American Tungsten (ASX:AT4) Surges 8% to $0.20 After Utah Mill Deal: Is It Still a Buy?

American Tungsten Acquires Utah Processing Mill

American Tungsten and Antimony (ASX: AT4) jumped 8 per cent to close at A$0.20 on Wednesday after the company locked in a deal to acquire the Dutch Mountain Project and Processing Facility in Utah. This is not just another exploration asset. It is the only fully permitted, operationally proven tungsten processing facility in the entire Clifton Mining District. The deal also includes the Fraction Lode Mine. With shares hitting a new 52-week high of A$0.21 yesterday, up more than six times from their early 2025 lows, the big question is whether American Tungsten still offers value at these levels or if the easy gains are behind us.

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Dutch Mountain Gives American Tungsten a Rare Path to Near-Term Production

The strategic value lies in what this acquisition brings to AT4’s existing portfolio. Unlike most critical mineral explorers facing years of permitting and construction before production, AT4 now controls processing infrastructure that is already permitted and operationally proven. This is a rare asset in the US tungsten space, where there has been no meaningful domestic production since 2016.

The Dutch Mountain facility sits in Utah’s Gold Hill Mining District, a region with a long history of tungsten production. Combined with AT4’s flagship Antimony Canyon Project in Utah and the Tennessee Mountain Tungsten Project in Nevada, the company is building a portfolio covering both exploration and processing. This vertical integration potential separates American Tungsten from peers who remain years away from any production pathway.

For investors, this acquisition represents clear de-risking. Processing infrastructure is often the bottleneck delaying critical minerals projects, and American Tungsten has addressed this challenge early.

China’s Export Restrictions Create Urgency for US Tungsten Supply

The timing of this deal is no accident. China controls more than 80 per cent of global tungsten production and processing. That dominance is now a national security problem for the United States.

The REEShore Act of 2022 bans Chinese tungsten from US military equipment starting December 2026. This is not some distant threat. Defence contractors need to secure an alternative supply now. Tungsten is essential for armour-piercing ammunition, aerospace parts, and cutting tools. There is no easy replacement.

American Tungsten also has exposure to antimony, another critical metal facing the same China supply squeeze. Antimony is used in ammunition primers and flame retardants. Owning projects in both metals gives AT4 a stronger story as the US rebuilds domestic supply chains.

The Investor’s Takeaway

The bull case is straightforward. American Tungsten now has processing infrastructure, exposure to two critical defence metals, all assets in the US, and a planned NASDAQ listing targeting Q2 2026. These are real catalysts.

But the risks are just as real. AT4 is still in pre-production and reported losses of around A$17 million in 2025. The share price has already surged from A$0.03 to A$0.20, meaning much of the early upside has been captured. At a market cap of roughly A$250 million for a company with minimal revenue, the valuation assumes a lot goes right from here.

We believe AT4 remains interesting for investors wanting critical mineral exposure before production begins. The Dutch Mountain deal strengthens the case. However, buying at A$0.20 carries more risk than buying at A$0.05. The company must deliver on integration and show progress towards production to justify today’s premium. Watch for NASDAQ updates and production timelines.