Almonty's Western Tungsten Push: $800M Convertible Closes, Sangdong Mine Ramps, and Headquarters Moves to Montana
12.06.2026 - 03:13:36 | boerse-global.de
Almonty Industries is rewriting its corporate DNA. The tungsten producer has closed an $800 million convertible note offering, launched commercial production at its Sangdong mine in South Korea, and transplanted its headquarters from Canada to Dillon, Montana — all within a span of months. The market has taken notice: shares on the Toronto Stock Exchange climbed 9.25% to C$23.26 on the Thursday following the convertible's completion, while Frankfurt-listed shares surged more than 11%.
The convertible issuance, finalized on June 9, originally carried a $700 million size but swelled to $800 million after underwriters fully exercised their greenshoe option. The notes bear a 2.25% coupon and mature in July 2031. After fees and expenses, net proceeds land at roughly $772.7 million. The company has earmarked about $83 million for capped-call transactions designed to limit dilution for existing shareholders when the notes convert, and another $50 million to refinance existing debt.
The fresh capital arrives as Almonty transitions from developer to producer. The Sangdong mine in South Korea — one of the few major tungsten sources outside China — began commercial operations in March 2026. That shift already shows up in the numbers: first-quarter revenue hit C$25.4 million, a 221% surge year over year. Operating cash flow came in at a healthy C$9.7 million, and adjusted EBITDA reached C$6.1 million. The bottom line still shows a net loss of C$5.3 million, but that largely reflects a C$8.4 million non-cash revaluation charge on derivatives and warrants triggered by the share-price rally during the quarter.
Should investors sell immediately? Or is it worth buying Almonty?
Cash on hand stood at around C$260 million before the convertible closed. Adding the net proceeds — plus the roughly C$1.07 billion equivalent at current exchange rates — Almonty's balance sheet now carries substantial firepower. The company also moved its corporate domicile to Dillon, Montana, positioning itself closer to U.S. defense and industrial customers as well as its Gentung tungsten project.
The broader tungsten market provides a supportive backdrop. Supply remains tight: China, the dominant producer, has become a net importer itself, and little new capacity is coming online. Ammonium paratungstate, a key intermediate product, is expected to remain expensive through 2030, driven by demand from semiconductor makers and the defense industry. Oppenheimer analysts cite rising tungsten prices as a primary catalyst for Almonty's shares.
The stock has climbed roughly 94% year to date on the Toronto exchange, but the ride hasn't been smooth. From a 52-week high of C$33.35 reached in mid-April, the shares have pulled back about 23% over the past 30 days — leaving them some 30% below that peak. A separate measure puts the monthly decline at a more modest 13%, illustrating the volatility. The relative strength index sits at 43.1, suggesting the stock is neither overbought nor oversold.
A near-term catalyst could come on June 29, when Almonty is expected to join the Russell 1000 and Russell 3000 indices — a milestone that often triggers buying from institutional funds that track those benchmarks. The company next reports quarterly earnings on August 17, 2026, giving investors an early look at whether the Sangdong ramp-up is delivering on its promise. For now, Almonty has the capital, the mine, and a strategic location to press its case as a Western tungsten champion.
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