Almonty Industries: A $700M Convertible Paves the Way for a Dual-Metal Mine as Russell Inclusion Locks In
Veröffentlicht: 29.06.2026 um 11:22 Uhr, Redaktion boerse-global.de
The timing could hardly be more layered. Almonty Industries formally joined the Russell 1000 and Russell 3000 today, but the stock is nursing a 14% weekly loss at CAD 23.00 — a full 31% off its April high. For a company with 91% year-to-date gains still on the board, the pullback is less a reversal than a reset before the next leg of a story that revolves around two metals and one Korean mine.
At the centre of the action, the Sangdong complex is no longer a single-asset play. A 26-borehole drilling program, now 37% complete with roughly 12,000 metres of planned drilling, is targeting molybdenum as a second revenue stream. South Korea has declared a national supply crisis for the metal, and Almonty has already locked in an offtake agreement with SeAH M&S — the country's largest molybdenum processor and the world's second-biggest moly-oxide smelter. The deal guarantees a minimum price of $19.00 per pound for 100% of future production, with first output slated for the end of 2026 and a historically documented mine life of 60 years at an annual capacity of 5,600 tonnes. Spot molybdenum prices gained roughly 24% over the past year, underlining the strategic timing.
Tungsten, of course, remains the core business. Sangdong was restarted in March 2026 after a hiatus of more than three decades, and the Phase 1 ramp is now handling 640,000 tonnes of ore per year, yielding around 2,300 tonnes of tungsten concentrate. The economics are already visible: first-quarter 2026 revenue surged 221% to $25.4 million, adjusted EBITDA swung from a loss of $2.4 million to a profit of $6.1 million, and operating cash flow reached $9.7 million. Phase 2, planned for 2027, would more than double throughput to 1.2 million tonnes and push annual concentrate output to roughly 4,600 tonnes — enough to satisfy about 40% of tungsten demand outside China.
Should investors sell immediately? Or is it worth buying Almonty?
That demand picture is tightening fast. From 1 January 2027, the US Department of Defense is barred from sourcing tungsten from China, Russia, Iran or North Korea. China controls roughly 88% of global production, and its APT shipments have already collapsed from 782 tonnes to 243 tonnes year on year. North American tungsten prices responded by climbing from $19.35 per kilogram in the first quarter of 2025 to $34.17 in the first quarter of 2026 — a 76.6% leap. Investment bank CICC estimates the global supply gap will exceed 17% of demand between 2026 and 2028. Sangdong’s ore grade of 0.51% tungsten trioxide, roughly triple the global average, positions it to capture that shortfall.
To finance the expansion, Almonty closed an oversubscribed private placement of convertible notes in June 2026, raising $700 million with a 2.25% coupon and a maturity date of 2031. After the exercise of buyer options, net proceeds are expected to reach roughly $772.7 million. The company is channelling about $543 million toward working capital and the Sangdong ramp, while $50 million has gone to refinancing existing debt. The conversion price sits at $27.40 per share — a premium of nearly 19% to the current CAD 23.00 level. Capped-call transactions have been put in place to limit dilution, though the risk cannot be eliminated entirely.
Technical indicators suggest the stock is in a no-man's-land. At CAD 23.00, it is trading 14% below its 50-day moving average of CAD 26.78 but well above the 200-day line at CAD 18.04. The relative strength index sits at 40.9 — close to oversold territory but not quite there. Analyst price targets range from CAD 23.00 to CAD 25.80, with Oppenheimer recently lifting its target to CAD 25.00. The next concrete catalyst is likely to be the completion of the molybdenum drilling program and a formal resource estimate, which could reignite the debate over fair value.
For now, the Russell inclusion ensures structural buying from index funds and ETFs tracking the benchmarks. Whether that demand translates into sustained price momentum depends on two things: a glitch-free tungstite ramp through year-end and a moly resource that confirms historical grades. Both are in play.
Ad
Almonty Stock: New Analysis - 29 June
Fresh Almonty information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
