TORONTO--(BUSINESS WIRE)--August 14, 2025-- 

Almonty Industries Inc. ("Almonty" or the "Company") $(ALM)$ (TSX: AII) (ASX: AII) (Frankfurt: ALI1), a leading global producer of tungsten concentrate, today announced its second quarter 2025 financial results.

Financial Summary:

Unless otherwise indicated, all figures are expressed in millions of Canadian dollars.

 
                                                 Three Months Ended June 30, 
                                               ----------------------------- 
                                                         2025           2024 
Revenue                                                  $7.2           $7.9 
Income (loss) from Mining Operations                   ($0.9)           $1.2 
Operating Expenses                                      $11.2           $2.5 
Loss before valuation of warrant liabilities          ($17.4)        ($11.6) 
Non-Cash Loss on Valuation of Warrant 
 Liabilities                                            $38.1         ($0.5) 
Non-Cash Loss on Valuation of Derivatives 
 Liabilities                                             $6.9         ($0.8) 
Net loss for the period                               ($58.2)         ($1.8) 
Adjusted EBITDA (non-IFRS) (1)                         ($4.8)           $0.0 
 

Key Second Quarter 2025 & Subsequent Operational Highlights:

   --  Secured hard floor offtake agreement with Tungsten Parts Wyoming, Inc. 
      and Metal-Tech Ltd. to supply a minimum of 40 metric tonnes of tungsten 
      oxide per month exclusively for U.S. defense applications. 
 
   --  Invited to participate in the U.S. Critical Minerals Forum, a trade 
      association funded by the Defense Advanced Research Projects Agency 
      (DARPA) dedicated to building resilient and diversified critical minerals 
      supply chains. 
 
   --  In July 2025, concurrently with the closing of an upsized public 
      offering of common shares in the United States for gross proceeds of 
      US$90 million, Almonty successfully listed on the Nasdaq Capital Market 
      under the symbol "ALM". 
 
   --  Appointed respected national security thought leader Alan Estevez to 
      the Company's Board of Directors, who most recently served as the U.S. 
      Under Secretary of Commerce for Industry and Security, with prior roles 
      in the U.S. Department of Defense. 
 
   --  Received bipartisan recognition from the U.S. House Select Committee on 
      the Strategic Competition Between the United States and the Chinese 
      Communist Party, which acknowledged Almonty's role in supporting U.S. 
      efforts to strengthen domestic supply chains for critical minerals, 
      highlighting the strategic relevance of its Sangdong mine and the 
      Company's planned U.S. redomiciliation. 

Second Quarter 2025 Financial Results Highlights:

Revenue recorded in the second quarter of 2025 decreased by 9.4% to $7.2 million, as compared to $8.0 million in the same year-ago quarter. The slight decrease was largely attributable to slightly lower tungsten concentrate sales and a diversion of personnel to start Level 4 preparation. These personnel have resumed normal activities in the third quarter, hence normalizing production.

Operating expenses in the second quarter of 2025 totaled $11.2 million, as compared to $2.5 million in the same year-ago quarter. The change in operating expenses was chiefly due to an increase in non-cash share-based compensation expense and an increase in costs associated with the Company's proposed redomiciling.

Net loss in the second quarter of 2025 totaled $58.2 million, as compared to $1.8 million in the prior year. The change was primarily attributable to a non-cash loss of $38.1 million from the revaluation of warrant liabilities and a non-cash expense of $6.9 million from the revaluation of embedded derivative liabilities, based on a Black-Scholes valuation method reflecting the increase in the Company's stock price from $3.375 per common share at March 31, 2024 to $6.72 at June 30, 2025 (both on a post-consolidation basis). The Company expects to rectify this with a reversal once a shareholder meeting is held to amend Australian warrants to be priced from AUD to CAD.

