Almonty Industries: Production Milestone and a Market Rout Collide
Published on 07/10/2026 at 13:30 | Redaktion boerse-global.de
The launch of processing at Almonty Industries' Sangdong tungsten mine should have been a moment of pure celebration for shareholders. Instead, the stock has been hammered from two directions at once — a vicious sell-off in South Korea's benchmark equity index and lingering anxiety over the dilutive potential of an $800 million convertible note. The shares ended the week at C$21.03, down more than 9%, and nearly 37% off the high reached in April.
What started as a rout in AI-chip stocks quickly spread across the KOSPI, dragging Almonty along for the ride despite having no exposure to that sector. The index plunged 5.35% to 7,246.79 points on Wednesday, officially landing in bear-market territory at more than 20% below its June 22 record of 9,114.55. Heavyweights Samsung Electronics and SK Hynix tumbled 7% and 9%, respectively. Because Almonty's flagship Sangdong operation is located in South Korea, the country-specific selling pressure hit both the company's Australian and Canadian listings indiscriminately.
The second drag on the stock is the financing used to strengthen the balance sheet. Almonty issued an $800 million convertible note late last year, with conversion terms set at $27.40 per share and a maturity date of 2031. The proceeds are earmarked for refinancing existing debt, but the flipside is a feared dilution of existing holdings. That convertible also triggered a non-cash accounting hit in the fiscal year ended December 31, 2025: a net loss of $161.9 million, compared with $16.3 million a year earlier. Roughly $87.3 million of that charge stemmed from revaluing embedded derivatives tied to the note. Paradoxically, the very success of the stock — which surged from C$1.36 at end-2024 to C$12.07 by year-end 2025 — made those derivatives more expensive on paper. Almonty stresses that this has no effect on cash flow or liquidity.
Should investors sell immediately? Or is it worth buying Almonty?
The underlying operational story, however, remains intact. The Sangdong processing mill officially started up on July 1, 2026, initially handling around 139,700 tonnes of stockpiled ore grading roughly 0.25% tungsten trioxide. At current prices the material represents about $68 million in value, enough to keep the mill running for two and a half months while the management team refines the processing flows. After that, the plant will switch to higher-grade ore extracted from underground workings. The biggest shareholder, the Plansee Group, recently reinforced its long-term commitment to off-take from Sangdong — a strong signal from industrial demand against a backdrop of tightening Chinese tungsten supply and rising ammonium paratungstate prices.
Despite the recent weakness, the long-term chart still tells an impressive story: the stock has gained approximately 170% over the past twelve months and trades about 13% above its 200-day moving average. The relative strength index has slipped to 36, suggesting the selling may be overdone from a technical standpoint. Investors are now looking ahead to the next quarterly report, which will for the first time include tangible revenue from the Sangdong mill — a number that could either reinforce the narrative of operational progress or deepen the market's current skepticism.
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