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

27.11.2024 / 14:20 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: 27.11.2024

Target price: CAD 3.21 (previously CAD 2.31)

Target price on sight of: 36 months

Last rating change: -

Analyst: Peter Thilo Hasler, CEFA

Installation of grinding equipment at Sangdong mine

After the publication of the unaudited interim nine months 2024 report, 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 now include the

Sangdong downstream extension chain and also the L4 extension at

Panasqueira, each effective in 2027e, and significantly increase our target

price to CAD 3.21 from CAD 2.31 per share. With an expected share price

increase of 260.7%, we confirm our Buy rating for the Almonty shares.

With revenues of CAD 22.6 mn in the first nine months 2024 (9M/2023: CAD

21.2 mn, +6.5% YoY) and an EBITDA of CAD -3.4 mn (9M/2023: CAD -1.0 mn),

Almonty is, in our view, well on track to reach our full year forecasts of

CAD 29.6 mn and CAD -5.0 mn, respectively. Almonty's only producing mine is

still the Panasqueira (Portugal) polymetallic wolframite deposit, where mine

grades and recovery rates (with more than 80% one of the highest in the

industry) continued to improve in Q4/2024, according to the company.

Mine production costs (including direct mining costs, milling costs,

tailings costs, and waste rock stripping costs associated with current

production) were CAD 18.4 mn (9M/2023: CAD 14.6 mn), after and care and

maintenance costs of CAD 0.8 mn (9M/2023: CAD 0.8 mn) and depreciation and

amortization of CAD 0.9 mn (9M/2023: CAD 0.8 mn, profit from mining

operations was CAD 2.5 mn, significantly above last year's CAD 0.9 mn.

The development of Panasqueira's operating performance in Q3/2024 was

significantly more pronounced than in the two previous quarters: While

shipment volumes increased by 21.6% in Q3/2024, revenues increased by 52.0%

to CAD 6.8 mn. As a result, Panasqueira's profit from mining operations

increased by 57.0% to CAD 0.909 mn in Q3/2024 compared to CAD 0.579 mn in

Q3/2023. This corresponds to a mining margin of 13.4% (Q3/2023: 13.0%).

You can download the research here: http://www.more-ir.de/d/31435.pdf

Contact for questions:

Peter Thilo Hasler, CEFA

+49 (152) 31764553

peter-thilo.hasler@sphene-capital.de

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2039649 27.11.2024 CET/CEST

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