We have highlighted "owning the bottlenecks" as one of our core themes (aside from nuclear, AI, etc.) as China tightens control over critical materials and the West races to secure conflict-free supplies ahead of a rearmament supercycle. Miners with operating assets and near-term delivery capacity are best positioned to capture the next leg of the cycle, as Western governments seek reliable and conflict-free supplies.
Mining equities have largely de-rated since their May peak, retracing the massive gains made in early 2025, when Beijing's restrictions on tungsten, germanium, gallium, and other defense-critical materials helped spark the rally. We view the pullback as a correction within a broader structural bull market, with the next phase likely to reward miners capable of converting ore into finished critical materials that meet the coming surge in demand from the defense industry.
We view tungsten, a defense-critical metal, as one of the most critical metals needed for the rearmament supercycle because of its high density, heat resistance, and performance in wear-resistant materials. This metal is commonly found in armor-piercing ammunition, missiles, interceptors, fighter jets, and bombers, and the list of defense applications is endless.
Ahead of Almonty Indust
