Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 26

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 26
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 costs and such pressures may or may not be transitory. Any continued inflation
or increase in the inflation rate for the Company’s inputs, including as a result of increased tariffs affecting countries in which
the Company operates or that are part of the Company’s supply chains may have a material adverse effect on the Company’s
operating costs, capital expenditures for the development of its projects as well as its financial condition and results of operations.

Tax-Related Risks

The Company operates
in multiple jurisdictions with varying tax regimes, and its global operations may expose it to changes in tax laws and interpretations
that could adversely affect profitability. The effective tax rate may change from year to year based on a multitude of factors. Changes
to international, regional, or local tax regulations, including transfer pricing, withholding taxes, and corporate tax rates, may result
in higher effective tax rates or unexpected tax liabilities. Furthermore, the classification of income from foreign jurisdictions, such
as South Korea, Spain, and Portugal, could impact the Company’s cash flow and financial reporting.

The Company also
enters into transactions and arrangements in the ordinary course of business in which the tax treatment is not entirely certain. The
Company must therefore make estimates and judgments in determining its consolidated tax provision. The final outcome of any audits by
taxation authorities may differ from estimates and assumptions used in determining the consolidated tax provisions and accruals. This
could result in a material effect on income tax provision, financial position and the net income/loss for the period in which such determinations
are made. See “Risks Related to Almonty’s Redomiciling to the United States—Canadian Corporate Tax Risk.”

Default Risk

The Company’s term loans and convertible
debentures include various positive and negative covenants as well as cross-default clauses. Events beyond the Company’s control,
including changes in general economic and business conditions and global health crisis or pandemics may affect the Company’s ability
to satisfy these covenants, which could cause several defaults in the event the Company is in default on any of its loan agreements.

In addition, as
of the date of this prospectus, the Company has pledged certain of its assets as security in order to obtain additional capital through
loans.

Should Almonty fail
to comply with its covenants, pay any outstanding amount or remedy an event of default (as defined under the loan agreements), the lender
may, among other things, have the right to demand immediate repayment of the outstanding debt or to