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Diamond Equity Research, a equity research firm with a focus on small capitalization public companies has released an Update Note on Almonty Industries, Inc. (TSX: AII,OTC:ALMTD) (NASDAQ: ALM) (ASX: AII) (Frankfurt: ALI1). The research summary below is from a report commissioned by Almonty Industries, Inc. and produced by Diamond Equity Research. The update note includes detailed information on the Almonty Industries' business model, services, industry overview, financials, valuation, management profile, and risks.
Almonty Industries Update Note November 2025
Highlights from the report include:
- Almonty Launches New Drilling Program at Panasqueira Mine to Expand Resource Base and Extend Mine Life: Almonty Industries has commenced a large-scale drilling program at its long-producing Panasqueira Mine in Portugal, aimed at increasing annual tungsten output and extending the mine's operational life. The campaign focuses on defining the mine plan for expansion into Level 4, a new production zone building on prior exploration work confirming mineralized veins in the area. The program includes surface and underground diamond drilling totaling approximately 14,000 meters over a 12-month period, using three rigs and representing an investment of about €2.5 million. Management highlighted that data from this drilling will enable an update to Panasqueira's resource model, the calculation of new inferred resources, and refined production planning. The expansion into Level 4 is expected to support long-term operational continuity and optimize output amid robust global tungsten demand. In our view, with favorable pricing dynamics and rising industrial demand across allied markets, the Panasqueira program aligns with Almonty's broader strategy to reinforce its position as a leading non-Chinese tungsten supplier and secure long-term resource stability for key end markets.
- Pricing Tailwinds and Steady Mine Output Fuel Topline Gains with Cash Build Supporting Future Execution: Stronger APT pricing improved Panasqueria unit economics in Q3 FY2025 and supported higher consolidated revenue. Quarterly revenue increased to C$8.69 million compared to $6.79 million in Q3 2024, while year-to-date revenue totaled $23.79 million despite lower mine production. Production declined 14.8% in the quarter and 10.4% year to date due to operational reallocation following a temporary diversion of resources to Level 4 in Q2 and the resulting lower grade and fewer active faces. Shipments increased 1.0 percent in the quarter but fell 17.8% year to date. Mine production costs were C$6.9 million or 79.5% of revenue compared to 82.5% last year. Income from mining operations rose to C$1.25 million, and the gross margin widened to approximately 14.4% from 9.65% in the same quarter of the previous year. General and administrative expenses increased significantly to C$3.67 million in Q3 2025, up from C$1.33 million in Q3 2024, reflecting legal and shareholder communication costs for the planned U.S. domestication. Below the operating line, the company reported a foreign exchange gain of C$3.34 million, reflecting Canadian dollar strength against the U.S. dollar and the Euro. Additionally, the company reported a significant non-cash gain of C$34.51 million on warrant revaluation, reflecting a sharp increase in share price. These movements resulted in reported net income of C$33.19 million, or C$0.15 per share, for Q3 2025. Liquidity strengthened materially, with cash and cash equivalents of C$111.6 million as of Q3 2025, primarily due to the receipt of US$90 million of gross proceeds from the July 2025 U.S. public offering.
- Valuation: Almonty's investment case has advanced meaningfully in 2025, led by the Sangdong tungsten mine, where construction is now substantially complete and ramp-up activities are underway ahead of final commissioning and commercial production. The project's progress is complemented by multiple key developments that can materially enhance the company's value proposition. Almonty's acquisition of the Gentung Browns Lake tungsten project in Montana broadens the pipeline and adds North American optionality. A new, targeted drilling program at Pansqueria focuses on Level 4, supporting mine-plan definition, potential life extension, and future throughput. These advances are further amplified by a profound rise in APT prices throughout 2025, reaching multi-year highs of around $580-$645/mtu. Industry analysis further indicated a structurally higher $400-$450/mtu range as new floor levels over the coming years, reflecting tight non-Chinese supply, policy-driven reshoring, and defense demand. Moreover, the recent Nasdaq uplisting reduces the market liquidity risk, while the July 2025 equity rise reinforces liquidity to support start-up and working capital needs. Taken together, these factors lower execution risk, improve cash-flow visibility, and lift asset-level economics, supporting a higher NAV. Adjusting for the strengthened APT price environment and recent quarterly results, we arrive at an updated valuation of C$11.00 per share, contingent on successful execution by the company.
About Almonty Industries, Inc.
Almonty Industries Inc. is a global leader in tungsten mining, with strategically positioned assets in geopolitically stable regions including South Korea, Portugal, and Spain. The company is positioning to become the largest tungsten producer outside China upon the commissioning of its flagship Sangdong Mine.
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com .
Disclosures:
Diamond Equity Research LLC is being compensated by Almonty Industries, Inc. for producing research materials regarding Almonty Industries, Inc. and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for research engagement. As of 11/04/25 the issuer had paid us $50,000 for our company sponsored research services, which commenced 03/07/2025 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 11/04/2025. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for Almonty Industries, Inc. Please review the update report attached for full disclosure page.
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