Here's a sentence you don't read every day: the Pentagon is handing a tungsten company a few hundred million dollars, and the stock is up almost 48% before the opening bell even rings.
The Elmet Group Co. (ELMT) shares climbed almost 48% during Monday's premarket session. The catalyst: the company disclosed plans to use part of a $450 million committed investment from the United States Department of Defense to boost the tungsten supply chain and expand U.S. manufacturing units.
Under the agreement, the funding begins with a $200 million drawdown at closing, followed by additional draws.
In return, the Defense Department gets redeemable preferred equity, warrants covering up to 19.9% of ELMT's common stock on a post-transaction basis, and rights to appoint one independent director and one non-voting Board observer.
ELMT has also entered into a restricted entity compliance plan with Continental Stock Transfer & Trust Company as rights agent.
Where The Money Goes: Maine, Michigan, Ohio And Nevada
The planned investments will support domestic production, secure long-term supplies of key raw materials and develop an integrated global network spanning sourcing, processing and refining operations.
In particular, the tungsten supplier plans to invest more than $165 million to expand and modernize facilities in Lewiston, Maine; Coldwater, Michigan; and Euclid, Ohio, increasing capacity for tungsten heavy alloy and powder products.
About $150 million is planned for the Springer Tungsten Complex in Imlay, Nevada, where ELMT plans a majority-owned joint venture with Blue Moon Metals and EQ Resources to restart and expand APT conversion.
The mine and mill are expected to restart in the fourth quarter of 2027, with the APT facility targeted for the second half of 2028.
Notably, ELMT supplies tungsten to U.S. defense programs including Patriot, Javelin, AEGIS, Trident II and THAAD, as well as Virginia- and Columbia-class submarines. It is the only U.S.-owned vertically integrated tungsten producer serving these markets.
Apart from this, the company expects to use up to $150 million to support investments and partnerships involving the Mt. Carbine Mine in Australia and the Barruecopardo Mine in Spain.
A $2 Billion Contract From The Defense Logistics Agency
Separately, ELMT's subsidiary won an IDIQ contract from the Defense Logistics Agency (DLA) worth up to $2 billion.
It includes a guaranteed $150 million commitment to supply tungsten ores, concentrates and sodium tungstate for rebuilding the U.S. National Defense Stockpile.
The contract includes a five-year base period through Aug. 30, 2031, plus a two-year extension option through Aug. 30, 2033.
ELMT will begin deliveries only after new supply becomes available through its mining, offtake and processing investments, with phased deliveries tied to capacity coming online from suppliers including Blue Moon Metals' Springer Mine in Nevada and EQ Resources' Mt. Carbine Mine in Australia and Barruecopardo Mine in Spain.
What's Next: Earnings And Analyst Targets
Looking further out, the next major catalyst for the stock arrives with the Nov. 25, 2026 (estimated) earnings report.
- EPS Estimate: 15 cents
- Revenue Estimate: $62.27 million
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $20.67. Recent analyst moves include:
- Canaccord Genuity: Buy (Raises Target to $21.00) (Aug. 17)
- Cantor Fitzgerald: Initiated with Overweight (Target $20.00) (May 18)
- Canaccord Genuity: Initiated with Buy (Target $20.00) (May 18)
ELMT Price Action: The Elmet Group shares were up 47.00% at $23.80 during premarket trading on Monday. The stock is trading at a new 52-week high, according to market data.
