Almonty Prepares for Critical Mineral Production Surge as Russell Inclusion and Molybdenum Drilling Advance
Published on 06/21/2026 at 14:06 | Redaktion boerse-global.de
Almonty Industries has watched its shares multiply nearly six times over the past twelve months, yet the next leg of the rally may be just days away. On June 29 the tungsten and molybdenum developer joins the Russell 1000 and Russell 3000 indices, an event that analysts estimate could generate net demand for roughly 13 million shares — three times the stock’s average daily volume.
Alongside the index reshuffle, Almonty is pressing ahead with an accelerated drilling campaign at its Sangdong molybdenum project in South Korea’s Gangwon province. Of the 26 planned boreholes totaling approximately 12,000 metres, 37% have been completed. Results so far match historical data, bolstering confidence in the resource. The urgency reflects a national molybdenum shortage: South Korea’s inventories are tight, the government has publicly urged companies to secure supplies, and the country currently relies on China for the bulk of its imports — a vulnerability for its steel and shipbuilding industries. Almonty has said it will begin extraction as soon as the deposit is fully delineated.
Almonty has already secured an offtake partner for the entire output. SeAH M&S, South Korea’s largest molybdenum processor and the world’s second-largest molybdenum oxide smelter, will buy 100% of production for the project’s full mine life. SeAH operates the only molybdenum roaster in Asia outside of China, adding a logistical edge. The molybdenum deposit lies just 150 metres from Almonty’s existing Sangdong tungsten mine, allowing shared infrastructure that keeps costs down. Based on historical government data, management estimates a 60-year mine life with full capacity of around 5,600 tonnes per year, targeted from the end of 2026. The strategic importance of the metal is underscored by a 23.5% rise in the molybdenum spot price over the past year, driven by demand from aerospace, defence and renewable energy sectors.
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Almonty’s core tungsten business is also hitting milestones. Phase 1 of the Sangdong tungsten mine, which started commercial operations in March, is on track to reach full capacity in July — producing roughly 640,000 tonnes of ore annually, equivalent to about 2,300 tonnes of tungsten concentrate. A second phase, due by 2027, would double that to 4,600 tonnes, covering nearly 40% of global demand outside China. That timing coincides with a US defence regulation, DFARS 252.225-7052, which from 1 January 2027 prohibits the purchase of certain tungsten powders and alloys from China, Russia, Iran and North Korea. China currently controls more than 80% of global tungsten production, leaving Western supply chains scrambling for alternatives.
Almonty labels its integrated approach the “Korean Trinity” — combining tungsten mining, molybdenum extraction, and a planned tungsten oxide facility to turn South Korea into a hub for strategic minerals. The blueprint is backed by a recent capital injection. In early June the company placed convertible bonds worth $800 million, netting approximately $772.7 million after costs. Management has earmarked $543 million for working capital, general corporate purposes and potential acquisitions, with the remainder funding the Sangdong ramp-up.
The stock closed the week at C$26.67, about 20% below its 52-week high of C$33.35 reached in mid-April. Despite the pullback, the year-to-date gain stands at 121%, and the twelve-month return is an eye-catching 461%. The relative strength index sits at 53, suggesting the stock is not overbought, though the 30-day annualized volatility of nearly 99% underscores the risk of sharp swings.
With the Russell rebalancing due on Sunday, Phase 1 tungsten capacity expected in July, and molybdenum drilling results continuing to flow, Almonty faces a dense cluster of catalysts. The combination of index inclusion, a fully permitted second metal stream, and a long-term offtake agreement places the company at the centre of a critical-mineral supply chain pivot that is accelerating on both sides of the Pacific.
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