Almonty Announces the Filing of Its Unaudited Interim Condensed Consolidated Financial Statements and MD&A for the Six Months Ended June 30, 2021

Rhea-AI Summary

Almonty Industries reported its unaudited financial results for the six months ending June 30, 2021. The company recorded a net loss of $2.66 million, compared to a profit of $0.25 million during the same period last year. Gross revenue decreased to $5.60 million, down from $6.99 million. Despite this, production at the Sangdong tungsten mine is advancing, with a 54% increase in tungsten prices to $315 per MTU. Almonty aims to leverage its unique position in the tungsten market to meet the growing demand.

Positive

• Tungsten prices increased 54% to $315 per MTU, indicating potential for higher revenue.
• Sangdong mine construction is progressing on schedule, positioning Almonty as a significant player in non-Chinese tungsten production.

Negative

• Net loss of $2.66 million compared to a profit last year.
• Gross revenue decreased to $5.60 million from $6.99 million.
• General and administrative costs increased to $1.53 million from $2.07 million.

Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: 1MR) today announced the filing of its unaudited interim condensed consolidated financial statements and management’s discussion & analysis (“MD&A”) for the six months ended June 30, 2021. Unless otherwise indicated, all currency amounts contained in this news release are expressed in Canadian dollars.

The following financial information is for the three and six months ended June 30, 2021 and 2020:

	Three months ended		Three months ended		Six months ended		Six months ended
	30-Jun-21		30-Jun-20		30-Jun-21		30-Jun-20
	$'000		$'000		$'000		$'000
Gross Revenue	5,603		6,991		9,461		13,382
Mine production costs	4,740		4,899		8,687		10,627
Care and maintenance	288		115		488		713
Depreciation and amortization	377		419		948		1,128
Income (Loss) from mining operations	198		1,558		(662)		914
General and administrative costs	1,532		2,070		3,075		3,690
Share-based compensation costs	-		-		522		207
Loss before the under noted items	(1,334)		(512)		(4,259)		(2,983)
Interest expense	882		753		1,668		1,417
(Gain) Loss on debt settlement	-		-		-		(1,619)
Loss on valuation of embedded derivative liabilities	(40)		-		151		-
Foreign exchange (gain) loss	487		(1,518)		(339)		1,026
Tax provision	(3)		-		6		-
Net loss for the period	(2,660)		253		(5,745)		(3,807)
Income (loss) per share - basic	($0.01)		$0.00		($0.03)		($0.02)
Income (loss) per share - diluted	($0.01)		$0.00		($0.03)		($0.02)
Dividends	-		-		-		-
Cash flows provided by (used in) operating activities	(1,150)		(1,410)		(4,859)		(2,667)
Cash flows provided by (used in) investing activities	(2,007)		(849)		(3,639)		(1,923)
Cash flows provided by (used in) financing activities	3,006		755		7,408		5,091

The following financial information is as at June 30, 2021 and December 31, 2020:

					30-Jun-21		31-Dec-20
					$'000		$'000
Cash					1,235		2,372
Restricted cash					-		-
Total assets					151,466		151,063
Long-term debt					63,819		61,524
Shareholders’ equity					27,065		29,169
Other
Outstanding shares (‘000)					192,452		183,464
Weighted average outstanding shares (‘000)
Basic					188,514		183,263
Fully diluted					188,514		183,263
Closing share price					$1.05		$0.65

Lewis Black, Chief Executive Officer of Almonty commented: “With the financial close with KFW-IPEX Bank now imminent after the successful IPO and dual listing in Australia, we are now gearing up to fully focus on the construction of the World’s highest-grade longest-life Tungsten mine. Work at the Sangdong Mine site has been accelerating in anticipation of the financial close and I would like to direct all shareholders to monitor our website as progress is documented almost daily. We are on schedule. The price of Tungsten has steadily been increasing for the past 12 months and is now up over 54% to US$315 per MTU. As we lag copper, all expectations are that pricing will continue to firm up through the rest of this year and into 2022. Tungsten has now been fully acknowledged as one of the leading technology metals in the push to a global greener future and the Company will have further news as to the programs that it is directly involved with in South Korea and that will follow shortly. Sangdong offers a global alternative of supply that will account for over 30% of non-Chinese production, comply with the highest levels of ESG throughout all areas of the project including the construction and operation without exception and will move toward carbon neutrality as all current energy provided to the site is renewable. Sangdong will play a strategically important role for the Tungsten Industry in being currently the only tungsten mine in the world that can conform to the modern demands of the international supply chain.”

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.

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FAQ

What are Almonty's financial results for the six months ending June 30, 2021?

Almonty reported a net loss of $2.66 million and gross revenue of $5.60 million.

How has the tungsten price changed recently for Almonty?

The price of tungsten has increased by 54% to $315 per MTU.

What is the status of the Sangdong mine project?

Construction at the Sangdong mine is progressing on schedule.

What was the change in Almonty's general and administrative costs?

General and administrative costs rose to $1.53 million from $2.07 million.