Elmet Group Wins $2B US Tungsten Stockpile Contract
ELMT sits 83% above its 52-week low of $12.485 on light trading volume (0.3× avg).
Summary
Elmet Group secured a $2 billion contract from the U.S. Defense Logistics Agency to supply tungsten ores, concentrates, and sodium tungstate for the National Defense Stockpile. The deal includes a guaranteed funded commitment of $150 million, with deliveries deferred until additional supplies are secured through mining investments and offtake agreements. This follows the $450 million Department of War investment announced earlier today, which includes $200 million at closing and warrants for up to 19.9% of Elmet's stock. The company plans to invest over $165 million in facilities across Maine, Michigan, and Ohio to expand production capacity. The contract strengthens Elmet's position in the U.S. tungsten supply chain amid efforts to reduce reliance on China and Russia.
At the time of this announcement, ELMT was trading at $22.91 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $493.1M. The 52-week trading range was $12.49 to $22.51. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.