Almonty's Revenue Surges 221% as Sangdong Mine Ramps; $773M Convertible Note and Russell Inclusion Add Momentum
14.06.2026 - 14:04:57 | boerse-global.de
Almonty Industries' first-quarter results underscore its transition from a tungsten developer to a producer. Revenue jumped 221% to $25.4 million, operating cash flow swung from negative $4.4 million to positive $9.7 million, and the net loss narrowed sharply to $5.3 million from $34.6 million in the prior-year period. The milestone comes just as the company banks a heavily oversubscribed convertible note and prepares for index inclusion later this month.
The operational engine is the Sangdong mine in South Korea. Phase 1 is already processing around 640,000 tonnes of ore annually, yielding roughly 2,300 tonnes of tungsten concentrate. A Phase 2 expansion slated for 2027 aims to double throughput to 1.2 million tonnes and lift concentrate output to about 4,600 tonnes. The timing aligns with the Pentagon's mandate that from January 2027, tungsten used in defence components must come from non-Chinese sources — a rule that positions Sangdong as one of the few Western alternatives. Market conditions are also supportive: European APT prices have climbed from roughly $1,650–1,900 per metric tonne unit in mid-February to over $3,100 recently, more than quintupling since China imposed export controls in early 2025.
To fund the expansion, Almonty closed a $700 million convertible senior note offering on June 9, backed by full exercise of the greenshoe overallotment option that added another $100 million. Net proceeds settled at about $772.7 million after expenses and commissions. Demand outstripped the original size by a wide margin, with management and the underwriting syndicate describing the book as significantly oversubscribed. The notes carry a 2.25% coupon, payable semiannually, and mature in July 2031.
Around $83 million of the proceeds have been deployed into capped call transactions. The cap price is set at $41.36 per share — a 100% premium to the stock's June 4 close — limiting potential dilution for existing holders. The remainder is earmarked for working capital, general corporate purposes, and possible acquisitions.
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The convertible closing coincided with the annual general meeting on the same day. Shareholders voted through all seven board nominees with over 99% approval, including CEO Lewis Black and two retired U.S. generals with defence and political experience. The auditor Zeifmans LLP was also ratified with a similarly strong margin. The resounding support reflects Almonty's strategy of deepening its ties to U.S. capital markets.
New financial leadership is already in place. Jorge Beristain took over as chief financial officer on June 1, arriving from Ryerson Holding Corp, a metals services firm with roughly $5 billion in revenue, where he served as vice president of finance. His resume also includes a stint as CFO at Central Steel & Wire Co. and a prior role as managing director and head of Americas metals and mining equity research at Deutsche Bank Securities.
The next visible catalyst arrives on June 29, when Almonty joins the Russell 1000 and Russell 3000 indices. The inclusion triggers automatic buying by exchange-traded funds and index funds that track these benchmarks. Market observers expect structural demand in the tens of millions of dollars, providing a potential counterweight to any selling pressure that typically accompanies a large convertible issue.
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Price action reflects the stock's volatile path this year. Shares closed Friday at C$24.75, up more than 4% on the day and 9% for the week. Year?to?date the stock has more than doubled; over the trailing twelve months it has gained roughly 429%. That still leaves it 26% below the April high of C$33.35, and about 8% under its 50?day moving average.
Analyst price targets paint a mixed picture. Cantor Fitzgerald sees fair value at $25.80 per share, DA Davidson at $25, while Bank of America is more cautious with a $23 target. The coming weeks will test whether the index-driven inflows can offset any overhang from the convertible structure — and how quickly Sangdong's ramp-up translates into sustained profitability.
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