Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 39

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 39
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 of water rights for any of the Company’s
mines, in whole or in part, or shortages of water to which the Company has established rights, could impact existing operations or prevent
future exploration. Further, laws and regulations may be introduced in the jurisdictions in which the Company operates which could limit
its access to sufficient water resources. Additionally, failure to manage water discharge or contamination risks could lead to environmental
liabilities and reputational damage.

Any of the foregoing could have a material adverse
effect on the Company’s results of operations and financial performance.

Infrastructure and Operational Risks

The Company’s
operations depend on the effective maintenance and operation of its mining infrastructure, much of which, in Portugal and Spain, has
been in service for many years. Aging infrastructure may result in increased maintenance costs, unexpected equipment failures, or operational
disruptions. Additionally, delays or interruptions in the transportation of tungsten concentrate to global markets, whether caused by
logistical bottlenecks, weather-related events, or third-party disruptions, could adversely affect operations.

Impairment of Assets

The Company conducts annual impairment assessments
of goodwill and, at the end of each reporting period, the Company assesses whether there is any indication that long-lived assets (such
as mining properties and plant and equipment) may be impaired. If an indicator of impairment exists, the recoverable amount of the asset
is calculated in order to determine if any impairment loss is required. Testing for impairment involves a comparison of the recoverable
amount of the cash-generating unit to its carrying value. An impairment charge is recognized for any excess of the carrying amount of
the asset group or reporting unit over its recoverable amount. For example, during fiscal 2019, the Company completed the mining of the
remaining ore and commenced reprocessing the tailings inventory at the Los Santos Mine. During the period in which tailings were reprocessed,
the Company achieved WO recovery rates below those previously estimated and, as a result, recorded an impairment of tailings
inventory of $5.8 million, representing an adjustment to the lower of cost and net realizable value. As a result of the impairment test
performed for fiscal 2019, impairments of $3.3 million and $1 million were recorded to property, plant, and equipment and mineral property
acquisition and development, respectively, based on the estimated fair value fewer costs to sell off the remaining property, plant, and
equipment at the Los Santos Mine. In addition, as a result