Almonty Announces the Filing of Its Audited Consolidated Financial Statements, MD&A and AIF for the Year Ended December 31, 2021

Rhea-AI Summary

Almonty Industries (OTCQX: ALMTF) has filed its audited financial statements for the year ended December 31, 2021. Gross revenue decreased to $20,847,000 from $25,095,000 in 2020. The net loss improved to $7,753,000 compared to a loss of $9,057,000 the previous year. The company has made significant progress at its Sangdong project, completing over 25% of construction with investments exceeding US$23.2 million. A new tailings dam was completed in Portugal, ensuring continued operations at Panasqueira for 20 more years.

Positive

• Improved net loss to $7,753,000 from $9,057,000 in 2020.
• Construction at Sangdong over 25% complete with $23.2 million spent.
• Completion of new tailings dam in Portugal secures 20 years of operations.

Negative

• Gross revenue declined to $20,847,000 from $25,095,000 in 2020.
• Cash decreased to $1,048,000 from $2,372,000 in 2020.
• Operating activities used $8,440,000 in cash, up from $4,831,000 in 2020.

TORONTO--(BUSINESS WIRE)-- Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) today announced the filing of its audited annual consolidated financial statements, management’s discussion & analysis (“MD&A”) and Annual Information Form (“AIF”) for the year ended December 31, 2021. Unless otherwise indicated, all currency amounts contained in this news release are expressed in Canadian dollars.

The following financial information is for the years ended December 31, 2021 and 2020:

		Year ended				Year ended
		31-Dec-21				31-Dec-20
		$'000				$'000
Gross Revenue			20,847				25,095
Mine production costs			19,565				23,394
Care and maintenance			848				997
Depreciation and amortization			1,783				2,075
Impairment reversal			(4,136	)			-
Income (loss) from mining operations			2,787				(1,371	)
General and administrative costs			6,380				6,964
Non-cash compensation costs			1,513				612
Loss before the under noted items			(5,106	)			(8,947	)
Interest expense			3,487				3,139
Financing fees			-				697
(Gain) Loss on debt settlement			-				(1,777	)
Gain on valuation of embedded derivative liabilities			(133	)			-
Foreign exchange (gain) loss			(215	)			(863	)
Tax provision			(492	)			(1,086	)
Net loss for the period			(7,753	)			(9,057	)
Income (loss) per share - basic		$	(0.04	)		$	(0.05	)
Income (loss) per share - diluted		$	(0.04	)		$	(0.05	)
Dividends			-				-
Cash flows provided by (used in) operating activities			(8,440	)			(4,831	)
Cash flows provided by (used in) investing activities			(10,001	)			(6,294	)
Cash flows provided by (used in) financing activities			17,187				11,906

The following financial information is as at December 31, 2021 and 2020:

		31-Dec-21				31-Dec-20
		$'000				$'000
Cash			1,048				2,372
Total assets			165,855				151,063
Long-term debt			67,706				61,524
Shareholders’ equity			37,492				29,169
Other
Outstanding shares (‘000)			207,705				183,464
Weighted average outstanding shares (‘000)
Basic			198,186				183,364
Fully diluted			198,186				183,364
Closing share price		$	0.90			$	0.65

Lewis Black, Chief Executive Officer of Almonty commented: “2021 saw significant development within the Company, in particular at the project build at Sangdong. We have now completed over 25% of works and have expended over US$23.2 million at the site. Our long lead time mills are now ready in the EU and will be shipped in April to South Korea with a scheduled arrival time in May 2022. I believe the decision to order these long lead time items in advance of drawdown was prudent given that, in the current climate, these same items would be 40% more expensive and delivery time would now be over 2 years. Detailed engineering planning continues to be underway and only this week we have paid the 30% deposit to Metso Outotec for the flotation plant equipment ensuring our price lock and delivery schedule. Our team in Korea has been expanded to cater to the significantly increasing workload as construction accelerates. Drawdown of the KfW-Ipex Bank loan has been unnecessary to date as our equity contribution has covered our build commitments. Shortly, as construction accelerates, drawdown will be made. Given this on-site progress and that our project team is now in place at site, the Company is now looking at how to best maximize our Sangdong asset and drive our growth. Our recent announcements regarding the downstream of our Tungsten concentrate for the South Korean domestic market is part of our strategy. It is also worth noting that Korea is the 4^th largest importer of Molybdenum in the world which also aligns with our ongoing assessment of our Korea Moly deposit located 150m under our Korea Tungsten deposit. On a final note, the completion of the new tailings dam in Portugal in 2021 marked a historic moment in the history of Panasqueira. A totally in-house designed and constructed dam allowing a further 20 years of activity ensures the ongoing viability of the project and is testament to the depth of engineering and construction skills found in our team after mining Tungsten for the last 126 years.”

