Almonty Achieves Positive EBITDA from Mining Operations(1) of $12,702,000 And Net Income of $0.04 Per Share in Q3 of FY 2018

TORONTO--()--Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / OTCQX: ALMTF / Frankfurt: 1MR) today announced the filing of its unaudited interim condensed consolidated financial statements and management’s discussion & analysis for the three and nine months ended June 30, 2018. 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 nine months ended June 30, 2018 and 2017:

Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
30-Jun-18 30-Jun-17 30-Jun-18 30-Jun-17
        $ '000     $ '000     $ '000     $ '000  
Gross Revenue 22,473 10,974 50,542 28,209
Mine production costs 9,771 7,641 27,283 24,359
Depreciation and amortization   2,129       2,031       6,474       4,525  
Earnings (loss) from mining operations 10,573 1,302 16,785 (675 )
General and administrative costs 2,164 2,363 5,932 6,591
Share-based payments expense   897       -       897       -  
Earnings (loss) before the under noted items 7,512 (1,061 ) 9,956 (7,266 )
Interest expense 760 662 1,992 1,939
Foreign exchange (gain) loss 858 (814 ) 1,173 (244 )
Tax provision         (639 )     -       (1,350 )     -  
Net income (loss) for the period         6,533       (909 )     8,141       (8,961 )
Income (loss) per share basic       $ 0.04       ($0.01 )   $ 0.05       ($0.08 )
Income (loss) per share diluted       $ 0.04       ($0.01 )   $ 0.05       ($0.08 )
Dividends         -       -       -       -  
Cash flows provided by (used in) operating activities 6,020 1,658 6,698 523
Cash flows provided by (used in) investing activities (2,558 ) (1,536 ) (5,992 ) (9,539 )
Cash flows provided by (used in) financing activities         (1,752 )     (94 )     2,214       6,228  

The following financial information is as at June 30, 2018, and September 30, 2017:

30-Jun-18 30-Sep-17
        $ '000   $ '000
Cash 7,433 4,473
Restricted cash 1,294 1,300
Total assets 177,979 160,151
Bank indebtedness - 9,447
Long-term debt 53,872 44,659
Shareholders’ equity 59,462 45,625


Outstanding shares (‘000) 181,442 169,752
Weighted average outstanding shares (‘000)
Basic 178,048 110,896
Fully diluted 180,348 110,896
Closing share price       $ 0.930   $ 0.63

Lewis Black, Chief Executive Officer of Almonty, commented, “The Company’s income from mining operations recorded in Q3 of fiscal 2018 was $10,573,000, an increase of $5,520,427 over that recorded in Q2 of fiscal 2018. The EBITDA from mining operations jumped to $12,702,000 compared to $3,333,000 for the same period in fiscal 2017. We are also pleased to announce a positive net income of $6,533,000, or $0.04 per share, for Q3. The Company’s results from mining operations have significantly improved as a consequence of our new fixed-price contracts and strong market contract prices while costs continued to decrease, reflecting the continued strengthening of tungsten demand and price globally. The current Tungsten price is continuing to strengthen and sits above the Q3 price received. With our Sangdong off-take agreement in place, we continue to move towards finalizing our US$85 million project financing and have already commenced the build-out of our Sangdong Mine located in South Korea with site demolition completed and initial mine development commencing.”

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 refurbishment of its Wolfram Camp Mine in north Queensland, Australia, 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 Wolfram Camp Mine was acquired by Almonty in September 2014 and is located approximately 130 kilometres west of Cairns in northern Queensland, Australia and has produced tungsten and molybdenum concentrate, although the Wolfram Camp Mine is not currently producing due to ongoing refurbishment of the processing plant. 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 and under Almonty’s profile at

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.

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 in this press release include, among others, statements regarding Almonty’s future business plans and operations, the continued increase in global demand for Tungsten, the financing and build-out of the Sangdong mine and anticipated timing thereof. 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 of 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 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.


(1) Non-GAAP Financial Measures

This press release makes reference to certain non-GAAP financial measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS financial measures by providing further understanding of Almonty’s results of operations from management’s perspective. Almonty’s definitions of non-GAAP measures used in this press release may not be the same as the definitions for such measures used by other companies in their reporting. Non-GAAP measures have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of Almonty’s financial information reported under IFRS. Almonty uses non-GAAP financial measures, including “EBITDA”, to provide investors with supplemental measures of its operating performance and to eliminate items that have less bearing on operating performance or operating conditions, and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Almonty defines “EBITDA from mining operations” as gross revenue less mine production costs.

Almonty believes that securities analysts, investors and other interested parties frequently use non-GAAP financial measures in the evaluation of issuers. Almonty’s management also uses non-GAAP financial measures in order to facilitate operating performance comparisons from period to period.


Almonty Industries Inc.
Lewis Black, +1 647-438-9766
Chairman, President and CEO


Almonty Industries Inc.
Lewis Black, +1 647-438-9766
Chairman, President and CEO