AII Almonty Industries (delisted)

EDISON EQUITY RESEARCH: ALMONTY INDUSTRIES - ROBUST Q315 RESULTS DESPITE WEAKER APT

Almonty reported solid Q315 financial results, with an adjusted EBITDA loss narrowing to C$0.9m compared to C$1.0m in Q215 and C$1.5m in Q115, against the backdrop of a falling APT price. The results were supported by the continuing strong performance from Los Santos, which benefited from improved plant recovery and higher processed grade. Having incorporated Sangdong, the reported results and updated tungsten price assumptions into our model, we revise our valuation of Almonty from C$1.00/share to C$1.26/share. 

Almonty Industries is an independent tungsten producer, with two operating mines – Los Santos in Spain and Wolfram Camp in Australia – and the development-stage Valtreixal tungsten-tin project in Spain. The company produced 90kmtu of contained WO3 in FY14 and we expect it to deliver 136kmtu in FY15 as it fully consolidates Woulfe Mining.

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