About Almonty

The principal business of Toronto, Canada-based Almonty Industries Inc. is the mining, processing and shipping of tungsten concentrate from its Los Santos Mine in western Spain and its Panasqueira mine in Portugal as well as the development of its Sangdong tungsten mine in Gangwon Province, South Korea and the development of the Valtreixal tin/tungsten project in north western Spain. The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira mine, which has been in production since 1896, is located approximately 260 kilometres northeast of Lisbon, Portugal, was acquired in January 2016 and produces tungsten concentrate. The Sangdong mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired in September 2015 through the acquisition of a 100% interest in Woulfe Mining Corp. Almonty owns 100% of the Valtreixal tin-tungsten project in north-western Spain. Further information about Almonty’s activities may be found at www.almonty.com and under Almonty’s profile at www.sedar.com.

Legal Notice

The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer for Forward-Looking Information

When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. These statements and information are based on management’s beliefs, estimates and opinions on the date that statements are made and reflect Almonty’s current expectations.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Almonty to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: any specific risks relating to fluctuations in the price of ammonium para tungstate (“APT”) from which the sale price of Almonty’s tungsten concentrate is derived, actual results of mining and exploration activities, environmental, economic and political risks of the jurisdictions in which Almonty’s operations are located and changes in project parameters as plans continue to be refined, forecasts and assessments relating to Almonty’s business, credit and liquidity risks, hedging risk, competition in the mining industry, risks related to the market price of Almonty’s shares, the ability of Almonty to retain key management employees or procure the services of skilled and experienced personnel, risks related to claims and legal proceedings against Almonty and any of its operating mines, risks relating to unknown defects and impairments, risks related to the adequacy of internal control over financial reporting, risks related to governmental regulations, including environmental regulations, risks related to international operations of Almonty, risks relating to exploration, development and operations at Almonty’s tungsten mines, the ability of Almonty to obtain and maintain necessary permits, the ability of Almonty to comply with applicable laws, regulations and permitting requirements, lack of suitable infrastructure and employees to support Almonty’s mining operations, uncertainty in the accuracy of mineral reserves and mineral resources estimates, production estimates from Almonty’s mining operations, inability to replace and expand mineral reserves, uncertainties related to title and indigenous rights with respect to mineral properties owned directly or indirectly by Almonty, the ability of Almonty to obtain adequate financing, the ability of Almonty to complete permitting, construction, development and expansion, challenges related to global financial conditions, risks related to future sales or issuance of equity securities, differences in the interpretation or application of tax laws and regulations or accounting policies and rules and acceptance of the TSX of the listing of Almonty shares on the TSX.

Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to, no material adverse change in the market price of ammonium para tungstate (APT), the continuing ability to fund or obtain funding for outstanding commitments, expectations regarding the resolution of legal and tax matters, no negative change to applicable laws, the ability to secure local contractors, employees and assistance as and when required and on reasonable terms, and such other assumptions and factors as are set out herein. Although Almonty has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Almonty. Accordingly, readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary.

Investors are cautioned against attributing undue certainty to forward-looking statements. Almonty cautions that the foregoing list of material factors is not exhaustive. When relying on Almonty’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.

Almonty has also assumed that material factors will not cause any forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF ALMONTY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE ALMONTY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220330005888/en/

Lewis Black

Chairman, President and CEO

Telephone: +1 647 438-9766

Email: info@almonty.com

Source: Almonty Industries Inc.

FAQ

What were Almonty Industries' revenues for 2021?

Almonty Industries reported gross revenue of $20,847,000 for the year ended December 31, 2021.

How much did Almonty lose in 2021?

The net loss for Almonty Industries in 2021 was $7,753,000.

What is the status of the Sangdong project?

The Sangdong project is over 25% complete with more than $23.2 million invested.

What significant development occurred at Panasqueira in 2021?

A new tailings dam was completed at Panasqueira, ensuring operations for another 20 years.

How much cash did Almonty have as of December 31, 2021?

As of December 31, 2021, Almonty Industries had cash totaling $1,048,000.