Almonty Industries Boosts Sangdong Tungsten Offtake Agreement with Global Tungsten & Powders to $490 Million Annual Revenue

Details of the Amended Offtake Agreement Between Almonty and GTP

The recent amendment to the offtake agreement between Almonty Industries and Global Tungsten & Powders LLC marks a substantial restructuring of a key commercial partnership for the Sangdong Mine. Originally, the contract spanned 15 years from first delivery, with a total volume of 3,150,000 MTU of tungsten concentrate. Announced on 15 July 2026, the amendment extends the term by six years to 21 years, pushing deliveries into the late 2040s. Contracted volumes have increased by 40% to 4,410,000 MTU, with a minimum annual delivery of 210,000 MTU after ramp-up.

Importantly, pricing for all contracted volumes has improved by approximately 6.3%. This uplift applies to the entire agreement, affecting all previously committed volumes, not just incremental amounts. Combined, the longer term, higher volumes, and better pricing raise expected annual revenue by at least US$30 million, bringing it to US$490 million at current APT prices. The amendment also strengthens the supply partnership between Almonty and the Plansee Group, GTP's Austrian parent company, reflecting a longstanding collaboration extended beyond its original scope.

Significance of Processing Plant Throughput Start at Sangdong Mine

The timing of the offtake amendment aligns with a key operational milestone at Sangdong. On 1 July 2026, Almonty announced the start of processing plant throughput operations, marking a shift from construction to active production. This milestone underpins the expanded delivery commitments in the amended agreement as the mine advances toward full Phase I capacity.

Located in South Korea, the Sangdong Mine is recognized by Almonty as one of the world’s largest and highest-grade tungsten deposits. The amended agreement covers roughly 90% of Phase I tungsten concentrate production. It excludes the planned Phase II expansion, which is expected to approximately double processing capacity, and does not include production from Almonty's other assets. This distinction is important for investors evaluating Almonty's total production and revenue potential, as the amended deal represents only part of the company’s long-term output.

GTP’s Role in U.S. Defense Supply Chains and the Importance of Conflict-Free Tungsten

Global Tungsten & Powders LLC, based in Towanda, Pennsylvania, is among the largest Western tungsten powder producers and a key supplier to U.S. defense and industrial sectors. As a member of Austria’s Plansee Group, GTP secures a long-term supply of conflict-free tungsten concentrate from Almonty’s Sangdong Mine, located in geopolitically stable South Korea, a close U.S. ally.

The strategic value of this supply arrangement has increased amid rising tungsten demand in Western defense applications such as armor, munitions, and electronics. The company notes that Chinese export restrictions have driven tungsten prices to historic highs. The amended agreement guarantees an expanded, U.S.-delivered supply of conflict-free tungsten concentrate for over two decades, granting GTP supply certainty and Almonty unmatched contracted revenue visibility. The geopolitical significance of establishing a non-Chinese tungsten supply chain is central to the expanded partnership.

Long-Term Revenue Visibility from the 21-Year Amended Agreement

A key investor takeaway is the extensive revenue visibility the amendment provides over 21 years. At current APT prices, annual contracted revenue is expected to reach US$490 million, with improved pricing generating at least US$30 million more per year than the previous contract, totaling approximately US$630 million additional revenue over the agreement’s duration.

These figures are based on current APT pricing and may fluctuate with market changes. The company cautions that actual results could vary materially due to price shifts. Nonetheless, the minimum annual delivery of 210,000 MTU after ramp-up establishes a revenue floor, distinguishing Almonty from producers lacking long-term contracts. Extending the agreement into the late 2040s offers rare long-term visibility across multiple commodity cycles.

CEO Lewis Black’s Insights on the Amendment and Market Position

Almonty’s Chairman, President, and CEO Lewis Black commented that the amendment reflects the strength of the partnership with GTP and Plansee Group, which has supported Sangdong since 2018. He highlighted that extending the contract to 21 years and increasing volumes by 40%, along with a 6.3% revenue uplift, provides unmatched contracted revenue visibility in the tungsten industry.

Black emphasized that the pricing improvement applies to all contracted volumes, coinciding with Sangdong’s ramp-up amid record-high tungsten prices. He noted the amendment’s dual value in expanding volume commitments and enhancing pricing to maximize revenue as production scales. Investors should consider these statements alongside the company’s regulatory risk disclosures.

Almonty’s Global Operations Beyond Sangdong

While Sangdong is Almonty’s flagship asset and the focus of the amended agreement, the company also operates in Portugal and has projects in Spain and the United States. Almonty positions itself as a leading global supplier of conflict-free tungsten, critical for defense and advanced technologies. Listed on NASDAQ, TSX, ASX, and Frankfurt exchanges, Almonty maintains a broad international investor base.

The GTP offtake agreement exclusively covers Phase I production at Sangdong and excludes operations in Portugal, Spain, and the U.S., representing additional revenue potential beyond the current contract. Investors should evaluate all assets and the planned Sangdong Phase II expansion to fully assess Almonty’s production and revenue outlook.

Potential Impact of Sangdong Phase II Expansion on Future Production

The amended agreement does not include the planned Phase II expansion at Sangdong, which is expected to roughly double annual processing capacity. This expansion could significantly increase Almonty’s production beyond the current contracted volumes. However, Phase II remains a future growth initiative without confirmed operational status or full funding as of this update.

If Phase II proceeds, Almonty will need to secure new offtake agreements or sell additional production on spot markets. The current GTP contract will cover a smaller portion of total output once Phase II is operational. Investors should monitor updates on Sangdong’s Phase I ramp-up and any developments related to Phase II financing, permitting, or commercial arrangements.

Chinese Export Restrictions Shaping Tungsten’s Strategic and Pricing Landscape

The company highlights Chinese export restrictions as a major factor driving tungsten’s current market dynamics. China’s historical dominance in tungsten production and recent export limits have tightened global supply, boosting the strategic importance of alternative sources like Sangdong. Western governments and industrial buyers increasingly seek conflict-free tungsten supply chains.

U.S. defense procurement bans on Chinese-sourced critical minerals reinforce Almonty’s market position. Sangdong’s South Korean location, GTP’s role in U.S. defense supply chains, and the long-term offtake agreement align with Western critical mineral security priorities. Tungsten’s defense applications and the pricing environment shaped by Chinese restrictions underpin the improved pricing and extended term of the amended agreement. Investors should note that changes in Chinese export policies or significant APT price declines could impact the agreement’s commercial assumptions.

Investor Risks to Consider with the Offtake Agreement Amendment

Despite the expanded contracted revenue base, Almonty’s disclosures identify several risks. Revenue projections are forward-looking and based on current APT prices, which may fluctuate materially over the 21-year contract. Sustained tungsten price declines would reduce realized revenue per MTU.

Other risks include uncertainties in Sangdong’s production ramp-up timing and volume delivery, as well as execution risks for the Phase II expansion. Operational challenges such as equipment performance, geological conditions, permitting, and geopolitical factors in South Korea also pose risks. Investors should review Almonty’s annual information form for 2025 and Management’s Discussion and Analysis dated 11 May 2026 for comprehensive risk details before evaluating the financial outlook presented in this update.