Almonty’s $800M Convertible Bond Finances a Two-Front Critical Minerals Strategy at Sangdong
20.06.2026 - 11:43:33 | boerse-global.de
The Sangdong mining complex in South Korea is quietly transforming from a single-metal tungsten project into a hub for two of the most geopolitically charged commodities. Almonty Industries, the company behind it, has long been known as a tungsten developer. But an aggressive drilling campaign on an adjacent molybdenum deposit, backed by one of the largest convertible bond deals in the critical minerals space, is redrawing that picture.
The company raised a total of $800 million through convertible notes issued in early June. The bonds carry a 2.25% coupon and mature in 2031. Underwriters exercised their overallotment option in full, adding $100 million to the original $700 million tranche. After fees and expenses, Almonty walked away with net proceeds of approximately $772.7 million. Some $543 million of that sum is earmarked for working capital and general corporate purposes, including potential acquisitions. The remainder will fund the phased ramp-up of the Sangdong tungsten mine.
On the molybdenum front, Almonty is pushing ahead with a 26-hole drilling program totaling roughly 12,000 metres at the project directly adjacent to its flagship tungsten mine. About 37% of the holes have been completed so far, and assay results are matching historic grades. The company intends to move straight into production once the resource is confirmed. Molybdenum’s role in aerospace, defence, nuclear energy, petrochemicals and the semiconductor and solar sectors has led South Korea’s government to classify the metal as a critical supply risk. The country imports the vast majority of its needs, and officials have been leaning on domestic producers to secure local sources.
That demand dynamic mirrors the one already driving Almonty’s tungsten business.China controls more than 80% of global tungsten output, and in February 2025 it introduced export licences that have systematically squeezed supply. The bottleneck is being felt across the semiconductor industry and in defence supply chains — tungsten is essential in armour, ammunition and electronics manufacturing. Washington has responded with a non-negotiable directive: from 2027, all defence-related tungsten purchases must come from non-Chinese sources. Sangdong is positioned to deliver.
Should investors sell immediately? Or is it worth buying Almonty?
The mine itself is one of the world’s richest known tungsten deposits, with an average ore grade of roughly 0.51% tungsten trioxide — about three times the global average. Phase 1 is designed to process 640,000 tonnes of ore annually. Phase 2, targeted for 2027, will double capacity to 1.2 million tonnes and push concentrate production to around 4,600 tonnes per year. At full tilt, Sangdong could supply roughly 40% of the world’s tungsten demand outside China. The estimated mine life exceeds 45 years.
Almonty’s stock closed the week at C$26.67, up 7.76% in seven days and roughly 122% year to date. The shares remain about 20% below their 52-week high of C$33.35 reached in April. The 50-day moving average sits at C$27.21, slightly above the current price. The relative strength index of 53 points to neutral momentum. Annualised 30-day volatility of nearly 99% underscores the stock’s sensitivity to sector news.
A structural demand catalyst is building on the shareholder front. Almonty is set to join the Russell 1000 index at the end of June. Passive funds tracking the index will be forced to hold the stock regardless of their conviction on the tungsten thesis. That will bring in a new class of investors who never actively bet on this story.
Almonty at a turning point? This analysis reveals what investors need to know now.
The market’s next major inflection point will likely come when Almonty releases a full resource estimate for the Sangdong molybdenum project. Once the drilling programme wraps up and a credible resource figure is in hand, the company is expected to present concrete production plans — a milestone not yet priced into the shares. The convertible bond provides the financial runway. The broader question is whether operational execution — the mine ramp, the Phase 2 timeline, the molybdenum resource definition — can keep pace with a valuation that has already run far ahead of current earnings. That answer will come into focus in the second half of 2026.
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