Resource Talks

Can a $300M Tungsten Company Really Build a Mine by 2027? | Allied Critical Metals Interview

The interview with Allied Critical Metals (ACM) CEO Vitor Ribeiro centers on the company’s ambition to bring the Borralha tungsten project in northern Portugal into production by 2027. The discussion walks through the recently released pre‑feasibility study (PEA), which values the mine at an after‑tax net present value of roughly $0.5 billion, an internal rate of return near 50%, and a capital expenditure bill of about $90 million for an 11‑year life‑of‑mine. The PEA assumes a long‑term tungsten price of $1,000 per metric ton of UO₃, delivering a 2.2‑year payback and a break‑even cost around $300/MTU, with healthy margins above $400. Key data points include a projected production profile that scales from historic artisanal output to bulk mining, a resource conversion that places only 40% of inferred resources into the economic model, and a flexible mining plan that can target higher‑grade corridors if market prices dip. The company’s capital structure shows a market cap near $293 million, a share price around $1.80—close to its 52‑week high—and a significant pool of in‑the‑money warrants and options, underscoring investor optimism tied to tungsten’s price rally. Ribeiro emphasizes that tungsten’s strategic importance extends beyond defense, citing its role in electric‑vehicle batteries, construction, and national stockpiles. He argues that even a worst‑case price of $1,000/MTU is realistic, referencing historical price peaks of $3,000–$10,000 (inflation‑adjusted) and the metal’s long‑term stabilization between $1,000 and $2,000. Water management, a legacy issue from the old mine, will be handled via dewatering galleries at the –60 m level, leveraging the hard crystalline geology to control inflows. The project’s economics suggest a potentially lucrative entry point for investors seeking exposure to critical metals, while the modest capex and rapid payback reduce financing risk. If ACM can secure funding—whether through equity, debt, or a strategic partner—the Borralha mine could become a cornerstone of Europe’s tungsten supply chain, mitigating reliance on Chinese exports and supporting the broader transition to green technologies.