Is tungsten the new precious metal? In terms of price performance, this critical raw material is easily outshining gold and silver. The price of the metal – coveted by governments, defense contractors, tech companies, and many others – has surged by more than 100% this year alone. Prices have now climbed to over USD 2,200 per MTU, compared to below USD 400 a year ago. The biggest beneficiary of this epic rally is Almonty Industries. The tungsten producer invested early in new mines and is now ramping up production. With the new mine in South Korea, the company will soon be able to cover around 40% of global demand outside of China. The company released an update yesterday, and analysts expect a surge in both revenue and profits.
This article is disseminated in partnership with Apaton Finance GmbH. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Epic Tungsten Rally: Price Already Over USD 2,200
The rally in tungsten shows no signs of slowing down. On the contrary, it is likely to be further fueled by the war in Iran. There, over USD 1 billion per day is likely being spent on bombs, missiles, drone defense, and related equipment. Ammunition stockpiles are depleting rapidly. To replenish them, the particularly hard tungsten is essential. Last Friday, around USD 2,250 per MTU (metric ton unit, equivalent to 10 kg) of the rare raw material was paid on the Rotterdam trading floor. At the beginning of 2026, the price was around USD 900, and a year ago it was well below USD 400.
Almonty (TSX:AII) (NASDAQ:ALM) CEO Lewis Black has commented on the tungsten rally on several occasions. In his view, the price is “merely” catching up to what China had prevented through decades of subsidies. To force Western producers out of the market for this critical metal, the price was kept artificially low. However, the subsidies also made Chinese mines inefficient. Meanwhile, the government there can no longer afford the subsidies, and some producers are facing difficulties. Therefore, he sees the price remaining above USD 2,000 in the long term.
The New Tungsten Champion
Almonty is the big winner in this development. While producing tungsten at a relatively small mine in Portugal and optimizing its operations, the company spent years revitalizing the Sangdong mine in South Korea. This was formerly one of the largest tungsten mines in the world and was shut down in the 1990s due to low prices. After Almonty invested over USD 100 million, the exceptionally hard metal has been mined there again since late 2025. And so efficiently that the company would still make a good profit even at USD 400 per MTU. Sangdong is expected to have a mine life of more than 45 years. The average ore grade is around 0.51% tungsten trioxide, which is about three times higher than the global average.
Almonty announced yesterday that Phase 1 of the Sangdong tungsten mine has been successfully commissioned. This will initially process around 640,000 tonnes of ore annually, yielding approximately 2,300 tonnes of tungsten concentrate per year. Production is set to double as early as next year as part of Phase 2. At full capacity, Sangdong is expected to meet around 40% of global tungsten demand outside of China in the future. The official commissioning ceremony is taking place on-site today. More than 200 political representatives from South Korea and the US are expected to attend. Incidentally, a large portion of the production will be shipped to the US. The world’s largest weapons manufacturer is, in fact, 100% dependent on imports of this critical metal. Almonty also aims to change this soon and plans to bring a mine in the US state of Montana into production before the end of the current year.
At the same time, Almonty is expanding Sangdong with a tungsten oxide processing plant and developing the adjacent molybdenum deposit. This will create a fully integrated value chain for strategic minerals there. It also meets the upcoming procurement requirements of the US Department of Defense, which stipulate that tungsten supplies must come from sources other than China starting in 2027.
Revenue and Profit Are Set to Skyrocket
The ramp-up of production, coupled with an unabated rally in tungsten prices, is expected to cause Almonty’s revenue and profit to skyrocket in the coming years. According to the latest study by Cantor Fitzgerald, Almonty will more than tenfold its revenue to CAD 472.3 million in the current year. Next year, revenue is projected to reach CAD 1.2 billion. Earnings per share are expected to nearly triple from CAD 1.16 this year to CAD 3.21 by 2027. Given yesterday’s share price of around CAD 27.40, the P/E ratio for 2027 is below 10. Thus, the stock still does not appear to be overpriced. Especially since analysts traditionally factor in a discount to the current tungsten price in their studies.
Conclusion: The Stock Does Not Appear Overpriced
Almonty is making history and has clearly established itself as the tungsten champion. Following investments of over USD 100 million, tungsten production has resumed at the Sangdong mine. Thanks to Almonty, the critical metal will soon be produced again in the United States for the first time in decades. The mine in Portugal is also being expanded. Even after the price surge, the stock does not appear to be overpriced. The rally in tungsten and Almonty shares does not seem to be over yet.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as “Relevant Persons”) currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a “Transaction”). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
In this respect, there is a concrete conflict of interest in the reporting on the companies.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is also a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.