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Original-Research: Almonty Industries Inc. - from Sphene Capital GmbH

19.08.2024 / 05:21 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

Group AG.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of Sphene Capital GmbH to Almonty Industries Inc.

Company Name: Almonty Industries Inc.

ISIN: CA0203981034

Reason for the research: Update Report

Recommendation: Buy

from: 19.08.2024

Target price: CAD 2.31 (previously CAD 2.13)

Target price on sight of: 36 months

Last rating change: -

Analyst: Peter Thilo Hasler, CEFA

H1/2024 above estimates - increasing price target to CAD 2.31

On the backdrop of higher production and increased tungsten recovery rates

at the Panasqueira Mine, H1/2024 profits from mining operations were

significantly above our estimates and last year's level. With the world's

longest producing mine (Panasqueira) and the world's largest tungsten

deposit (Sangdong) under construction, Almonty is - in our view - very close

to becoming one the most important global suppliers of conflict-free

tungsten material. We continue to value the shares of Almonty Industries

using a two-stage Discounted Cashflow entity model of Almonty's current and

future producing assets (Sangdong, Panasqueira, and Los Santos,) to which we

have added the discounted value of the development project (Valtreixal). We

calculate a target price of CAD 2.31 per share. With an expected share price

performance of 203.4%, we confirm our Buy rating for the shares of Almonty

Industries.

Tungsten is classified as a critical raw material by the European Union, the

United States, Canada, Japan, South Korea, Australia and other countries -

and additionally as a strategic raw material by the EU - due to its high

technological importance and unstable supply. Decarbonization and

digitalization are causing a change in demand for raw materials, moving away

from fossil and towards mineral raw materials, some of which are expected to

see significant demand increases. In addition, as geopolitical tensions

continue to rise, demand for advanced defense technologies is likely to

increase, driving demand for tungsten armour, which is less regulated than

depleted uranium and considered "exportable" by the US government.

You can download the research here: http://www.more-ir.de/d/30533.pdf

Contact for questions:

Peter Thilo Hasler, CEFA

+49 (152) 31764553

peter-thilo.hasler@sphene-capital.de

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1969999 19.08.2024 CET/CEST

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