Almonty’s Sangdong Mill Starts Grinding as a $800 Million Convertible Tests Investor Patience
Published on 07/09/2026 at 12:32 | Redaktion boerse-global.de
The Canadian tungsten developer has crossed the line from project to producer, but the market is struggling to look past a huge convertible note that could dilute existing holders. Almonty Industries began processing ore at its flagship Sangdong mine in South Korea’s Gangwon province on July 1, 2026, converting a substantial stockpile into saleable tungsten concentrate for the first time. The milestone marks the end of a years-long development phase and the start of real revenue generation for the company.
Behind the operational breakthrough lies a financing of uncommon scale. In June 2026, Almonty placed convertible senior notes with a 2.25% coupon and 2031 maturity, tapping demand that overwhelmed supply. Including full exercise of the greenshoe option, the deal raised $800 million. The paper carries an initial conversion price of roughly $27.40 per share. Management retains the right to settle conversions in cash rather than stock, a provision that could soften the dilution blow for current equity holders if exercised.
Investors, however, have not greeted the package with enthusiasm. On the Toronto Stock Exchange the shares fell 6.3% on the first day of processing, closing at C$20.99. The stock has also been volatile on the Nasdaq, where Almonty trades in parallel. The proximate cause appears to be profit-taking after the stock’s recent run-up, but the convertible’s overhang is a persistent headwind. With $800 million in potential new shares hanging over the market, near-term sentiment remains fragile.
The production ramp brings tangible assets to bear. Almonty had accumulated approximately 139,700 tonnes of stockpiled ore, with an average grade of 0.25% tungsten trioxide. At prevailing market prices, the material carries an estimated gross value of $68 million — enough to feed the mill for roughly 2.6 months at initial throughput rates. That buffer gives the company time to fine-tune ore blending and plant performance before it must depend on fresh mining output.
Should investors sell immediately? Or is it worth buying Almonty?
Western governments and defense contractors are scrambling to secure tungsten supplies outside China, which still controls more than 80% of global production. Tungsten prices are hovering near historic highs as strategic stockpiles are built up. Sangdong is one of the largest known tungsten resources beyond China’s borders, and Almonty is positioning itself as a turnkey supplier for buyers who want reliable, vertically integrated supply chains. The company is also advancing a downstream tungsten oxide facility in nearby Yeongwol to capture more of the value chain.
Almonty’s inclusion in the Russell 1000 and Russell 3000 indices on June 29, 2026, boosted trading volumes and institutional visibility, but the broader equity market turbulence that coincided with the reconstitution added to the stock’s choppiness. Index funds were obligated to buy shares, yet the forced buying was apparently met by sellers eager to lighten positions ahead of any convertible-related dilution.
Diversification beyond tungsten is also on the menu. The Sangdong property hosts a molybdenum deposit, and Almonty has launched a large-scale drilling program to confirm those resources. About 37% of the planned holes are now complete, with early results described as encouraging. If successful, the molybdenum leg would add a second revenue stream and reduce the single-commodity risk embedded in the current business model.
Almonty at a turning point? This analysis reveals what investors need to know now.
For now, all eyes are on how quickly the stockpile turns into cash flow. The mill’s ability to produce consistent-quality concentrate will determine whether Almonty can lock in sales contracts at the elevated tungsten prices. Meanwhile, the convertible’s fate — whether management ultimately dilutes equity holders or protects them by repaying in cash — hangs over the stock like a second question that investors are still struggling to answer.
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