Almonty’s Molybdenum Drilling Nears 40% as South Korea’s Supply Squeeze Drives a Dual-Resource Pivot
20.06.2026 - 10:14:39 | boerse-global.de
Almonty Industries is pushing hard into uncharted territory. The tungsten specialist has drilled roughly 37% of a 26-hole, 12,000-metre molybdenum program at its Sangdong project in South Korea, with early assays confirming historical grades. The move comes as Seoul classifies molybdenum shortages as critical, urging private companies to secure domestic sources of the metal used in aerospace, defence, nuclear energy, semiconductor fabrication and solar manufacturing.
The drilling campaign, located adjacent to Almonty’s flagship Sangdong tungsten mine, aims to define a resource that can be rapidly moved into production. While the company’s core business remains tungsten — it is building what could become the largest non-Chinese tungsten source — the molybdenum push adds a complementary revenue stream at a time when spot prices have surged roughly 23.5% year-over-year. An existing exclusive offtake agreement with SeAH M&S, a subsidiary of the SeAH Group, already locks in buyers for the entire molybdenum output over the mine’s life.
A $772.7 Million War Chest
The drilling momentum is backed by one of the sector’s largest recent capital raises. Almonty closed a heavily oversubscribed private placement of convertible notes in early June, issuing 2.25% senior unsecured convertible notes due July 2031. Including the full exercise of the over-allotment option, net proceeds amounted to approximately $772.7 million USD. The company has earmarked roughly $50 million of that to refinance existing debt, set aside funds for capped-call transactions, and allocated about $543 million for working capital and general corporate purposes — explicitly including potential acquisitions.
The financial firepower strengthens Almonty’s balance sheet as it transitions from developer to producer. Sangdorf’s tungsten mine has already begun commercial operations, and the molybdenum program is expected to follow once a formal resource estimate is completed. That estimate, analysts note, remains the key near-term catalyst not yet priced into the stock.
Should investors sell immediately? Or is it worth buying Almonty?
Stock Consolidates After 120% Rally
Almonty shares closed on Friday at CAD 26.54, representing a gain of more than 120% since the start of the year. However, the stock sits about 20% below its 52-week high of CAD 33.35, reached in April. With annualized volatility hovering near 99%, the stock remains highly sensitive to news flow from the critical materials sector. The relative strength index sits at roughly 53, indicating neither overbought nor oversold conditions.
Eight analysts covering the stock assign a “Strong Buy” rating, with an average price target of CAD 24.29 and a high-end estimate of CAD 36. The current price already exceeds the average target, suggesting the market is pricing in further upside from the pending resource update and eventual production timeline.
Execution Over Expectation
Almonty’s ability to secure a $772.7 million convertible, accelerate a molybdenum drilling program, and lock in offtake agreements within weeks reflects a broader shift in the critical minerals sector. Companies that can demonstrate tangible progress — not just promises — are drawing institutional capital and government support. South Korea’s aggressive push for supply-chain independence gives Almonty a political tailwind that few Western miners can match.
Almonty at a turning point? This analysis reveals what investors need to know now.
With the drilling program on track to finish its 12,000-metre target, the next milestone will be a formal resource statement for the Sangdong molybdenum zone. If the grades hold, Almonty will have effectively doubled its strategic metal exposure in a single campaign — and given investors a second catalyst to watch alongside its tungsten operations.
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