Almonty’s Molybdenum Drilling Hits Target as $772.7M Convertible Note Backs South Korea’s Critical Metal Strategy
20.06.2026 - 06:05:13 | boerse-global.de
South Korea’s push to secure its own supply of critical industrial metals has placed Almonty Industries in an unusual and powerful position. The company, best known as a tungsten specialist, is now advancing a molybdenum project at Sangdong that the Korean government has already flagged as strategically vital. With a freshly completed $800 million convertible note financing and drill results that match historical highs, the market is pricing in a production story that has yet to fully materialise.
Drilling on the molybdenum target, which sits adjacent to Almonty’s Sangdong tungsten mine, is progressing at pace. Of the 26 planned boreholes totalling approximately 12,000 metres, around 37% have been completed. The analytical data so far confirm that the molybdenum grades align with historic drilling records, strengthening the geological case for a commercial operation. Almonty already has an offtake agreement in place with SeAH, one of South Korea’s largest industrial conglomerates, giving the project a ready buyer and reducing development-stage commercial risk.
Molybdenum’s appeal extends well beyond steel alloys. The metal is essential in aerospace, defence, nuclear energy, petrochemicals, and — increasingly — the semiconductor and solar sectors. South Korea imports the vast majority of its consumption, and the government has been actively encouraging private companies to develop domestic sources. Almonty’s plan is to move directly into production once the resource is confirmed, providing a China-free supply line for Western customers as well.
Should investors sell immediately? Or is it worth buying Almonty?
The financial firepower to execute that plan arrived in early June, when Almonty closed an oversubscribed private placement of convertible notes. The issuance totalled $800 million, carrying a 2.25% coupon and maturing in 2031. Including the full exercise of an over-allotment option, net proceeds came to roughly $772.7 million. Around $543 million of that is earmarked for working capital and general corporate purposes — including potential acquisitions — while the remainder will support the Sangdong tungsten mine, which is being positioned as the largest tungsten source outside China.
The stock market has responded enthusiastically but not without caution. Almonty shares closed last Friday at CAD 26.54, marking a year-to-date advance of more than 120% and a 12-month gain of roughly 458%. That puts the stock about 20% below its all-time high of CAD 33.35 reached in mid-April. The 200-day moving average of CAD 17.59 sits well below current levels, and the relative strength index at around 53 indicates neutral momentum — neither overbought nor oversold. Annualised volatility hovers near 99%, reflecting the stock’s acute sensitivity to news from the critical minerals space.
Investors weighing the upside must also contend with Almonty’s history of funding development through equity raisings, which has led to persistent net losses during the construction and exploration phases and dilution for existing shareholders. Market estimates for the stock’s fair value vary widely, from a conservative CAD 0.67 on the bearish side to CAD 57.44 among the most optimistic participants. The current price trajectory suggests the market is betting on the bull case — that Sangdong molybdenum will successfully transition from exploration to production.
The next major catalyst is the delivery of a complete resource estimate for the molybdenum project. Once the 12,000-metre drill programme is finished and a credible resource is defined, Almonty is expected to announce concrete production plans. That event has not yet been priced into the stock, leaving room for further upside if the numbers confirm the potential that the drilling data already hint at.
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