Almonty Industries: A Korean Molybdenum Project, a $800 Million Bond, and a Russell Debut Converge
28.06.2026 - 13:43:10 | boerse-global.de
Almonty Industries is advancing its second Korean pillar even as its stock suffers a 14% weekly slide. The company reported that 37% of the planned 26 drill holes at the Sangdong molybdenum project in South Korea have been completed, with mineralisation grades consistent with historical data. That progress comes as Seoul has officially declared a national molybdenum supply crisis, giving Almonty potential pricing power if the project delivers. The deposit sits adjacent to the Sangdong tungsten mine, which wrapped up Phase 1 in March 2026 and is now processing 640,000 tonnes of ore annually for 2,300 tonnes of tungsten concentrate. Phase 2, targeted for 2027, would double throughput to 1.2 million tonnes and lift tungsten output to around 4,600 tonnes.
First-quarter results underscore how far the company has come since its development-stage days. Revenue surged 221% to CAD 25.4 million, adjusted EBITDA swung from negative CAD 2.4 million to positive CAD 6.1 million, and operating cash flow turned positive at CAD 9.7 million. The net loss of CAD 5.3 million was almost entirely due to non-cash valuation effects. Cash on hand as of March 31 stood at CAD 259.9 million, backed by working capital of CAD 169.5 million — and that was before the latest debt financing.
That financing arrived on June 9, when Almonty closed an oversubscribed USD 800 million convertible bond. Net proceeds came to roughly USD 772.7 million. The notes carry a 2.25% semi-annual coupon and are convertible at around USD 27.40 per share, a 32.5% premium to the June 4 closing price. Around USD 83 million was used for capped-call transactions with a USD 41.36 cap to limit dilution on conversion. The remainder is earmarked for refinancing approximately USD 50 million in existing liabilities, plus working capital and potential acquisitions.
Should investors sell immediately? Or is it worth buying Almonty?
The convertible was not the only structural catalyst in play. Starting Monday, June 29, Almonty becomes a member of both the Russell 1000 and Russell 3000 indices. That is no mere honour; index-tracking funds must now hold the stock regardless of sentiment or price level. The forced buying is expected to boost trading volume and broaden institutional ownership over time, though the pre-inclusion ramp-up in activity may now subside.
Across the Pacific, Almonty’s Montana-based Gentung project represents the first potential commercial tungsten mine in the United States in decades. It holds a NI 43-101 resource of 7.53 million tonnes grading 0.315% tungsten trioxide, with planned annual output of around 140,000 metric tonne units. Production is officially slated to start in July. A 15-year offtake agreement with the U.S. defense industry provides a guaranteed buyer at a time when Washington is aggressively rebuilding domestic supply chains for critical minerals.
Despite all this, the stock closed Friday at CAD 23.00, 31% below the April high of CAD 33.35 and 14% lower than a week ago. On a 12-month basis the shares are still up 91%, reflecting the transition from developer to producer. Technically, the price sits below both the 50-day moving average of CAD 26.78 and the 100-day average of CAD 25.05, while the relative strength index of 40.9 points to weak but not oversold conditions. Annualized 30-day volatility runs at 90.91%, making double-digit weekly moves a regular feature.
The tungsten market that underpins Almonty’s strategy is structurally tight but showing short-term cracks. Chinese export controls introduced in early 2025 have driven global prices up more than 550%, and European APT prices climbed from roughly USD 1,800 to over USD 3,100 per metric tonne unit between mid-February and late March 2026. Yet recent data from China points to weakening demand and sluggish destocking, with APT prices suffering a sharp single-day drop in May. New supply from Australia, Canada and Portugal is unlikely before 2027, and substitution remains difficult for most industrial users. Almonty’s long-term vision — the “Korean Trinity” of tungsten production, refining and molybdenum mining under one roof — still hinges on the successful delivery of Phase 2, a tungsten oxide plant, and the molybdenum project. As with all major mining expansions, budgets and timelines carry execution risk, and any sustained fall in tungsten prices would quickly squeeze margins, even if the structural supply deficit argues otherwise.
Ad
Almonty Stock: New Analysis - 28 June
Fresh Almonty information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
