Almonty Shares Present 71% Upside Opportunity

DA Davidson has reinforced its buy rating for Almonty while increasing its price target from $11.00 to $12.00. This revised projection indicates a substantial 71% potential gain from the current trading level around $7.00. According to analyst Matt Summerville, the adjustment follows a more comprehensive evaluation of the company’s Montana initiative.

Strengthening US Tungsten Supply Chains

The optimistic assessment stems from Almonty’s recent strategic acquisition of the Gentung-Browns Lake tungsten project in Montana for $9.75 million. This transaction positions the company to potentially establish the first operational tungsten mine in the United States in over ten years.

Key advantages of the Montana project include:
– Potential production commencement as early as the second half of 2026
– Existing infrastructure encompassing water rights and processing facilities
– Historical tungsten district with established transportation access
– Strategic positioning within defense and manufacturing supply networks

Market Dynamics Support Bullish Outlook

Global tungsten markets continue to demonstrate strength, with prices outside China remaining firm. Notably, China has become a net importer of the metal, highlighting tightening worldwide supply conditions. These market fundamentals support DA Davidson’s decision to raise its price assumptions through the remainder of 2025.

Should investors sell immediately? Or is it worth buying Almonty?

The Montana development complements Almonty’s existing portfolio, which includes the Sangdong mine in South Korea. This asset is expected to help establish Almonty as the largest non-Chinese tungsten producer globally.

Financial Performance and Market Sentiment

Despite reporting negative EBITDA of $14.76 million and a gross margin of just 5.39%, Almonty’s stock delivered an extraordinary 710% gain over the past year. Second-quarter 2025 results showed revenue of $5.2 million, representing a year-over-year decline that management attributes to personnel realignments in preparation for L4 operations.

Oppenheimer & Co. has similarly maintained its buy recommendation with a $12.00 price objective. Both financial firms emphasize Almonty’s strategic positioning as a future leading global supplier of tungsten concentrate outside China.

Recent corporate developments include the company’s July listing on the Nasdaq exchange and planned reincorporation to Delaware, both strengthening its US presence. Management confirms ongoing supply discussions with the US Department of Defense, though these negotiations are based on market pricing without government financing or equity participation.