Almonty’s $773M War Chest Opens a New Front in the Western Tungsten Race
12.06.2026 - 08:31:24 | boerse-global.de
Almonty Industries has sealed its place as a pivotal player in the global tungsten supply chain. The Canadian miner closed an oversubscribed convertible note offering on June 10 that raised a gross $800 million, with net proceeds of approximately $772.7 million after fees and expenses. The original $700 million deal was expanded after the initial purchasers fully exercised their greenshoe option, a clear signal of institutional conviction.
A Financial Engine Built for Scale
The notes carry a 2.25% coupon and mature in July 2031. From the net proceeds, roughly $83 million is earmarked for capped-call transactions designed to limit dilution for existing shareholders when the bonds are eventually converted. Another $50 million will refinance existing debt, while the bulk of the capital is destined for the Sangdong mine in South Korea. That operation, which began commercial production in March 2026, is Almonty’s primary growth driver and is being positioned as the largest tungsten source outside China.
The company’s latest quarterly results underscore the momentum. Revenue hit CAD 25.4 million in the first quarter, a 221% jump from the same period last year. Operating cash flow turned positive at CAD 9.7 million. The net profit margin remains slightly negative at minus 2.65%, but that is hardly alarming during a ramp-up phase.
Should investors sell immediately? Or is it worth buying Almonty?
Stock Responds, But Headwinds Remain
The market gave a thumbs-up on Thursday as shares climbed 9.25% to CAD 23.26. That bounce, however, comes after a steep 23% slide over the past 30 days and leaves the stock roughly 30% below its April high of CAD 33.35. On a twelve-month view, the picture is radically different: the stock has surged nearly 400% from a 52-week low under CAD 5. The relative strength index stands at 43.1, suggesting the selling pressure has eased enough to give the shares technical room to advance.
A potential catalyst sits on the calendar for June 29, when Almonty is slated to join the Russell 1000 and Russell 3000 indices. Inclusion typically triggers passive buying from funds that track the benchmarks, providing a fresh wave of institutional demand. The next quarterly earnings report is due August 17, 2026.
Geopolitics and the Tungsten Factor
What makes Almonty’s story resonate beyond the balance sheet is the geopolitical dimension. Tungsten is a critical mineral for defense and high-performance manufacturing. China dominates global production and recently imposed export restrictions, while the U.S. has banned Chinese tungsten from its defense supply chain. Almonty, with projects in South Korea, Portugal, Spain, and the U.S., is positioning itself as the reliable Western alternative.
At the annual meeting on June 9, shareholders re-elected seven directors and reappointed Zeifmans LLP as auditor, locking in the governance team for the next growth phase. The ramp-up timetable for Sangdong to reach full capacity will be the key metric investors watch. Whether the recent pullback becomes a consolidation pattern or something more lasting depends entirely on how quickly the mine’s output scales.
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Almonty Stock: New Analysis - 12 June
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