Almonty's Sangdong Milestone and Expanded GTP Pact Fortify Revenue — But Broader Headwinds Pressure the Stock
Published on 07/20/2026 at 22:10 | Redaktion boerse-global.de
Almonty Industries has reached a critical operational inflection point in South Korea, where its Sangdong tungsten mine began processing stockpiled ore in June 2026 and produced its first saleable concentrate. The event coincides with a sweeping renegotiation of the company's offtake agreement with Global Tungsten & Powders, a unit of the Plansee Group, and a voluntary delisting from the Toronto Stock Exchange that will narrow the company's trading venues to the Nasdaq, ASX, and Frankfurt by July 31. The delisting requires no shareholder approval and reflects a reality in which the bulk of Almonty's trading volume already flows through the U.S. exchange under the ticker ALM.
The Sangdong stockpile contains roughly 139,700 tonnes of ore grading 0.25% tungsten trioxide, representing an estimated gross value of about US$68 million at current prices. Phase I capacity will consume that inventory over approximately 2.6 months. The broader market backdrop supports the economics: ammonium paratungstate in Rotterdam now trades above US$3,000 per tonne, buoyed by Chinese export restrictions and rising defense-sector demand. Almonty financed the ramp-up with a convertible note offering in June that generated net proceeds of approximately US$772.7 million.
The most significant revenue structural move came with the GTP contract revamp. The agreement has been extended to 21 years, up by six years, and the volume increased by 40% to 4.41 million metric ton units. The price base rose 6.3%, and the contract now covers roughly 90% of planned Phase I output. Almonty said the improved pricing alone should add at least US$30 million in annual revenue, while the total annual revenue embedded in the contract at current prices stands around US$490 million. CEO Lewis Black emphasized the long-term planning certainty the deal provides. Neither a potential Phase II expansion nor a separate molybdenum project is reflected in those figures.
Should investors sell immediately? Or is it worth buying Almonty?
On the capital markets front, Almonty was added to the Russell 1000 and Russell 3000 indices in late June, and DA Davidson raised its price target by US$8 a share on July 10. Sphene Capital followed on July 20, reaffirming a "Buy" rating and lifting its 36-month target to C$38.90 from C$37.40, implying roughly 102% upside from the C$19.25 close the day before. First-quarter results for 2026 showed a net loss of US$0.02 per share, narrowing sharply from a loss of US$0.13 a year earlier.
Despite the operational and financial milestones, the stock has been under pressure. Shares recently traded at C$19.45, a decline of about 27% from 30 days ago and 42% below the April 52-week high of C$33.35. Even so, the stock remains up roughly 59% year to date. The recent pullback correlates with a semiconductor-led sell-off in Asian markets around July 20 and renewed geopolitical tensions in the Middle East, which weighed on commodity-related names across the board. The company's move to a Nasdaq-only listing is expected to further consolidate liquidity and analyst coverage, but in the near term, the market's focus appears trained on macro risks rather than mine-level progress.
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