Almonty Industries: Molybdenum Drilling Confirms Grades as Tungsten Ramp Gathers Pace
Published on 06/26/2026 at 12:12 | Redaktion boerse-global.de
Almonty Industries is building a dual-metal growth story that straddles two of the most sought-after critical minerals. At its Sangdong site in South Korea, the company has completed 37% of a planned 26-hole drilling campaign targeting molybdenum, with early results validating the historical ore grades of the deposit. The program sits adjacent to Almonty’s flagship Sangdong tungsten mine, which reached commercial production in March 2026.
The molybdenum push comes at a time when spot prices for the metal have climbed roughly 23.5% over the past twelve months, fueled by demand from the semiconductor and defense sectors. Completion of the remaining 63% of the drill program is needed before a formal resource estimate can be compiled, but the interim data already underscores the quality of the asset.
Capital in place, production underway
The exploration update follows a heavily oversubscribed convertible bond issue that netted Almonty US$772.7 million after closing on 9 June 2026. The notes carry a 2.25% coupon, mature in 2031, and convert at US$27.40 per share. Proceeds are earmarked for the Phase 2 expansion of the Sangdong tungsten mine, while Phase 1 is already delivering.
First-quarter 2026 results showed revenue of CAD$25.4 million, a 221% jump year-on-year, and adjusted EBITDA of CAD$6.1 million — marking the project’s first profitable quarter. Operating cash flow reached CAD$9.7 million, supported by higher prices for ammonium paratungstate and steady output from the Panasqueira mine in Portugal.
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The initial phase of Sangdong is processing around 640,000 tonnes of ore annually, with a near-term target of 2,300 tonnes of tungsten concentrate per year. Once fully ramped, the mine is expected to supply roughly 40% of the non-Chinese tungsten market, positioning Almonty as a critical link in Western supply chains.
Geopolitical tailwinds and US exposure
Almonty relocated its headquarters to Dillon, Montana, where it owns the Gentung tungsten project. The site is expected to be production-ready in the second half of 2026 and is already lined up to supply defense contractors such as Lockheed Martin and RTX for Patriot and Tomahawk missile systems.
China’s export restrictions on critical minerals, which took effect in early 2025, have accelerated the urgency. From 2027, US regulations will prohibit the use of Chinese tungsten in military applications, creating a mandatory market shift that Almonty is poised to capture. The company also faces a deadline of its own: management must prove that the Sangdong mine can operate reliably at full scale.
Risks temper the bull case
Despite the operational milestones, the stock has shown high volatility. Over the past 30 days, shares fell 14.04%, though they remain up 316.54% year-to-date. The annualized volatility stands at 92.40%, reflecting the speculative nature of a single-asset miner in a politically charged commodity.
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The convertible note introduces potential dilution if the share price climbs well above the conversion price of US$27.40, though Almonty can settle in cash. On the downside, a ramp-up of Sangdong to its eventual capacity of 4,600 tonnes per year carries execution risks, as does the permitting process for Gentung in Montana. Falling tungsten prices, meanwhile, could pressure margins.
On 25 June 2026, the stock rose 2.1% to EUR€14.80. With 89% gains since the start of the year, the market has already priced in much of the strategic premium. The next catalyst will be whether the remaining drill holes at the molybdenum project can expand the resource base — and whether the Sangdong mine can deliver on its promise at scale.
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