Almonty Industries: With $773M in Hand and a Mine Restarted, Execution Is Everything
Published on 06/26/2026 at 16:53 | Redaktion boerse-global.de
Almonty Industries has passed two inflection points in a matter of months. In March 2026, the Sangdong tungsten mine in South Korea restarted after a three-decade hiatus. Days later, a heavily oversubscribed convertible note offering netted the company $772.7 million. The stock, however, has not rewarded the milestones. Over the past 30 days, it has fallen 14% by one measure and nearly 20% by another, depending on the reference period. The annualized volatility, estimated at 91% to 92.4%, tells the real story: this is a high-octane bet on a single ramp.
Tungsten is the metal that makes armour-piercing ammunition, high-performance cutting tools, and advanced semiconductors possible. It has the highest melting point of any metal, and roughly 80% of global supply comes from China. The U.S. and the European Union have classified it as a critical raw material, and China has imposed export controls on several tungsten products. The supply crunch is acute enough that the Pentagon has committed to eliminating Chinese and Russian tungsten from its procurement chain by 2027. That creates an artificial demand wall that only non-Chinese producers like Almonty can fill.
The Sangdong deposit is historically one of the largest tungsten reserves outside China. Phase one of the restart is processing about 640,000 tonnes of ore per year, targeting 2,300 tonnes of tungsten concentrate annually. Full capacity of 4,600 tonnes would cover roughly 40% of non-Chinese demand. Almonty also operates the Panasqueira mine in Portugal, acquired the Gentung project in Montana, and relocated its headquarters to the U.S. The Gentung site is expected to be production-ready in the second half of 2026.
The financing gives Almonty the balance-sheet firepower to pursue that ramp. The convertible note carries a 2.25% coupon — negligible servicing costs for a mining company at this stage. The conversion price is set at roughly $27.40 per share. Management can settle the conversion in cash, but if the stock soars, a share settlement would still dilute existing holders. The funds are earmarked for working capital, debt refinancing, and the Sangdong expansion.
Should investors sell immediately? Or is it worth buying Almonty?
Q1 2026 financials show the strategy starting to pay off. Revenue hit CAD 25.4 million, up 221% year-over-year, driven by higher ammonium paratungstate prices and steady output from Panasqueira. Operating cash flow turned positive at CAD 9.7 million. The numbers are improving, but they remain dwarfed by the capital that has been raised and the share-price swings that have followed.
On a 12-month basis, the stock is still up between 288% and 316%, depending on the starting point. From the April 2026 high of CAD 33.35, however, it has retreated roughly 32% to CAD 22.52. The relative strength index sits near 40, and the price is about 16% below its 50-day moving average — signs of oversold territory but also of a market that has not found a floor.
The bear case is built on execution risk. Large mining projects frequently suffer cost overruns and delays. The full ramp to 4,600 tonnes of concentrate per year is ambitious. Any hiccup could derail profit forecasts and reignite selling. The U.S. regulatory hurdles for Gentung could also slow progress. And if tungsten prices soften, the margin expansion implied by the current valuation would evaporate.
Almonty at a turning point? This analysis reveals what investors need to know now.
The bull case rests on a structural deficit in tungsten supply that is expected to last at least until 2030. Almonty is one of the few Western miners positioned to capitalise. The convertible financing removes immediate liquidity constraints. Sangdong is producing ore. The question now is whether management can convert those first tonnes into a reliable, high-volume operation. The next few months will reveal whether the stock’s volatility is a buying opportunity or a warning.
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