Almonty Industries (AII) AI Stock Analysis

• Market Cap: C$2.36B
• Dividend Yield: N/A
• Average Volume (3M): 597.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: 7.50%
• EPS Growth: -508.68%
• Country: CA
• Employees: 403
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.13
• Shares Outstanding: 253,549,880
• 10 Day Avg. Volume: 1,019,496
• 30 Day Avg. Volume: 597,429
• PEG Ratio: -0.22
• Price to Book (P/B): 5.92
• Price to Sales (P/S): 8.02
• P/FCF Ratio: -5.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$16.53
• Price Target Upside: 64.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: C$10.00 ▼(-0.70% Downside)

Almonty Industries' overall stock score is primarily impacted by its weak financial performance, characterized by significant losses and high leverage. While technical indicators show some strength, valuation concerns persist due to ongoing losses. Positive corporate events, such as strategic acquisitions, provide some upside potential, but legal challenges add risk.

Positive Factors

Strategic Expansion

The acquisition of a key tungsten asset in the U.S. strengthens Almonty's global portfolio, enhancing its market position and long-term growth potential.

Leadership Change

The appointment of a new COO aims to enhance operational efficiency and project development, potentially improving long-term operational performance.

Revenue Growth

Despite challenges, consistent revenue growth indicates demand for tungsten and supports the company's strategic expansion efforts.

Negative Factors

High Leverage

High leverage limits financial flexibility and increases risk, potentially impacting the company's ability to invest in growth opportunities.

Negative Profit Margins

Sustained negative profit margins highlight operational inefficiencies and threaten long-term profitability, requiring strategic cost management.

Weak Cash Flow

Weak cash flow generation indicates difficulty in sustaining operations and funding growth without external financing, impacting financial health.

Almonty Industries Business Overview & Revenue Model

Company Description

Almonty Industries Inc. (AII) is a Canadian-based mining company focused on the production and supply of tungsten, a critical mineral used in various industrial applications. The company operates several mining projects, including the Los Santos Tungsten Mine in Spain and the Sangdong Tungsten Mine in South Korea. AII is committed to sustainable mining practices and aims to become a leading supplier of tungsten on a global scale, serving industries such as electronics, aerospace, and automotive.

How the Company Makes Money

Almonty Industries generates revenue primarily through the extraction and sale of tungsten concentrate from its mining operations. The company earns money by selling tungsten to various industrial customers who require the mineral for manufacturing processes. Key revenue streams include direct sales to end-users, long-term supply agreements, and potentially royalties from joint ventures or partnerships with other mining entities. Additionally, Almonty benefits from fluctuations in tungsten prices, which can significantly impact profit margins. Strategic partnerships with industrial clients and suppliers also enhance AII's market position and contribute to consistent revenue growth.

Almonty Industries Financial Statement Overview

Summary

Almonty Industries faces significant financial challenges, with persistent losses and high leverage. Despite slight revenue growth, profitability and cash flow remain weak, posing risks to financial health. The company needs to address its operational inefficiencies and manage its debt levels to improve its financial standing.

Income Statement

Almonty Industries has shown a slight revenue growth of 3.07% in the latest year, but profitability remains a significant concern. The company has a low gross profit margin of 6.83% and a negative net profit margin of -56.52%, indicating substantial losses. EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 4.04, which poses a risk in terms of financial stability. The return on equity is negative at -41.71%, indicating that the company is not generating returns for shareholders. The equity ratio is not provided, but the high debt levels suggest limited equity cushion.

Cash Flow

Cash flow analysis shows a concerning trend with negative operating cash flow and free cash flow. Although free cash flow has grown by 139.1%, it remains negative, and the operating cash flow to net income ratio is -0.15, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is high at 5.83, suggesting reliance on non-operational cash sources.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.92M	28.84M	22.51M	24.80M	20.85M	25.09M
Gross Profit	2.12M	1.97M	1.08M	2.55M	2.79M	-1.37M
EBITDA	-41.21M	-10.24M	-3.39M	-6.85M	-3.32M	-7.57M
Net Income	-47.14M	-16.30M	-8.84M	-14.49M	-7.75M	-9.06M
Balance Sheet
Total Assets	279.04M	256.35M	235.33M	192.84M	165.85M	151.06M
Cash, Cash Equivalents and Short-Term Investments	16.98M	7.83M	22.02M	8.44M	1.05M	2.37M
Total Debt	171.61M	158.02M	130.07M	89.48M	67.71M	61.52M
Total Liabilities	260.94M	217.28M	186.83M	153.09M	128.36M	121.89M
Stockholders Equity	18.10M	39.07M	48.51M	39.75M	37.49M	29.17M
Cash Flow
Free Cash Flow	-47.44M	-43.73M	-29.19M	-28.33M	-18.44M	-11.13M
Operating Cash Flow	-10.78M	-7.50M	-11.70M	-5.57M	-8.44M	-4.83M
Investing Cash Flow	-36.66M	-36.23M	-17.49M	-22.75M	-10.00M	-6.29M
Financing Cash Flow	47.65M	29.37M	43.37M	35.22M	17.19M	11.91M

