Almonty Industries Secures Key Tungsten Supply Agreement

Almonty Industries Inc has finalized a long-term tungsten concentrate supply agreement with Wolfram Bergbau und Hütten AG (WBH), a Sandvik Group subsidiary. This agreement pertains to tungsten from the existing tailings at Los Santos Mine, Spain. It features a take-or-pay contract with a USD 3 million upfront payment for off-take rights and a set floor price linked to the tungsten market.

The agreement mitigates risks in restarting Los Santos by ensuring a dedicated customer prior to resuming production. This approach is crucial for smaller operations like Los Santos by stabilizing future cash flow and minimizing capital needs. Almonty's strategy mirrors its successful agreements at Sangdong, enhancing commercial risk management.

Importantly, Los Santos will initially target materials from previous mining periods, utilizing improved recovery technology. Analysts estimate a substantial potential stock increase, maintaining a strong Buy rating for Almonty.