Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 77

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 77
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 evaluating new opportunities to expand our commercial partnerships.
As we increase our production, we expect to sign new offtake contracts with customers with favorable economics. These offtake contracts
are anticipated to supply, among others, end-use customers in the defense and military sector.

Target Operating
Model

Based on an assumed
flat APT price of US$350 per MTU and incorporating contributions from current operations at the Panasqueira Mine (including the anticipated
Level 4 extension), as well as Phase I of the Sangdong Mine and the potential Phase II expansion, the Company is targeting a gross margin2
in the range of 50% to 60% and a net income margin3
in the range of 30% to 40%. To the best of management’s knowledge, these targets reflect the current development status and expected
performance of the Company’s operations. The Level 4 extension at Panasqueira and Phase II at the Sangdong Mine are not yet in
production and remain subject to development and financing. These figures are forward-looking, based on management estimates, and subject
to the assumptions and risks described under “Cautionary Note Regarding Forward-Looking Information” and “Risk Factors”.

Gross margin and
net income margin are supplementary financial measures as defined under National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosures.

Customers and
Contracts

Our tungsten and
future molybdenum products are secured under long-term, floor-priced offtake agreements with customers in national defense, aerospace,
and high-technology manufacturing. We supply tungsten to metals processors and tungsten product manufacturers for defense applications,
as well as for the tooling, electronics and other industrial sectors, with a diversified customer base focused across the U.S., EU
and Japan. With the additional production expected from the Sangdong Mine, we have also secured offtake agreements with several blue-chip
customers:

| ● | GTP: GTP, a subsidiary                                                                     
 of the Plansee Group, is a major global tungsten product manufacturer and a U.S. defense   
 contractor. The 15-year offtake agreement concluded with GTP includes a guaranteed floor   
 price of US$183 per MTU based on an APT reference price of US$235 per MTU with no upside   
 cap. The materials are exclusive to defense-only programs under U.S. Department of Defense 
 (“DoD”) guidelines to support munitions, weapons systems and defense-grade                 
 manufacturing.