Almonty Industries (AII) 16th IIF - International Investment Forum summary

Strategic positioning and market overview

• Operations span Portugal, Spain, and South Korea, with a planned move of headquarters to the U.S. by early 2026.

• Sangdong in South Korea is set to become one of the world’s largest tungsten processing plants, with phase I production expected by end of 2024 and phase II expansion in 2026.

• Tungsten market is dominated by China, Russia, and North Korea, controlling nearly 90% of global supply, while Western access is increasingly restricted.

• U.S. and EU recognize the strategic importance of non-Chinese tungsten supply, with Sangdong acknowledged as a key solution to supply chain risks.

• Defense and technology sectors are driving demand, with tungsten prices recently surging above $600/MTU.

Project development and financial structure

• Sangdong’s phase I is fully financed, with a 15-year off-take agreement at a floor price, ensuring revenue stability and upside potential.

• Phase II will double throughput to 1.2 million tons, further increasing output and revenue.

• $90 million raised for a tungsten oxide facility to enhance value-added processing and margins.

• Molybdenum asset in South Korea is under active development, with a similar off-take structure and high-grade resource.

• Portugal serves as a knowledge hub, supporting technology and process innovation for global operations.

Geopolitical and industry trends

• China’s export restrictions on tungsten and U.S. bans on imports from China, Russia, and North Korea from 2027 heighten Western supply urgency.

• Western defense budgets are rising, with the U.S., Germany, France, U.K., and Japan all increasing military spending, boosting tungsten demand.

• Almonty’s strategic partnerships, including with American Defense International, provide access to key government and industry stakeholders.

• Off-take agreements focus on U.S., EU, and Japan, avoiding Chinese contracts to ensure conflict-free supply.

• Flexible contract terms in Portugal allow for annual renegotiation to capture best market prices.