To restore smithy you must have anvil. But to have anvil I must have a skill that I didn't. (Skill training complete)
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You don't need it. You can win battles by using non ultimate skills (and buying better weapon from the weapon shop, which does not require any special resource to fix).
Edit: You can also buy rudimentary armor (butt plugs) from the twink orc trader on the first scenario of Dustridge. And various teas and stews from traders and NPCs.