Almonty Charges Into the Russell 1000 with Oversubscribed Convertible as Tungsten Supply Squeeze Intensifies
Published on 06/15/2026 at 10:06 | Redaktion boerse-global.de
China’s tightening grip on tungsten exports is creating a strategic window for western producers, and Almonty Industries is moving quickly to capitalise. The critical-minerals company has locked in a major convertible bond — oversubscribed to $772m — and will enter the Russell 1000 later this month, giving its stock a powerful passive-demand tailwind right as operational milestones fall into place.
The convertible, originally sized at $700m, was finalised on 14 June 2026 after strong institutional demand pushed the final haul higher. The notes carry a fixed coupon of 2.25% and run until July 2031. For a company that posted a net loss of C$132.6m in the most recent period, the successful placement is a clear vote of confidence from large investors who see long-term value in Almonty’s mining ambitions.
Investors have already begun pricing in that story. The stock closed at C$24.75 on Friday, adding roughly 8% over the week and pushing the year-to-date gain past 105%. On the day the convertible was priced, the shares jumped 4.08%. Yet by most fundamental measures the rally still has room to run: a DCF analysis pegs fair value at C$56.91 per share, more than double the current level. Analysts are more cautious, with a consensus price target of C$27.37, but even that implies moderate upside.
Should investors sell immediately? Or is it worth buying Almonty?
The convertible proceeds — combined with the imminent Russell inclusion — give Almonty significant financial firepower and a broader investor base. FTSE Russell will add the company to both the Russell 1000 and the broader Russell 3000 at the close on 29 June, forcing index-tracking funds to buy the stock. The index uplift comes at a pivotal moment: China has sharply curtailed tungsten exports, and the metal is essential for defence and high-tech manufacturing. Almonty is positioning itself as the leading western alternative.
Operational momentum is building in parallel. The company recently completed the first phase of its Sangdong mine in South Korea, one of the world’s largest high-grade tungsten deposits, and is advancing projects in Portugal and Spain. To steer this expansion, Almonty has installed a new chief financial officer, Jorge Beristain, who took the helm at the start of June. Shareholders reinforced the strategic shift at the annual meeting, approving all seven board members, with Generals Gustave F. Perna and Alan Estevez each receiving over 99% support.
The task now is to convert the fresh capital into production gains and bring the net loss down. The Sangdong ramp-up will be the key test in coming quarters, and the Russell index entry adds another layer of market visibility as Almonty attempts to close the gap between its current valuation and its DCF potential.
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