Almonty Industries: Russell Inclusion Locks In as Tungsten Prices Surge and Molybdenum Drilling Accelerates
29.06.2026 - 06:52:27 | boerse-global.de
Almonty Industries officially joins the Russell 1000 and Russell 3000 indexes today, a milestone that forces scores of passive funds to add the stock to their portfolios. Yet the miner’s shares, which closed at CAD 23.00 on the Canadian market, sit 31% below the April high of CAD 33.35 and have shed roughly 16% over the past month. That disconnect between structural buying pressure and near-term technical weakness sets the stage for a pivotal few weeks as portfolio rebalancing kicks in.
The core of the company’s value proposition remains the Sangdong mine in South Korea, which after more than three decades of dormancy restarted commercial production in late 2025 and began its first expansion phase in March 2026. The operation now processes about 640,000 tonnes of ore per year, targeting roughly 230,000 MTU of tungsten concentrate. In the first quarter of 2026, the revival already showed in the numbers: revenue soared 221% year-on-year to US$25.4 million, adjusted EBITDA swung from a loss of US$2.4 million to a profit of US$6.1 million, and operating cash flow reached US$9.7 million.
Parallel to the tungsten ramp-up, Almonty is advancing a molybdenum development at the same site. A drilling programme has completed about 37% of its planned 26 holes, totalling approximately 12,000 metres, with grades so far aligning with historical data. South Korea recently declared a molybdenum supply crisis and is urging private companies to build self-sufficiency. Almonty already holds an offtake agreement with SeAH M&S, the country’s largest molybdenum processor and the world’s second-largest molybdenum oxide smelter, for 100% of future production at a minimum price of US$19.00 per pound. The mine holds all necessary permits, first output is targeted for end-2026, and the historically proven mine life exceeds 60 years at an annual capacity of roughly 5,600 tonnes.
Should investors sell immediately? Or is it worth buying Almonty?
The geopolitical tailwind for both metals is powerful. From 1 January 2027, the US Department of Defense is banned from procuring tungsten from China, Russia, Iran or North Korea. China controls an estimated 88% of global tungsten production, and Chinese APT deliveries have already collapsed from 782 tonnes to 243 tonnes year-on-year. North American tungsten prices have climbed from US$19.35 per kilogram in the first quarter of 2025 to US$34.17 in the same period this year — a gain of 76.6%. Investment bank CICC projects that the global supply deficit will exceed 17% of demand between 2026 and 2028. Sangdong, with ore grades around 0.51% tungsten trioxide — roughly three times the global average — could eventually supply up to 40% of non-Chinese tungsten demand once Phase 2, targeting a doubling of capacity to 1.2 million tonnes of ore and 4,600 tonnes of concentrate, comes on line in 2027.
Almonty’s management sees the Russell inclusion as recognition of the operational progress made over the past year, which included relocating its corporate headquarters to the United States. The listing shift may also make the equity more accessible to US-based institutional investors. However, the company’s capital structure adds a layer of complexity. In June it placed US$700 million in convertible notes with a 2.25% coupon and maturity in 2031. The offer was oversubscribed, and the conversion price sits at roughly US$27.40 per share. Almonty has deployed part of the proceeds into capped-call transactions to limit dilution, though the risk is not entirely eliminated.
On the technical front, the stock’s relative strength index stands at 40.9 — not yet in oversold territory but edging close. The annualised 30-day volatility has topped 90%, reflecting unusually choppy trading. Over the past seven sessions the shares have lost around 13%, but the year-to-date advance still exceeds 91%. The near-term question is whether the compelled buying from Russell-tracking ETFs and mutual funds can absorb the selling pressure that has dragged the stock well below its 50-day moving average.
For investors watching the next catalysts, the timeline is crowded. A full resource estimate from the molybdenum drilling programme, trouble-free tungsten production through year-end, and the start of Phase 2 construction in 2027 will each determine whether the index inclusion marks a genuine inflection point or merely a temporary lull in a longer correction.
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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.
