Almonty’s Sangdong Inflection Point: Twin Critical-Metal Shortages Fuel Production Push
Published on 06/21/2026 at 21:55 | Redaktion boerse-global.de
Two separate supply crises are converging on Almonty Industries just as its Sangdong complex in South Korea reaches a critical milestone. On July 1, Japan’s Kanto Denka and Central Glass will permanently cease production of tungsten hexafluoride, the gas essential for fabricating advanced semiconductors below 7 nanometers and for high-layer-count 3D NAND memory. The move removes roughly 25% of global capacity from the market, and chipmakers Samsung, SK Hynix and TSMC have secured inventories only through the end of June. Simultaneously, South Korea finds itself in a molybdenum bind: more than 90% of its supply comes from China, and national stockpiles are running thin, prompting the government to issue public calls for private-sector procurement.
Almonty’s Sangdong mine in Gangwon province, officially reopened on March 17 after a three-decade hiatus, is uniquely positioned to address both bottlenecks. The operation is already producing tungsten concentrate at a grade of 0.51% tungsten trioxide — roughly three times the global average. Phase 1, which will reach full capacity this July, processes 640,000 tonnes of ore annually and yields about 2,300 tonnes of concentrate. Phase 2, slated for 2027, is designed to double processing to 1.2 million tonnes and lift tungsten output to around 4,600 tonnes — enough to cover an estimated 40% of non-Chinese world demand.
Right next door, the company is accelerating a molybdenum drilling campaign that has already completed 37% of a 26-hole, 12,000-metre programme. Results have confirmed historical grade levels, and Almonty intends to move straight into production once the resource extent is validated — with a target start by the end of 2026. The project is fully permitted for mining and environmental compliance. An exclusive offtake agreement with SeAH M&S, South Korea’s largest molybdenum processor and the world’s second-largest molybdenum oxide smelter, underwrites the entire output for the mine’s estimated 60-year life. Crucially, the contract includes a floor price of $19.00 per pound before treatment charges, providing revenue visibility even if spot prices fluctuate. The spot price for molybdenum has already climbed 23.5% year-on-year to CNY 592.34 per kilogram.
Should investors sell immediately? Or is it worth buying Almonty?
Almonty calls the integration of tungsten, molybdenum and a planned tungsten oxide plant at Sangdong the “Korean Trinity” — a fully vertical value chain for strategic minerals. On the financial side, the company posted a 221% revenue jump in the first quarter of 2026 to $25.4 million, while operating cash flow swung from negative $4.4 million a year earlier to positive $9.7 million — a clear inflection point. A convertible bond completed on June 9 raised $800 million after exercise of the greenshoe, with net proceeds of roughly $772.7 million after costs. The notes carry a 2.25% coupon and mature in July 2031. About $543 million of the proceeds are earmarked for working capital and potential acquisitions, with the remainder funding Sangdong’s ramp-up.
Almonty also has a second front in the United States. From January 2027, the Pentagon is prohibited from purchasing Chinese tungsten, and America has not commercially mined the metal since 2015. The company has relocated its headquarters from Toronto to Dillon, Montana and is advancing the Gentung project, where production could start in the second half of 2026. To bolster its financial expertise, Almonty appointed Jorge Beristain, a former Deutsche Bank mining analyst, as CFO effective June 1.
A structural catalyst arrives on June 29: Almonty will be added to both the Russell 3000 and Russell 1000 indices, which collectively track roughly $12.2 trillion in assets under management. Analysts estimate the forced rebalancing could generate buying demand of around 13 million shares – three times the average daily trading volume. The stock closed the previous Friday at CAD 26.67, up about 0.6% on the day. Year-to-date the shares have more than doubled, gaining 121.7%, while the twelve-month advance stands at roughly 461%. That still leaves the stock about 20% below its April high of CAD 33.35 — a gap that institutional investors are likely reassessing with the July 1 deadline looming.
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