Adjusted EBITDA, a non-IFRS measure, was ($4.8) million in the second quarter of 2025, as compared to $0.0 million in the same year-ago quarter.(1)

Cash and cash equivalents as of June 30, 2025 totaled $24.7 million, as compared to $16.9 million as of March 31, 2025. The change in cash was primarily a result of the receipt of proceeds of $8.4 million in conjunction with the exercise of warrants, partially offset by strategic investments in mining assets at the Company's Sangdong Project in South Korea. Subsequent to the close of the second quarter, the Company raised gross proceeds of US$90 million from the completion of a public offering in the United States.

Management Commentary

Almonty President & CEO Lewis Black commented: "During the second quarter, we achieved solid momentum spanning several strategic initiatives, laying the groundwork for Almonty's next phase of growth. Our Panasqueira mine remained a reliable cornerstone, delivering steady tungsten output and valuable operational insights as we prepare for first production at our flagship Sangdong project in South Korea.

"Sangdong's development reached a major milestone during the second quarter. With all processing equipment now installed and the final drawdown of the KfW IPEX-Bank loan facility completed, the mine's construction is effectively complete. We have transitioned into the final pre-production phase at one of the world's largest and highest-grade tungsten projects outside of China, and we remain on track to commence initial production in the second half of 2025. Importantly, Sangdong's significantly higher ore grades relative to Panasqueira should translate into robust production economics once operations begin.

"We also fortified our financial position, ending the second quarter with approximately $25 million in cash thanks to warrant exercises and other equity inflows. Subsequent to quarter end, we listed on the Nasdaq Capital Market and raised US$90 million in a public offering, significantly bolstering our balance sheet to fuel Sangdong's ramp-up and future growth initiatives.

"It's worth noting that our net loss for the quarter was largely driven by a non-cash revaluation of warrant and derivative liabilities, reflecting our share price increasing notably during the period. This IFRS-required accounting adjustment does not impact our cash flow and we do not believe is reflective of underlying operational performance. Excluding this one-time accounting effect, our operating results were in line with expectations. We expect to reverse this accumulated non-cash loss once the remaining Australian warrants are priced into CAD.

"On the strategic front, we were invited to join a U.S. Defense Department-backed critical minerals forum and signed an offtake agreement to supply tungsten oxide for U.S. defense applications -- underscoring our key role in building a secure, diversified tungsten supply outside of China. We also welcomed Alan Estevez, a former U.S. Under Secretary of Commerce for Industry and Security, to our Board of Directors, adding deep national security and industry expertise to our leadership team. With Sangdong on the cusp of production and global demand for tungsten rising, we believe Almonty is entering a transformative new chapter, poised to deliver long-term value to my fellow shareholders," concluded Black.

About Almonty

Almonty (NASDAQ: ALM) (TSX: AII) (ASX: AII) (Frankfurt: ALI1) is a leading supplier of conflict-free tungsten -- a strategic metal critical to the defense and advanced technology sectors. As geopolitical tensions heighten, tungsten has become essential for armor, munitions, and electronics manufacturing. Almonty's flagship Sangdong mine in South Korea, historically one of the world's largest and highest-grade tungsten deposits, is expected to supply over 80% of global non-China tungsten production upon reaching full capacity, directly addressing critical supply vulnerabilities highlighted by recent U.S. defense procurement bans and export restrictions by China. With established operations in Portugal and additional projects in Spain, Almonty is strategically aligned to meet rapidly rising demand from Western allies committed to supply-chain security and defense readiness. To learn more, please visit https://almonty.com.

Legal Notice

The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions.

(1) Use of Non-IFRS Financial Measures

Non-IFRS financial measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS financial measures by providing further understanding of Almonty's results of operations from management's perspective and additional insight into Almonty's operating performance and trends. Almonty's definitions of non-IFRS measures used in this news release may not be the same as the definitions for such measures used by other companies in their reporting. Non-IFRS measures have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of Almonty's financial information reported under IFRS. In this news release, Almonty uses the non-IFRS financial measure "Adjusted EBITDA". Almonty's management uses Adjusted EBITDA in order to evaluate its operating performance, by eliminating the impact of non-operational or non-cash items.

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