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

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 25
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 at the Panasqueira Mine as well as the care and maintenance costs at the Los Santos Mine are incurred in euros, and a
significant portion of development costs at the Sangdong Mine are incurred in Korean won. Each of these currencies has also fluctuated
significantly against the U.S. dollar over the past several years. The Company may engage in mitigating transactions to limit its exposure
to such risks, but there can be no assurance that any mitigating strategy will, if entered into, be successful. There can be no assurance
that foreign exchange fluctuations will not materially adversely affect the Company’s financial performance and results of operations.

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Fluctuation in Interest Rates

Almonty’s
exposure to the risk of changes in market interest rates relates to cash at banks and long-term debt with a floating interest rate. Of
its long-term debt, $130,986,000 is subject to floating interest rates and $37,608,000 is subject to fixed interest rates. A portion
of its floating rate debt totalling $24,110,000 is subject to a fixed spread over the 6- and 12-month Euro Interbank Offered Rate (Euribor)
rates. A change of 100 basis points (1%) in the rates would result in a $241 change in annual interest costs. The remaining floating
rate debt of $106,876,000 is based on a fixed spread over the 3-month secured overnight financing rate (SOFR). A change of 100 basis
point (1%) in the 3-month SOFR rate would result in a $1,069,000 change in annual interest costs. All figures are provided in this
risk factor are as at December 31, 2024.

The Company
may in the future become a borrower of an additional material amount of funds or repay its existing outstanding long-term debt at any
time without penalty. The Company’s primary operations are located in South Korea, Spain, and Portugal. The ongoing uncertainty
in the financial markets may have a negative impact on both the Company’s future borrowing costs and its ability to obtain debt
financing.

Inflation

The Company is also affected by inflationary
pressures. Inflation rates in the jurisdictions in which the Company operates have increased significantly since 2021. A significant
portion of the upward pressure on prices has been attributed to the rising costs of labour and energy. These inflationary pressures have
affected the Company’s labour, commodity and other input