Almonty Industries Inc. Q2-2024 Financial Report

Almonty Industries Inc. (ASX: $ALL) has announced the filing of its unaudited condensed interim consolidated financial statements and management's discussion & analysis for the six months ended June 30, 2024. The company reported $2,401,000 in positive EBITDA from mining operations and provided updates on its financial performance and ongoing projects.

Executive Commentary

While our Panasqueira mine in Portugal consistently provides a positive EBITDA from mining operations, Almonty's Q2-2024 loss includes non-cash charges of approximately $450k for interest settled by share issuance, share-based compensation expense of $935k and $1.3 million of unrealized foreign exchange loss. EBITDA from mining operations at our Panasqueira mine was $2,401,000 for the six months ended June 30, 2024 and is in line with equaling or exceeding $10 million of EBITDA from mining operations for the year ending December 31, 2024. In addition, the company continued to clean up its balance sheet by converting over $9 million of long-term debt into shares of the company as well as push out the maturity date of an additional $21.4 million of long-term debt to March 2027. The company's working capital deficiency has also shown a significant positive trend with a decrease of 79% from $30.4 million as at December 31, 2023 down to $6.1 million as at June 30, 2024. The build-out of our Sangdong Mine is in full swing towards completion of construction, with drawdowns on our KfW IPEX-Bank US$75.1 million loan facility being received on time and as planned and with the 7th and 8th drawdowns, totaling US$10.64 million, having been received during July 2024. In addition, given the fact that our underground Panasqueira mine, with a grade of 0.14%, is providing a significant positive EBITDA from mining operations, the company expects very positive results from its underground Sangdong mine in South Korea, once it commences production, given its 0.46% grade of material to be mined.

Summary of Q2-2024 Financial Report

Almonty Industries Inc. (ASX: $ALL) reported a positive EBITDA from mining operations at its Panasqueira mine for the six months ended June 30, 2024, and aims to achieve or exceed $10 million of EBITDA from mining operations for the year ending December 31, 2024. The company has made significant progress in cleaning up its balance sheet by converting long-term debt into shares and extending the maturity date of additional long-term debt. The working capital deficiency has decreased by 79% from December 31, 2023 to June 30, 2024. Almonty is optimistic about the results from its Sangdong mine in South Korea, given the positive performance of its Panasqueira mine and the expected grade of material to be mined. The company continues to focus on the development of its mining projects and the production of tungsten concentrate from its mines in Spain and Portugal, as well as the Sangdong mine in South Korea and the Valtreixal tin/tungsten project in Spain.