Original-Research: Almonty Industries Inc. (von Sphene Capital GmbH): Buy

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Original-Research: Almonty Industries Inc. - from Sphene Capital GmbH

03.02.2025 / 15:15 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of Sphene Capital GmbH to Almonty Industries Inc.

Company Name: Almonty Industries Inc.

ISIN: CA0203981034

Reason for the research: Update Report

Recommendation: Buy

from: 03.02.2025

Target price: CAD 5.20 (previously CAD 3.21)

Target price on sight of: 36 months

Last rating change: -

Analyst: Peter Thilo Hasler, CEFA

Molybdenum gains strategic importance for Almonty

As outlined in our previous updates, the underlying molybdenum deposit at

Sangdong was not factored into our valuation and was considered a potential

upside. This upside has now materialized through an exclusive offtake

agreement with SeAH Group for the full molybdenum production from Almonty's

Sangdong Molybdenum Project, developed by Almonty's Korea Moly (AKMC)

subsidiary. With this agreement, Almonty becomes a leading supplier of two

valuable minerals-tungsten and molybdenum-warranting a revaluation of the

stock. The secured offtake agreement ensures a stable revenue stream, that

is now included into our two-stage Discounted Cash Flow (DCF) model. Our

model incorporates both current and future producing assets-Sangdong

(tungsten and molybdenum), Panasqueira, and Los Santos-along with the

discounted value of the Valtreixal development project. As a result, we

significantly raise our target price from CAD 3.21 per share to CAD 5.20.

Given an expected share price performance of 344.5%, we reaffirm our Buy

rating for Almonty shares.

With a production volume of 2.2 mn tons in 2023, SeAH Holdings is one of

South Korea's leading steel producers. As a holding company, it oversees

SeAH's subsidiaries and manages its investment asset portfolios. One of

these subsidiaries, SeAH M&S, operates the only molybdenum roasting facility

in Asia outside China and owns the world's second-largest molybdenum oxide

smelter. SeAH M&S's primary product is ferro-molybdenum alloy, a rare metal

essential for various applications (for example specialty steels and

semiconductors).

The Sangdong Molybdenum Project has secured all necessary permits for mining

and environmental operations. Production is set to begin by the end of

2026e, with the mine expected to remain operational for up to 60 years. At

full capacity, it is projected to produce 5,600 tonnes of molybdenum

annually, according to the company.

The offtake agreement includes a hard floor price of USD 19 per pound of

molybdenum, which is below current market price of USD 29.40 per pound.

According to the company, the floor price provides a stable basis for

financial planning, while the offtake agreement in our view enables Almonty

to access low-interest domestic bank debt.

You can download the research here: http://www.more-ir.de/d/31707.pdf

Contact for questions:

Peter Thilo Hasler, CEFA

(152) 31764553

peter-thilo.hasler@sphene-capital.de

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2080107 03.02.2025 CET/CEST

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