Nui Phao Mine Secures Blasting Permit for 28 Million Tons, Delivering Fresh Boost to MSR

On May 7, Nui Phao Mining Company Limited, a subsidiary of Masan High-Tech Materials (UpCOM: MSR), announced a series of positive developments that pave the way for the continued extraction of an additional 28 million tons of polymetallic tungsten ore reserves.

The development follows the amendment of Mineral Mining License No. 1710/GP-BTNMT, originally granted in 2010. Under Decision No. 639/QĐ-BNNMT issued by the Ministry of Agriculture and Environment, Nui Phao Mining is now authorized to mobilize 28 million tons of additional ore within its total approved reserve of 83.22 million tons.

This amendment provides the legal foundation for the company to expand mining activities and further strengthen the supply of strategic minerals at a time when global tungsten prices are experiencing a strong upward cycle.

On the same day, the contractor responsible for blasting services at the Nui Phao mine, GAET, was officially granted a new permit to use industrial explosives. The approval allows blasting operations to continue in support of the extraction plan for the newly approved ore reserves.

Since the beginning of 2026, approximately 800 tons of industrial explosives have already been utilized by GAET for mining operations at Nui Phao and are expected to be fully consumed by mid-May 2026. The newly issued permit ensures the continuity of blasting activities for the next phase of mining operations.

Profit Breakthrough Driven by Strong Prices and Operational Efficiency

Masan High-Tech Materials delivered a strong financial performance in the first quarter of 2026, with both revenue and profitability showing significant growth. Net revenue reached VND 2,993 billion, representing a 114.9% year-on-year increase. The growth was primarily driven by the tungsten segment, the company’s core business, which generated VND 2,445 billion in revenue, up 218% compared to the same period last year.

The combination of robust revenue growth, cost optimization initiatives, and improved operational efficiency resulted in EBITDA of VND 1,050 billion, up 154% year-on-year. Net profit after tax reached VND 537 billion, marking the highest quarterly profit since the plant commenced operations.

Operational performance also improved across processing facilities. Tungsten recovery at the Nui Phao plant reached 61.1%, while fluorite recovery rose to 64.3%, reflecting ongoing advancements in processing technology and operational optimization.

Leveraging the Global Tungsten Price Surge

For 2026, Masan High-Tech Materials built its business plan based on an assumed average APT price of USD 1,164–1,246 per mtu. Under this scenario, the company projected consolidated net revenue of VND 16 trillion to VND 20.3 trillion, with net profit after tax before minority interests (NPAT Pre-MI) expected to reach VND 1.7 trillion to VND 2.5 trillion.

However, actual market developments have significantly exceeded these assumptions.

The average APT price in Q1 2026 reached approximately USD 1,865 per mtu and surged to more than USD 3,150 per mtu by the end of the quarter.

According to company management, as long as APT prices remain above USD 1,500 per mtu, MSR will be able to significantly deleverage its balance sheet. The company expects its net debt-to-EBITDA ratio to decline from approximately 3.5x to around 1.7x in 2026, with the potential to achieve a net cash position – where cash exceeds total debt – by the end of 2027. This improvement would not only strengthen MSR’s financial position but also enhance value creation across the broader Masan Group ecosystem, which currently holds more than 95% economic interest in MSR.

MSR’s profitability remains highly sensitive to tungsten price movements. According to management: “For every USD 100 increase above the assumed price of USD 1,164 per mtu, MSR’s revenue could increase by approximately USD 50 million, while net profit could rise by around USD 10 million annually.”

With the current price environment, the company’s target of achieving billion-dollar revenue and multi-trillion-VND profit in 2026 is becoming increasingly attainable.

Potential Re-rating Opportunity in the Capital Market

MSR’s market capitalization may also be approaching a potential valuation re-rating. The company is currently trading at a P/E ratio of approximately 15–17x, significantly lower than many global mining companies operating in the strategic minerals sector.

In comparison, several international peers – such as Almonty Industries, EQ Resources, and Jia Xin Holdings – are trading at P/E multiples ranging from 50x to 100x, despite having smaller revenue bases or not yet achieving profitability.

Global capital markets are increasingly recognizing a structural shift in profitability among companies supplying strategic minerals essential to high-tech and energy transition supply chains. Both domestic and international investors are therefore paying closer attention to MSR shares, anticipating the possibility of a valuation re-rating.

If favorable market conditions continue, MSR expects to reach a net positive cash position by the end of 2027, or at the latest by 2028, unlocking free cash flow and further optimizing profitability. Once financial leverage declines, the company also plans to establish a dividend policy for shareholders, positioning MSR as a value-growth stock supported by stable and sustainable cash flows.

In parallel, MSR is preparing to transfer its listing to the Ho Chi Minh Stock Exchange (HOSE), a move expected to improve transparency, enhance liquidity, and attract institutional investors increasingly focused on companies supplying strategic materials for global technology supply chains.

Source: Vietnam Finance