Almonty Lands $773M Bond and Revives Sangdong, Yet Shareholders Endure 14% Slide and 92% Volatility
Published on 06/26/2026 at 18:24 | Redaktion boerse-global.de
Almonty Industries has closed a heavily oversubscribed convertible note offering that netted $772.7 million, injecting the tungsten-focused miner with a war chest just as its flagship Sangdong project in South Korea begins production. The transaction, which priced on June 9, 2026, attracted strong institutional demand, allowing the company to raise more than the initial $700 million target after expenses.
The fresh capital is earmarked for ramping up Sangdong, which restarted operations in March 2026 after more than three decades of idleness. The first phase of the mine is now processing around 640,000 tonnes of ore annually, with a target of 2,300 tonnes of tungsten concentrate per year. Almonty also plans to use part of the proceeds for working capital and debt refinancing, benefiting from a low 2.25% coupon on the 2031-dated notes.
Management has taken steps to shield existing shareholders from dilution. The conversion price is set at $27.40 per share, a 33% premium over the reference price in early June, and a cap at roughly $41 limits the maximum number of new shares that could be issued. Additionally, the company can settle conversions in cash, further reducing the risk of equity dilution.
Should investors sell immediately? Or is it worth buying Almonty?
On the operational front, Almonty is gaining momentum. First-quarter 2026 revenue surged 221% year-over-year to C$25.4 million, driven by higher ammonium paratungstate prices and steady output from the Panasqueira mine in Portugal. Operating cash flow reached C$9.7 million, a sharp improvement from the prior year. The company also acquired the Gentung tungsten project in Montana and relocated its head office there, with Gentung expected to enter production in the second half of 2026.
Despite these milestones, the stock has struggled in recent weeks. Trading at C$23.38 on the Toronto Stock Exchange, the shares have lost 14.04% over the past 30 days, a pullback that contrasts with a year-to-date gain of 94% and a 12-month advance of 316.54%. The annualized volatility stands at an eye-watering 92.40%, reflecting the market’s uncertainty around a successful ramp-up.
The bear case centers on execution risk. Scaling Sangdong to its full capacity of 4,600 tonnes of concentrate annually — enough to supply roughly 40% of non-Chinese tungsten demand — is fraught with potential delays and cost overruns, typical of large mining projects. Falling tungsten prices could compress margins, while regulatory hurdles in Montana may slow the Gentung timeline. The convertible note, though structured to limit dilution, could still pressure equity if the stock rallies sharply.
Almonty now faces a defining stretch: converting its well-stocked treasury and a restarted mine into reliable, large-scale output. The US Department of Defense, eager for tungsten supplies outside China, is a natural customer, but operational missteps would quickly sour sentiment. The next few months will test whether the company can deliver on its promise to become a cornerstone of the Western tungsten supply chain.
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