Almonty Industries authorizes US$300 million share buyback

Almonty Industries is transitioning from a mining developer to a large-scale tungsten producer following the commencement of commercial operations at its Sangdong mine in South Korea. The company reported a significant revenue surge in the second quarter, reaching 43 million CAD, a 498% increase compared to the same period last year. This growth is largely attributed to rising tungsten prices.

In a strategic move, Almonty's board has authorized a share buyback program of up to 14.4 million shares, valued at a maximum of US$300 million, over a 36-month period. This program is intended to provide financial flexibility to the company.

Despite strong operational growth, market analysts have expressed varying views on the company's valuation. While some firms like DA Davidson and Oppenheimer have raised price targets, Diamond Equity recently lowered its FY2026 earnings per share estimate to $0.39. Some analysts note that the company's current price-to-earnings ratio is high compared to the mining sector average, suggesting much of the recent growth may already be priced in.