The Tungsten Bet Everyone’s Missing

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00:00Well, if you haven't heard of Appaton, it's probably because they're too busy cutting through

00:10the market noise to surface what actually matters. This isn't your average research shop. They're

00:16tracking unvalued, under-the-radar names before the rest of the market even looks up. Now, we sat

00:22down with Mario House of Appaton to dig into what they're watching, starting with a tungsten play

00:27that's gaining serious momentum, Almonte Industries. Welcome. It's great to have you here with us.

00:33Thank you for having me. Okay. So tell us a bit about Appaton to begin with and really what you're

00:38up to right now. Yeah. So we are a company based in Germany and we are two companies. One is an

00:45investment firm, one is an advisory firm. And we invest in companies that are in the growth stage

00:51and we also help them to get the word out. So we help them with branding. Okay. Good to hear. Now,

00:57as you said, you are based in Germany. That's one of the strongest, most stable

01:03industrial economies on the planet right now. So, I mean, how does that shape what you do?

01:10Yeah. So when we want to put small and mid-sized companies into the focus, then you need to have an

01:16audience that could be of interest and exciting. And the German-speaking region is quite a big region.

01:24So it's not only Germany, it's also Austria, Switzerland, Liechtenstein, Luxembourg and all

01:30those countries. So we talk about more than 105 million people and a lot of investment firms and

01:37organizations are located there. That means when you get the word out in the German-speaking region,

01:44that means a lot. And when we look at the numbers, 105 million people live there. That's three-fold

01:50of Canada. So when you're in the resource space, in the resource sector here in Canada, you have,

01:57I don't know, 80% of the industry here in Canada is resource-related, I believe. So in the German-speaking

02:03region, it's not that many. So for that reason, when you have the opportunity to get in front of an

02:10audience that does not have so much competition like you have here in Canada, where everybody's

02:16chasing the same investor, then it's a big, big opportunity. And I think with Almonte, as you just

02:23already mentioned, we already have achieved a big success to get a lot of people in that part of the

02:33world to be interested in the company. So let's actually unpack Almonte a little bit more. Using

02:40that as an example, tell us a bit about that. Yeah, so Almonte is a unique company, I would say.

02:48So I'm long enough in the business to say that I can basically can judge it. Because this CEO,

02:56Lewis Black, he is a founder, he has skin in the game, he put in his money, he was not getting free

03:04shares, he was investing money, serious money. And so he's running the company from an investor's

03:13perspective. And so that makes it very different compared to others. And on a daily basis, what I've

03:22been witnessed in the past four years, it's tough to build a business, especially of that size.

03:30Almonte will become the biggest tungsten producer outside Russia, China, North Korea, and Iran. So the

03:38production will be starting in the biggest mine in South Korea in the next couple months, so in the

03:46summer. So it's imminent, more or less. So when you look at the Lassonde curve, then you know, okay,

03:54this is the time now where you can really make money in a quick way, I would say. So when you have

04:01something that the world needs, and because there are so many restrictions and sanctions around tungsten,

04:09and the need is still there, especially in the Western world, there won't be armored vehicles, there won't

04:14be ammunition available when you don't have tungsten. And the reality is, even an iPhone would not have

04:21this vibration component without tungsten. So what is the value of Almonte? From my perspective, this is

04:29a unique company. The market cap currently is about 500 million US dollars. And there's another

04:36rarest company in the US, which is called MP Materials. Their market cap is 4 billion. And

04:44so I think there's, it's a great company. I'm happy to work with.

04:49So there seems to be actually a lot in the bucket for Almonte right now. Maybe you can give us just

04:54a little bit more insight on what that looks like for Almonte in the future.

04:59Yeah, so if you followed the news just recently, they're currently preparing a Nasdaq listing. So it can

05:07be happened sometime soon. So a Nasdaq listing will mean that a lot of new investors from the US market

05:16have the opportunity to trade the stock. So the liquidity will go up, the demand will go up, and

05:20normally the share price goes up. And so that is a good situation for investors who are looking at an

05:31opportunity like this. At the same time, there's so much panic in the market in regards to tungsten supply

05:40that Almonte basically is a takeover target. So an iPhone wouldn't vibrate without tungsten and

05:49other equipment wouldn't be available. So tungsten is really, really important. And

05:54I believe that shareholders will have a good investment for the future.

06:04Well, I mean, if Apaton is not on your radar yet, you are already behind. And they're not chasing hype,

06:11they're actually uncovering what actually moves markets. So to learn more, head over to apaton.com

06:17and see what you've been missing. I'm Lindsay Melchuk. We'll see you next time.

06:24you

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