Company: ALM
Filing Date: 2025-07-11
Form Type: F-10/A
Source: 0001641172-25-018741
Chunk: 39

Company: Almonty Industries Inc.
Filing Date: 2025-07-11
Form: F-10/A
Chunk 39
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 changes or shortages in energy supply. Any significant disruption to energy availability
or cost increases could adversely affect operational efficiency and profitability.

Water Supply and Management

Water is a critical input to the Company’s
present and planned mining operations, and the amount of water resources in the regions in which the Company operates requires
the Company to consider current and future conditions in its management of water resources. Current and long-term risks include those
that arise as a result of the Company’s operations and events that are out of the Company’s control such as extreme weather
and other physical risks associated with climate change such as changes in rainfall and water availability.

Changes in the quantity of water in regions where
the Company operates, whether excessive or deficient amounts, may affect exploration and development activities, mining and processing
operations, water management and treatment facilities, tailings storage facilities, closure and reclamation efforts, and may increase
levels of dust in dry conditions and land erosion and slope stability in case of prolonged wet conditions.

Water shortages may also result from environmental
and climate events that are out of the Company’s control and ability to manage. For example, inadequate rainfall or the occurrence
of drought may stop operations, which could materially affect production. Conversely, excessive rainfall or flooding may also result
in operational difficulties, including geotechnical instability, increased dewatering demands, and additional water management requirements.
In addition, the Company cannot predict the potential outcome of pending or future legal proceedings or negotiations related to water
rights, claims, contracts and uses, which may impact the Company’s operations. The loss 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 bott