Almonty’s $800M Bond Buyback and a Looming Tungsten Vacuum Create a Rare Two-Way Catalyst
Published on 06/22/2026 at 11:02 | Redaktion boerse-global.de
The Toronto-listed miner has pulled off a financial hat trick that would normally spook shareholders—and instead sent its stock to new heights. Almonty Industries placed $800 million in convertible notes due 2031, netting roughly $772.7 million after expenses, yet the shares barely blinked. The secret: an $83 million hedging program that capped the effective conversion price at $41.36, sharply limiting dilution risk. Since the placement, the stock has rallied to C$26.67, up nearly 122% year-to-date and more than 460% from a year ago—though still 20% below its April high of C$33.35.
That stock surge alone would be noteworthy for a critical-minerals developer. But the real story behind Almonty’s momentum is a supply crunch unfolding half a world away. Two of Japan’s largest chemical producers, Kanto Denka and Central Glass, are permanently shutting down production of tungsten hexafluoride effective July 1. Together they control about 25% of global capacity for the gas, an irreplaceable input for advanced semiconductors—chips below 7 nanometers, 3D NAND with over 200 stacked layers, and high-bandwidth memory. Their customers, including Samsung, SK Hynix and TSMC, have been told that inventories will only last through June. No ready substitute exists.
The disruption traces directly to Beijing. In late 2025, China slashed tungsten exports in retaliation for U.S. tariffs. Starting in January 2026, only 15 state-authorized firms could ship the metal abroad, with the government controlling volume, timing and recipients. Japan, despite producing a quarter of the world’s tungsten hexafluoride, depends entirely on Chinese raw material—which has now been cut off. Chipmakers are scrambling to shrink the typical 18-month qualification process for alternative sources, but the only meaningful non-Chinese tungsten mine in operation today is Almonty’s Sangdong project in South Korea.
Should investors sell immediately? Or is it worth buying Almonty?
Almonty is using its newly raised capital to accelerate that mine’s full-scale output. The company also recently paid off roughly $50 million in old debt, and the bulk of the convertible proceeds are earmarked for Sangdong. On the exploration front, Almonty’s parallel molybdenum drilling campaign at the same site is 37% complete, with grades confirming historical averages of 0.26% MoS?. An offtake agreement with SeAH, one of South Korea’s largest industrial groups, locks in a buyer. The company plans a production update during the week of June 22, which could provide the next catalyst.
Financially, Almonty has already turned a corner. First-quarter 2026 revenue tripled to C$25.4 million, operating cash flow swung from negative C$4.4 million to positive C$9.7 million, and cash on hand stood at C$259.9 million at the end of March. The convertible bond, with a 2.25% coupon, adds more than half a billion in net proceeds after the hedge and fees. Meanwhile, a second deadline looms: starting January 2027, the U.S. Department of Defense will be barred from buying Chinese tungsten. America has not commercially mined the metal since 2015. Almonty’s Gentung project in Montana could restart production in the second half of this year, giving the Pentagon a domestic supplier just in time.
The share price now sits 51% above its 200-day moving average, yet the relative strength index is a calm 53—far from overbought territory. Analysts view the secured financing as a key derisking event, shifting focus squarely to execution at Sangdong. If Almonty can deliver the promised ramp-up, the combination of a bond-financed war chest and a global supply vacuum could sustain the rally well beyond its recent highs.
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