Almonty's $773 Million Convertible and Russell 1000 Entry Mark a New Chapter in Tungsten's Strategic Revival
Published on 06/15/2026 at 20:14 | Redaktion boerse-global.de
Tungsten producer Almonty Industries has locked in a record $800 million convertible bond issuance just as index compilers FTSE Russell clear it for entry into the Russell 1000, creating a rare alignment of passive demand and fresh growth capital. The convertible, upsized from an initial $700 million target, drew such overwhelming investor appetite that underwriters exercised their greenshoe in full. After fees, Almonty pockets roughly $773 million.
To shield existing shareholders from dilution, the company layered on capped-call transactions that kick in once the stock surpasses $41.36. The cash infusion arrives alongside a dramatic operational turnaround. First-quarter revenue hit $25.4 million, a 221% year-over-year surge fueled by record tungsten prices. Operating cash flow swung to positive $9.7 million, compared with a negative figure a year earlier. Adjusted operating earnings climbed to $6.1 million, though a net loss of $5.3 million persisted due to accounting charges tied to the rising share price.
The price of ammonium paratungstate (APT), a benchmark tungsten product, has more than tripled since January, leaping from $862 to nearly $3,140 per metric ton by May. That rally transforms the economics of Almonty’s Sangdong mine in South Korea, which currently processes 640,000 tonnes of ore annually to produce about 2,300 tonnes of tungsten concentrate. A second expansion phase aims to double capacity by 2027. The company’s Portuguese operations also benefit from the price explosion.
Should investors sell immediately? Or is it worth buying Almonty?
Geopolitical tailwinds reinforce the bull case. New US defence procurement rules set to take effect in 2027 will ban tungsten sourced from China or Russia, forcing buyers to seek alternative supplies. Almonty has repositioned itself squarely in that camp, moving its head office from Toronto to Dillon, Montana. Its Gentung project in Montana could begin production as early as the second half of 2026. To manage the larger balance sheet, the company named Jorge Beristain chief financial officer in early June, bringing experience from Deutsche Bank and metal distributor Ryerson.
The Russell 1000 listing, effective June 29, forces passive funds and exchange-traded funds that track the index family to buy Almonty shares. Inclusion in the broader Russell 3000 automatically elevates the stock into the large-cap Russell 1000, with trillions of dollars in assets benchmarked to the series. Management expects the move to raise visibility among institutional investors. The stock has already more than doubled year-to-date to C$24.89, and over the past twelve months it has surged 428%. The 52-week high of C$33.35 is back in play as the June 29 reconstitution approaches. Almonty will next report second-quarter results on August 17, offering investors the first concrete update on Sangdong’s ramp-up since the convertible closed.
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