Company: ALM
Filing Date: 2025-07-11
Form Type: F-10/A
Source: 0001641172-25-018741
Chunk: 24

Company: Almonty Industries Inc.
Filing Date: 2025-07-11
Form: F-10/A
Chunk 24
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may affect the Company’s ability to generate positive cash flow from operations. The Company’s current mine plans and mineral
reserve and mineral resource estimates for the Sangdong Mine are generally based on an APT price of US$450
per MTU. If the price of tungsten falls below such level, the Sangdong Mine may be rendered uneconomic and production may be suspended.
In addition, lower tungsten prices may require the mine plans to be changed, which may result in reduced production, higher costs than
anticipated, or both, and the estimate of mineral reserves for the Sangdong Mine and Mineral Resources may be reduced. Also, increased
volatility in the price of tungsten may result in the Company delaying or abandoning some of its growth projects.

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From time to time,
the Company enters into supply agreements with customers which fix the price of the product its sells for periods of time the Company
deems appropriate.

Economic Dependency

Although the Company
sells its tungsten concentrate to Japanese, European and North American customers, the majority of the revenue earned by the Company’s
current operations are derived from sales to two customers and their affiliates under short-term supply agreements for the minerals produced
at the Panasqueira Mine (the “Panasqueira Customers”). Beralt Tin & Wolfram (Portugal), S.A. (“BTW”),
an indirect wholly-owned subsidiary of the Company, is a party to such agreements, which are typically renewed on an annual basis. The
Company has also entered into an amended off-take agreement, originally dated March 12, 2018, (the “Amended Off-Take Agreement”)
with GTP for the tungsten concentrate to be mined and processed at the Sangdong Mine. Almonty is economically dependent on the revenue
received from the Panasqueira Customers in order to be able to meet its current obligations, and will be economically dependent on the
revenue received from GTP pursuant to the Amended Off-Take Agreement once the Sangdong Mine reaches commercial production. There is no
guarantee that Almonty would be able to find alternative customers on terms similarly advantageous in the future should the Panasqueira
Customers or GTP cease operations or become unable to pay Almonty.

Currency Risk

Fluctuations in foreign currency exchange rates
may adversely affect the Company’s results of operations.

The Company’s operating results and cash
flow are significantly affected by changes in exchange rates. BTW operates in Portugal,