Almonty's $800M Convertible Brings Cash and Complexity: Capped Calls, Sangdong Ramp, and a Share Price in Flux
Veröffentlicht: 12.06.2026 um 04:53 Uhr, Redaktion boerse-global.de
Almonty Industries pulled off the largest financing in its history this week, netting US$772.7 million after fees from a $800 million convertible note offering. The deal closed on June 9, with underwriters fully exercising their overallotment option on what was initially a $700 million placement. Investors initially balked — the stock has fallen 23% over the past 30 trading days and 13% over the past calendar month. Yet by Thursday, the shares bounced 9.25% to CAD 23.26, suggesting that fears of dilution are giving way to optimism about the cash injection.
The notes carry a 2.25% coupon and mature in July 2031. To cushion existing shareholders from dilution when the bonds are converted, Almonty deployed about $83 million into capped-call transactions. These derivative contracts set a ceiling price of $41.36 per share — a 100% premium over the reference price in early June. Another $50 million of the proceeds will refinance existing debt, and the remainder is earmarked for growth.
That growth is already visible in the operating numbers. Almonty’s Sangdong mine in South Korea entered commercial production in March 2026, and the first quarter results reflect the ramp: revenue surged 221% to CAD 25.4 million. Operating cash flow turned positive at CAD 9.7 million, while the net loss narrowed to CAD 5.3 million. The company is still running at a negative profit margin of 2.65%, a typical cost during the initial stages of a major mining ramp-up.
Should investors sell immediately? Or is it worth buying Almonty?
The timing of the financing is strategic. Since China began requiring export licenses for strategic minerals last year, tungsten prices have roughly quintupled. From January 2027, the U.S. Department of Defense will ban Chinese tungsten from American defence supply chains. Almonty, as one of the few non-Chinese tungsten producers, stands to benefit directly. Shareholders clearly support the strategy — at the annual meeting, over 99% of votes backed management, and the board has been beefed up with Pentagon expertise.
A second catalyst arrives on June 29, when Almonty is added to the Russell 1000 and Russell 3000 indices. Because trillions of dollars in assets track these benchmarks, index funds will be forced to buy the stock proportionally. That structural demand should provide a floor under the share price.
Performance across different time frames tells a story of volatility. On a one-year view, the stock has soared 397% from its 52-week low below CAD 5. However, year-to-date the gain is a more modest 93%. With an RSI of 43.1, the shares are technically neither overbought nor oversold. The next earnings report is due August 17, 2026, when investors will see whether the Sangdong ramp and the US$773 million war chest are translating into sustained momentum.
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