Q: Almonty seems to be gaining traction with the imminent mine opening in S Korea. It has purchased another mine in the US and is moving its head office to the states. With the price for tungsten doubling in the last year and the demand growing, this appears to be a small cap with lots of upside. Thoughts?
5i Research Answer:
We would agree it looks good, even after its huge gains, though 'lots of upside' is uncertain and much will depend on the market and commodity prices, still. But as revenue ramps up, it will shift to profitability next year, and this, plus its (now) market cap of $2.7B could re-rate it and make it much more investable for large funds. Insiders have been buyers and own 8% right now. Sometimes it takes a while for investors to revalue a new mine, as they can hold back until everything looks fine. But AII is hitting commercial production and we like the recent diversification moves as well.