Almonty Industries shares rally on tungsten production and buyback

Almonty Industries, a tungsten specialist, has experienced a significant stock rally on the NASDAQ, with shares rising approximately 8.8 percent in a single session. The company's stock has seen substantial growth, increasing over 117 percent since the beginning of the year.

Several factors are driving investor interest, including a share buyback program announced in mid-August. The program allows the company to repurchase up to 14.4 million common shares, valued at approximately $300 million, through August 2029. CEO Lewis Black stated the move is intended to reflect the company's true value, noting that Almonty controls one of the largest tungsten deposits outside of China.

Financial performance has also improved significantly. In the second quarter, revenue reportedly jumped 498 percent year-over-year to 43 million CA$, while the company moved from a net loss to a net profit of 181.8 million CA$. Additionally, the Sangdong Mine has transitioned from a development project to an operational focus, with ore processing into tungsten concentrate beginning in July. Analysts from Jefferies have issued a 'Buy' rating with a price target of $26.25, citing the importance of the commercial Phase-I production.