Russell Entry, Japan’s Tungsten Warning, and a $800M Hedge Align for Almonty
Published on 06/22/2026 at 13:50 | Redaktion boerse-global.de
The tungsten supply chain is cracking just as Almonty Industries enters the most visible phase of its turnaround. Two of Japan’s largest chemical groups -- Showa Denko Kanto and Central Glass -- have warned Samsung, SK Hynix and DB HiTek that their stocks of tungsten hexafluoride, a gas essential for 3- to 7-nanometer chip production, could run critically low by July 2026. The shortage traces back to Beijing’s decision in late 2025 to throttle tungsten exports in retaliation for US tariffs; since January, only 15 authorised companies can ship the metal abroad, giving the Chinese state full control over volumes, timing and buyers. Meanwhile, from January 2027 the US Department of Defense will be barred from purchasing Chinese tungsten -- a metal the US has not mined commercially since 2015.
Against this backdrop, Almonty is accelerating its own production plans. The company’s flagship Sangdong mine in South Korea, idled for more than three decades, restarted operations in December 2025 and commissioned its processing plant in March 2026. The deposit ranks among the world’s richest, with average ore grades of roughly 0.51% tungsten trioxide -- about three times the global average. Phase 1 is already processing 640,000 tonnes of ore per year; Phase 2, slated for 2027, will double capacity to 1.2 million tonnes and push concentrate output to around 4,600 tonnes annually. At full tilt, Sangdong could supply roughly 40% of the world’s tungsten demand outside China. A second project, Gentung in Montana, could begin production as early as the second half of 2026.
The operational momentum is already showing up in the numbers. First-quarter 2026 revenue tripled to C$25.4 million, operating cash flow swung from negative C$4.4 million to positive C$9.7 million, adjusted EBITDA flipped from a loss of C$2.4 million to a gain of C$6.1 million, and the net loss narrowed from C$34.6 million to C$5.3 million.
To fund the expansion, Almonty placed convertible bonds worth US$800 million in early June. The notes carry a 2.25% coupon and mature in 2031; underwriters fully exercised their greenshoe option, pushing the initial US$700 million tranche to US$800 million. After costs, net proceeds landed at roughly US$772.7 million. The company then deployed US$83 million of that sum into hedging arrangements that cap the effective conversion price at US$41.36 per share, sharply limiting dilution risk. About US$543 million is earmarked for working capital and general corporate purposes, including potential acquisitions, with the remainder backing Sangdong’s build-out. An additional US$50 million is being used to retire older debt.
Should investors sell immediately? Or is it worth buying Almonty?
Shareholders have responded well. The stock closed Friday at C$26.54, representing a gain of more than 120% year-to-date and roughly 458% over the past twelve months. That still leaves it about 20% below the all-time high of C$33.35 reached in mid-April. The relative strength index stands at a comfortable 53, suggesting no overbought conditions, and the share price trades more than 51% above its 200-day moving average.
A structural catalyst arrives on 29 June when Almonty joins the Russell 1000 and Russell 3000 indices. FTSE Russell included the company on its preliminary list on 22 May, based on market capitalisation as of 30 April. Once the index membership becomes effective, all funds and ETFs tracking those benchmarks must hold the stock. Historically, inclusion drives a notable increase in trading volume in the weeks before the effective date as managers position early, followed by broader analyst coverage, a larger institutional shareholder base and improved liquidity.
The company is also hedging its bets with a second metal. A parallel drilling campaign on a molybdenum deposit directly adjacent to Sangdong is underway, with 26 planned holes totalling approximately 12,000 metres. About 37% of the drilling is complete, and assay results so far confirm grades consistent with historical data. Almonty already has a binding offtake agreement with SeAH, one of South Korea’s largest industrial conglomerates, which significantly de-risks the project’s commercial side.
Almonty at a turning point? This analysis reveals what investors need to know now.
With forced index buying about to begin, a structural tungsten deficit tightening, and a carefully hedged balance sheet, Almonty enters the second half of 2026 carrying a combination of catalysts that few junior miners can match. The next few weeks will test whether the remaining gap to the all-time high is closed by institutional positioning before the 29 June deadline.
Ad
Almonty Stock: New Analysis - 22 June
Fresh Almonty information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
