Almonty Gains Russell Entry as Molybdenum Drilling Adds a Second Metal Stream at Sangdong
Published on 06/21/2026 at 07:24 | Redaktion boerse-global.de
A Canadian tungsten producer with a flagship mine in South Korea is about to cross into the world of passive institutional investing. Almonty Industries will join the Russell 1000 and Russell 3000 indexes on June 29, forcing index-tracking funds to snap up its shares just as the company accelerates a molybdenum drilling campaign next to its Sangdong tungsten operation. The twin catalysts have already sent the stock up 121% year-to-date to CAD 26.67, though the 12-month gain stands at a staggering 461%.
The molybdenum drilling programme—26 boreholes totalling roughly 12,000 metres, of which 37% are now complete—sits directly adjacent to the Sangdong mine in Gangwon Province. South Korea’s government has publicly urged companies to secure supplies of the metal, which is used in aerospace, defence, nuclear power, petrochemicals, and a growing list of semiconductor and renewable-energy applications. The spot molybdenum price has risen 23.5% over the past year. Almonty has said it will start mining the deposit as soon as the resource is fully confirmed, with no intention to delay.
To fund the broader Sangdong expansion, Almonty raised net proceeds of roughly US$772 million through a convertible bond offering that was heavily oversubscribed. The notes mature in 2031, carry a 2.25% annual coupon, and come with a conversion price of US$27.40—a healthy premium to the current stock price. Management plans to use the capital to double output from the tungsten side of Sangdong from 2027. That timeline dovetails neatly with a US Defence Department ban on purchases of Chinese tungsten, set to take effect in January 2027.
Should investors sell immediately? Or is it worth buying Almonty?
The company has also strengthened its governance with an eye on the US market. Two retired US generals were recently elected to the board with nearly 100% shareholder approval. Jorge Beristain, a former executive at a multibillion-dollar US metals trader, has joined as chief financial officer to steer the growth phase. Operationally, revenue jumped 221% to CAD 25.4 million in the first quarter, and operating cash flow turned decisively positive.
The Russell inclusion will require index funds to purchase Almonty shares from the start of next week, a period that typically sees a spike in volume as managers position themselves ahead of the effective date. Yet investors should brace for the stock’s annualised 30-day volatility of nearly 99%—a figure that underscores how sharp the swings can be. The RSI currently sits at 53, well short of overbought territory. With the molybdenum drilling programme expected to complete in the coming weeks, the next major catalyst will be the resource estimate that determines how fast Almonty can bring a second critical metal into production.
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