Stock of Almonty poised for a significant surge!
The global defense industry is currently experiencing a significant boom, with one key player, Almonty, gaining attention due to a series of strategic moves and positive developments.
Recent investor interest in Almonty can be attributed to a surge of over 100% in tungsten prices, the impending start of production at the Sangdong mine in South Korea in the second half of 2025, the company's inclusion in the TSX30 ranking of top Toronto Stock Exchange stocks, the lifting of US import tariffs on tungsten, and significant contracts in the critical minerals sector.
Adding to this momentum, Almonty has successfully completed its Initial Public Offering (IPO) on Nasdaq, further solidifying its position in the market.
However, the landscape of tungsten procurement is set to change with the U.S. Department of Defense issuing a regulation that will ban the procurement of tungsten from certain countries starting January 1, 2027. This regulation could have significant implications for raw material procurement in the U.S. defense industry.
Under this regulation, tungsten cannot be procured if any part of its production took place in certain "covered countries." This new rule is aimed at ensuring the security of supply chains for this critical raw material, used extensively in defense applications.
As a result, companies that can source tungsten outside of traditional sources are gaining attention. The strategic value of tungsten suppliers aligned with the West is increasing, with Almonty being mentioned more frequently in this context.
Tungsten, a critical raw material for defense applications, is at the centre of this development. The ability to secure reliable and ethical sources of tungsten will be crucial for companies operating in the defense sector, particularly those based in the U.S.
In light of these changes, the focus on Western tungsten suppliers is expected to intensify, with companies like Almonty likely to play a significant role in meeting the growing demand for this critical material.
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