The Elmet Group (ELMT) Investor update summary

Strategic investments and partnerships

• Secured a $450 million investment from the U.S. Department of War to expand tungsten processing and manufacturing, with an initial $200 million draw and future tranches tied to milestones; DoW receives redeemable preferred equity, warrants for up to 19.9% of common stock, and board representation rights.

• Entered a framework agreement with the Defense Logistics Agency (DLA) for an IDIQ contract valued up to $2 billion, with $150 million committed, supporting the National Defense Stockpile and strengthening the tungsten supply chain.

• Announced the acquisition of ams OSRAM's Schwabmünchen facility in Germany, establishing a European manufacturing base for tungsten and molybdenum, expected to close in Q1 2027; no DoW funding will be used for this acquisition.

• Formed a joint venture with Blue Moon Metals and EQ Resources to restart and expand APT conversion at the Springer facility in Nevada, targeting the first independent U.S. APT facility, with $150 million investment.

• Strategic investments in the U.S., Australia, and Spain to create a resilient, China-independent tungsten supply chain.

Capacity expansion and operational upgrades

• Over $165 million allocated to upgrade and expand U.S. facilities in Maine, Michigan, and Ohio, including new equipment, infrastructure modernization, and increased furnace capacity.

• Plans to increase tungsten powder production capacity by approximately five times, supporting over 125 defense programs and 90 national lab programs.

• Modernization and equipment procurement to occur in 2027, with expanded capacity coming online in late 2028 and full run rate targeted by 2031.

• Expanded U.S. and European manufacturing footprint, with full run-rate capacity expected by 2031.

• Deliveries to the National Defense Stockpile will be phased as new supply comes online, ensuring no disruption to current U.S. manufacturers.

New business divisions and supply chain integration

• Launched Elmet Refining & Trading (ERT) division to manage APT conversion, mine offtake agreements, and coordinate sourcing, refining, and delivery across the tungsten supply chain.

• ERT to invest $150 million in the Springer complex, with $75 million for the APT plant and $75 million in Blue Moon through equity and prepayment for tungsten offtake.

• ERT expected to generate $850–$950 million in revenue at 10–15% gross margin by 2031, with the overall group targeting $1.5–$1.7 billion in revenue at 18–22% gross margin.

• Vertically integrated operations from mining to finished components enable greater quality control and shortened cycle times for defense applications.

• Supply network includes Blue Moon Metals (Nevada), EQ Resources (Australia), and Barruecopardo Mine (Spain).