Almonty Industries has transformed its balance sheet with approximately C$1.2 billion in cash, giving the tungsten producer enough capital to advance four major growth initiatives at the same time rather than developing them sequentially.
The company closed an oversubscribed US$800 million convertible senior notes offering during the quarter. Almonty ended the period with approximately C$1.2 billion of cash while also reporting quarterly revenue growth of 498% year-over-year to C$43 million.
Management intends to use the stronger capital position to simultaneously advance the Phase II expansion of the Sangdong tungsten mine in South Korea, a tungsten oxide facility in South Korea, the Gentung Tungsten Project in Montana and an extension of the Panasqueira mine in Portugal.
The Phase II expansion at Sangdong is designed to increase throughput to as much as 1.2 million tonnes annually. Almonty also amended the Gentung project’s offtake arrangement, adding six years to its duration, increasing contracted volumes by 40% and improving pricing by 6.3%.
KEY QUOTES:
“The US$800 million convertible senior notes offering we closed in June was substantially oversubscribed and leaves us with $1.2 billion in cash, providing capital that allows us to advance the Phase II expansion at Sangdong, the Tungsten Oxide Facility in South Korea, the Gentung Tungsten Project in Montana and the Panasqueira extension in parallel rather than sequentially.”
Lewis Black, President and CEO of Almonty Industries
