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Almonty Industries Stock Rallies on Tungsten Supply Agreement with Sandvik Subsidiary

ENTHMSVIIDZHZH-TWJAKOHI
Sep 17, 20261 min read
Almonty Industries Stock Rallies on Tungsten Supply Agreement with Sandvik Subsidiary

Summary

Shares of Almonty Industries rebounded sharply after the company announced a long-term offtake agreement for tungsten concentrate from its Los Santos Mine in Spain, snapping a six-day losing streak.

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Background

Almonty Industries stock climbed 3.9% in pre-market trading after the company secured a long-term, take-or-pay supply agreement with Wolfram Bergbau und Hütten AG (WBH), a subsidiary of the Swedish industrial firm Sandvik Group.

Agreement Details

The deal covers the supply of tungsten concentrate from the retreatment of existing tailings at Almonty's Los Santos Mine in western Spain. According to the announcement, the agreement includes several key terms:

  • A minimum supply of approximately 1,720 tonnes of contained tungsten trioxide (WO₃).
  • A conditional upfront payment of $3.0 million to Almonty.

This contract is expected to provide a significant layer of revenue visibility for the company's Spanish operations.

Market Context and Stock Performance

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The news triggered a sharp reversal for Almonty's shares, which had fallen for six consecutive sessions, shedding roughly 30% of their value. The stock's recovery was also supported by a broader market rally, with the S&P 500 gaining 1.3% and the NASDAQ Composite advancing 1.7%, boosting investor appetite for materials and critical minerals stocks.

Almonty is known for its high beta profile, meaning its stock price tends to be more volatile than the broader market. This characteristic helps explain the magnitude of the rebound, as the stock amplified both the positive company-specific news and the favorable macroeconomic backdrop. Shares traded as high as $14.41 during the session.

Strategic Significance

This agreement reinforces Almonty's strategic position as a key supplier of tungsten to Western industrial users outside of China. Demand for non-Chinese sources of critical minerals has grown amid geopolitical constraints on supply from the world's dominant producer.

The deal adds to a series of positive fundamental developments for the company, including a previously announced $300 million share buyback program and a growing offtake pipeline from its main Sangdong mine in South Korea.

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