Classification of GBC AG to Almonty Industries Inc

Anchoring the West’s Critical Mineral Supply Chain

Almonty Industries Inc. presents a compelling investment case as a vertically integrated supplier of tungsten and molybdenum, strategically positioned to become a dominant non-Chinese source of critical minerals. Anchored by its flagship Sangdong Mine in South Korea—poised to become one of the largest tungsten mines outside of China, Almonty is entering a transformational growth phase that aligns with global imperatives to secure resilient and geopolitically aligned supply chains.

Following years of disciplined capital deployment and strategic asset acquisition, the company is advancing into production with a clearly defined, multi-phase development roadmap. The Sangdong Mine alone is expected to underpin Almonty’s long-term cash flows, with over 90 years of mine life, superior ore grades, and projected operating costs in the lowest global quartile. The inclusion of downstream oxide processing and molybdenum extraction further enhances the project's value proposition, enabling Almonty to move up the value chain while capturing market premiums from technology and defense sectors.

Almonty also benefits from a diversified European base with its high-grade Panasqueira Mine in Portugal, an operation with over a century of production history and stable cash flow generation. The company’s Spanish assets, including the tailings-focused Los Santos Mine and the development-stage Valtreixal Project, offer low-capex growth and strategic optionality to expand European output.

Almonty is uniquely situated at the intersection of supply security and industrial demand growth, with tungsten’s role in semiconductors, aerospace, and EVs becoming increasingly critical. As Western economies implement policies to reduce reliance on Chinese materials, Almonty stands out as a scalable, conflict-free alternative with jurisdictional credibility, integrated operations, and multi-decade resource depth.

We initiate coverage with a Buy rating and set a target price of CAD 4.20, implying more than 100% upside from the current share price of CAD 2.06. Our valuation reflects the anticipated earnings inflection point as Sangdong transitions into production in late 2025, complemented by the high-margin contribution from the planned downstream oxide facility and steady cash flow from the Panasqueira Mine. Additional optionality comes from the reactivation of Los Santos and development of Valtreixal. We believe Almonty is attractively positioned on a risk-adjusted basis for investors seeking long-term exposure to the Western realignment of critical raw material supply chains.