Almonty’s Molybdenum Offtake Guarantee De-Risks Sangdong as Drilling Nears the Halfway Mark
Published on 06/21/2026 at 19:15 | Redaktion boerse-global.de
The South Korean government’s scramble for critical raw materials has found a willing partner in Almonty Industries. With more than 90% of the country’s molybdenum supplies coming from China, Seoul has issued public pleas for domestic companies to secure their own sources. Almonty, already operating the Sangdong tungsten mine, is drilling next door – and has locked in a buyer for every tonne it can produce.
That buyer is SeAH M&S, South Korea’s largest molybdenum processor and the world’s second-largest molybdenum oxide smelter. The exclusive offtake agreement runs for the entire mine life, with a floor price of $19.00 per pound before treatment charges. That guaranteed minimum gives Almonty a predictable revenue base, a rare commodity in the volatile metals market. SeAH M&S also operates the only molybdenum roasting facility in Asia outside China, a strategic choke point that adds further heft to the deal.
Drilling at the Sangdong molybdenum project in Yeongwol County is advancing rapidly. Almonty has completed 37% of a planned 26-hole, 12,000-metre programme, with assay results so far matching historical grades. Once the resource boundaries are confirmed, the company intends to move straight into production. The mine already holds full mining and environmental permits, with first output targeted for late 2026. Based on historical government data, Almonty expects a 60-year mine life and an annual capacity of roughly 5,600 tonnes of molybdenum.
Should investors sell immediately? Or is it worth buying Almonty?
The timing is propitious. The spot price for molybdenum has climbed 23.5% over the past twelve months to 592.34 CNY/kg, reflecting tightening supply and growing demand from aerospace, defence, nuclear energy, and renewable energy – sectors that rely on the metal’s high-temperature and high-pressure performance. Almonty’s shares have ridden that wave: up 121.7% since the start of the year and nearly 461% over the trailing twelve months, closing at C$26.67 on Friday. That still leaves the stock about 20% below its 52-week high of C$33.35, hit in mid-April.
A structural catalyst is due on 29 June, when Almonty joins the Russell 1000 and Russell 3000 indices, which collectively track roughly US$12.2 trillion in assets under management. Analysts estimate the resulting rebalancing could trigger demand for around 13 million shares – roughly three times the average daily trading volume. The company also shored up its finances in early June, placing convertible bonds worth US$800 million, leaving net proceeds of approximately US$772.7 million to fund the expansion.
Almonty calls the broader Sangdong complex the “Korean Trinity”: a fully integrated value chain for tungsten, molybdenum, and a tungsten oxide plant. Phase 1 of tungsten production is on track to reach full capacity in July, processing 640,000 tonnes of ore annually to yield about 2,300 tonnes of tungsten concentrate. Phase 2, targeted for 2027, would double that to 4,600 tonnes – enough to meet nearly 40% of global demand outside China. The combination of a guaranteed molybdenum offtake, index-inclusion buying pressure, and a deep-pocketed balance sheet puts Almonty in a different league from the pure tungsten play it was a year ago.
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