high a few days ago. This reflects outstanding developments and indicates the great potential that investors attribute to the Company. With the relocation of its headquarters to the United States and its listing on the Nasdaq, Almonty (TSX:AII) (NASDAQ:ALM) is gaining additional visibility and recognition on the capital market. Last year, extensive capital increases brought renowned US investors on board and gave Almonty strong financial power.
At the heart of Almonty is the Sangdong Mine in South Korea. In December of last year, the transition from the construction to the production phase was completed, and active mining began at the tungsten mine. Industrial-scale production will follow soon. The Company’s goal is to play an important role globally and cover at least 40 per cent of the total tungsten demand outside of China, which comes from North America, Europe, and Asia. Almonty has already signed several binding minimum offtake agreements, including long-term supply commitments for tungsten oxide for US defense applications.
The People’s Republic currently produces over 80 per cent of the world’s tungsten and restricts exports. In addition, the US has banned tungsten imports from China for defense procurement starting in 2027.
Last year, the price of tungsten rose by over 160 per cent and continues its upward trend this year. Tungsten has unique properties and is therefore essential for industries such as defense and high tech.
In addition, Almonty owns the Panasqueira mine in Portugal, the world’s longest continuously operated tungsten mine. Panasqueira is currently being expanded, with production set to increase through the development of higher-grade ore, which would significantly extend the mine’s life.
Last year, the Company positioned itself in the key US market with the acquisition of the Gentung Browns Lake tungsten project. The advanced project is located in the US state of Montana and is expected to go into production in the second half of this year.
In addition to tungsten production, Almonty is also pushing ahead with diversification and has initiated a large-scale drilling program to determine the mineral reserves of the Sangdong molybdenum project. Molybdenum is in high demand in the defense, energy, and industrial sectors.
Rheinmetall – Consolidation at a high price level
The shares of the German defense giant are currently consolidating at a high level in the EUR 1,800 range. Last year, the stock was one of the top performers on the German benchmark index. The average price target set by analysts is just under EUR 2,200, indicating upside potential of around 20 per cent. For the current fiscal year, experts are forecasting revenue of EUR 16 billion and profits of EUR 1.8 billion. By 2030, the Company has forecast revenues of EUR 50 billion with rising margins. Tailwinds are coming from the massive increase in defense budgets around the globe.
The latest data from the European Investment Bank (EIB) illustrates how strongly and broadly money is flowing into the defense sector. The institution announced that, in response to the geopolitical situation in 2025, it had invested four times as much in security and defense as in the previous year. A total of over EUR 4 billion was invested, accounting for almost 5 per cent of the EIB Group’s financing in the EU. According to its own information, the EIB, based in Luxembourg, is the world’s largest development bank and, as an EU institution, is responsible for long-term financing.
In recent trading days, talks between Rheinmetall and OHB attracted a great deal of attention, giving OHB’s shares a considerable boost. The Bremen-based satellite manufacturer and the defense contractor are in talks about a possible cooperation. According to media reports, the two companies plan to jointly bid for the German Armed Forces’ largest satellite project to date. The contract value could be up to EUR 10 billion.
TKMS – Stock market newcomer with top performance in 2026
The spin-off from the thyssenkrupp Group, which entered the stock market last October, published good news in the first trading month of the year, causing the share price to rise by around 50 per cent. This is certainly also good news for the parent company, which remains the largest shareholder with a 51 per cent stake.
The German manufacturer of submarines and naval vessels is currently valued at a good EUR 6 billion and recently delighted investors with the potential takeover of the German Naval Yards Kiel shipyard. In addition, there are plans to build six submarines worth EUR 8 billion in India. Germany and India recently announced their intention to cooperate more closely in the defense sector in the future. Analysts expect sales to rise to EUR 2.5 billion in the current fiscal year, with a slightly expanded operating margin.
Almonty Industries is the largest Western tungsten producer and the only US company currently mining tungsten. The Sangdong mine has geopolitical significance. In addition, the price of tungsten is rising inexorably. The stock is a core investment in the commodities sector. Rheinmetall and TKMS are benefiting from high and increasing defense spending.
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