Almonty Raises $700M Through Convertible as Sangdong Mine Enters Production Mode
Published on 07/04/2026 at 10:22 | Redaktion boerse-global.de
Almonty Industries closed the week at C$23.14, up 4.00%, as the tungsten miner’s long-awaited transition from developer to producer collides with a fresh capital injection. The stock has recouped about 30% of its slide from the April 17 peak of C$33.35, but the real story lies beneath the price action: a company that just posted its best quarter ever and secured a war chest to fund the next leg.
The convertible note, oversubscribed at US$700 million with a 2.25% coupon and 2031 maturity, gave qualified institutional buyers an option for an additional US$100 million. Net proceeds of around US$83 million will go into capped-call transactions to limit dilution from conversion, roughly US$50 million to refinance existing debt, and the bulk — about US$543 million — is earmarked for working capital, general corporate purposes and potential acquisitions. It is a vote of confidence that arrives just as the operating numbers start to turn.
First-quarter 2026 revenue surged 221% year-on-year to US$25.4 million, compared with US$7.9 million in the same period last year. For the full year 2025, revenue came in at US$32.5 million, up 13% from US$28.8 million. More important, operating cash flow flipped positive to US$9.7 million, versus a negative US$4.4 million a year earlier, while the net loss shrank from US$34.6 million to US$5.3 million. At March 31, the company held US$259.9 million in cash and US$169.5 million in working capital.
That financial momentum now has an operational anchor. On July 1, Almonty announced the official startup of the processing plant at the Sangdong mine in South Korea’s Gangwon province. The facility began feeding roughly 139,700 tonnes of stockpiled ore, grading an average of 0.25% tungsten trioxide, through the circuit in June. At current market prices, that stockpile carries a calculated gross value of about US$68 million and is expected to sustain Phase I throughput for roughly 2.6 months, providing a stable feed during the ramp-up. CEO Lewis Black noted that the plant is operating in a favorable price environment for tungsten.
Should investors sell immediately? Or is it worth buying Almonty?
The focus on Sangdong runs alongside a parallel push into molybdenum. An update on June 16 outlined a large drilling program at the adjacent Sangdong molybdenum project: 26 planned holes totalling 12,000 metres, of which about 37% are now complete, with assays confirming historic grades. Meanwhile, the Browns Lake project in the United States underpins the company’s broader strategy to position itself as a supplier of strategic minerals for Western defence, aerospace and semiconductor supply chains — reducing reliance on Chinese sources.
Institutional investors are taking notice. Almonty was added to both the Russell 1000 and the broader Russell 3000 indices on June 29, effective at the opening of trading that same day. The inclusion, part of the annual reconstitution that covers the 3,000 largest US stocks by market capitalisation, forces passive index funds to mechanically buy the shares, boosting liquidity and visibility.
Three directors — Daniel D’Amato, Gustave F. Perna and Mark Trachuk — received equity-based compensation on July 1 without any cash outlay, with D’Amato and Trachuk awarded deferred share units and Perna’s restricted share units converted into common stock. The simultaneous timing points to a routine, board-wide compensation cycle rather than a discretionary event.
Almonty at a turning point? This analysis reveals what investors need to know now.
Technically, the stock is taking a breather after a 12-month run of 245.89%. At C$23.14, it sits 11.33% below its 50-day moving average of C$26.10 but still 26.14% above the 200-day average of C$18.34, keeping the long-term uptrend intact. The relative strength index of 43.4 signals neutral territory, having exited overbought conditions since the April high. Annualised 30-day volatility of 90.65% underscores how sharply the shares react to news flow. Year-to-date, the stock is up 92.35%; compared with the 52-week low of C$4.70 set on July 29, 2025, it has increased nearly fivefold.
The combination of a fully funded balance sheet, a producing asset that just switched on, and index inclusion gives Almonty a rare trifecta. Whether the market needs a longer digestion period after the 12-month surge is another question.
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Almonty Stock: New Analysis - 4 July
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