Almonty Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AII, the sentiment is Positive. The current price of 10.07 is above the 20-day moving average (MA) of 9.21, above the 50-day MA of 9.90, and above the 200-day MA of 6.20, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 55.18 is Neutral, neither overbought nor oversold. The STOCH value of 31.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AII.

Almonty Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFM	82 Outperform	C$1.46B	8.74	33.87%	10.48%	34.89%	67.31%
ALS	81 Outperform	C$1.84B	5.09	53.36%	0.96%	-0.76%	2549.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
USA	58 Neutral	C$2.18B	-20.70	-144.69%	―	14.32%	37.85%
AII	52 Neutral	C$2.36B	-19.40	-57.75%	―	7.50%	-508.68%
LAC	49 Neutral	C$1.98B	-4.67	-42.69%	―	―	-465.27%

Almonty Industries Corporate Events

Almonty Industries Expands into U.S. Tungsten Market with Strategic Acquisition

Almonty Industries has acquired the Gentung Browns Lake Tungsten Project in Montana, marking its entry into the U.S. market. This acquisition enhances the U.S. domestic tungsten supply, aligning with government initiatives to reduce reliance on Chinese sources. The project positions Almonty as a key supplier for critical industries, including defense and aerospace, and supports its strategy to establish a Western-based tungsten platform. The move is expected to create new industrial partnerships and technological collaborations, reinforcing Almonty’s role in securing resilient supply chains for critical minerals.

Almonty Industries Acquires Strategic U.S. Tungsten Project

Almonty Industries has announced the acquisition of the Gentung Browns Lake Tungsten Project in Montana, a strategic move that positions the company for near-term production in the U.S. tungsten market. This acquisition, valued at $9.75 million, allows Almonty to expand its global footprint and strengthen its position as a leading non-Chinese supplier of tungsten concentrate. The project is located in a historic tungsten district with existing infrastructure, enabling a swift transition to production. The move is expected to enhance Almonty’s ability to meet growing defense and manufacturing demands for tungsten, particularly in the U.S. and allied markets.

Almonty Industries Files Preliminary Base Shelf Prospectus for Capital Flexibility

Almonty Industries Inc. has filed a preliminary base shelf prospectus with Canadian regulatory authorities and a registration statement with the U.S. SEC, allowing it to offer various securities over a 25-month period once finalized. This move aims to provide Almonty with greater flexibility to access new capital, although no specific securities offerings are planned at this time. The prospectus will enable the company to respond to market opportunities and support its strategic initiatives in the tungsten industry.

Almonty Industries Takes Legal Action Against Pure Tungsten for Misinformation

Almonty Industries Inc. has initiated legal proceedings against Pure Tungsten Inc. for disseminating false and misleading statements about Almonty, its Sangdong Mine, and the involvement of Mr. Tiger Kim. The company seeks court intervention to stop the spread of misinformation, correct false claims, and protect its market integrity and shareholder interests. Almonty emphasizes its commitment to transparent business practices and accurate market communication to uphold investor confidence and regulatory compliance in the tungsten sector.

Almonty Industries Secures Shareholder Approval for Currency Amendments

Almonty Industries Inc. announced the results of a special meeting of shareholders, where amendments to the currency of outstanding options and warrants were approved. These changes, shifting the exercise currency to Canadian dollars, aim to eliminate accounting distortions and align with the company’s functional currency. The amendments received overwhelming support, with over 99% of votes in favor, indicating strong shareholder backing for the company’s financial strategy.

Almonty Proposes Currency Amendment to Clarify Financial Reporting

Almonty Industries has announced the distribution of materials for a special shareholder meeting to vote on a proposed amendment to change the currency of exercise prices for certain warrants and options to Canadian dollars. This amendment aims to eliminate accounting distortions caused by the current currency setup, which results in non-cash losses being reported due to fluctuations in the trading price of common shares. By aligning the currency with the company’s functional currency, the amendment will allow these financial instruments to be recognized as equity, thereby providing a clearer reflection of the company’s financial health and operations.