Roy Bonnell Says Allied Critical Metals’ Borralha Tungsten Project Shows Billion-Dollar Potential as Western Supply Tightens

Key Takeaways

• PEA shows $706M NPV at $1,500/mtu tungsten price.
• Initial capex estimated at $91 million for 11‑year mine.
• Project could surpass $1 billion NPV with further drilling.
• Located in Portugal, leveraging first‑world infrastructure.
• Aims to cut Western reliance on Chinese tungsten.

Summary

Allied Critical Metals released a Preliminary Economic Assessment for its Borralha tungsten project in northern Portugal, estimating an after‑tax NPV of $706.4 million at a $1,500 per metric tonne WO₃ price and $91 million initial capital for an 11‑year mine life. CEO Roy Bonnell said the project could exceed a billion‑dollar NPV as additional drilling progresses. With 85 % of global tungsten sourced from China, the Portuguese assets offer a strategic, infrastructure‑rich alternative. The company now seeks financing, off‑take agreements, and aims to restart production before peers.

Pulse Analysis

Tungsten’s role in aerospace, defense, and renewable‑energy technologies has intensified scrutiny of its supply chain, especially as geopolitical tensions expose the risks of heavy reliance on China, which now provides roughly 85 % of global output. Industry analysts warn that any disruption could ripple through sectors that depend on high‑strength alloys, prompting governments and manufacturers to seek alternative sources that can guarantee both volume and stability.

The Borralha project’s Preliminary Economic Assessment delivers a compelling financial case: an after‑tax net present value of $706 million at a conservative $1,500 per metric tonne price, with capital expenditures projected at $91 million for an 11‑year operation. Situated in Portugal, the deposit benefits from robust transportation networks, reliable power, and a skilled workforce, dramatically lowering the time and cost barriers typical of remote mining ventures. Allied’s strategy to secure financing and off‑take contracts quickly could accelerate construction, positioning the company as one of the first western producers to bring new tungsten to market.

If Allied can translate its PEA into a funded, operational mine, the broader market may see a shift toward diversified sourcing, potentially easing price volatility and encouraging downstream manufacturers to hedge against Chinese supply shocks. Investors are likely to monitor the company’s financing milestones and drilling results closely, as successful execution could unlock additional value beyond the current billion‑dollar NPV estimate, reinforcing Portugal’s emerging reputation as a critical minerals hub.