Sangdong's First Ore Run Backed by $700M Convertible as Almonty Targets Vertical Integration
Published on 07/04/2026 at 12:46 | Redaktion boerse-global.de
Almonty Industries has crossed the threshold from mine developer to active producer, starting ore processing at its Sangdong tungsten mine in South Korea’s Yeongwol province on 3 July 2026. The milestone ends a nearly two-decade development phase and positions the site as a potential cornerstone of Western supply chains for critical minerals. CEO Lewis Black highlighted long-term supply agreements with the United States that are already in planning, framing Sangdong as a counterweight to China’s dominant grip on tungsten production.
The company enters production with a stockpile of roughly 139,700 tonnes of ore grading 0.25% WO?, valued at around US$68 million at current market prices. The initial processing phase focuses on high-purity ammonium paratungstate, the key intermediate product in the tungsten value chain. A second expansion stage aims to lift output to 4,600 tonnes of tungsten concentrate annually, and Almonty is also planning a dedicated tungsten oxide plant in Yeongwol as part of a broader push toward vertical integration.
Capital raised, debt refinanced, dilution capped
The operational ramp-up is backed by a freshly closed US$700 million convertible note offering, placed with qualified institutional buyers at a 2.25% coupon and maturing in 2031. The deal was oversubscribed, and initial purchasers were granted an option for an additional US$100 million in notes. Roughly US$83 million of the net proceeds will fund capped-call transactions designed to limit equity dilution upon conversion. Another US$50 million goes toward refinancing existing debt, while the bulk — around US$543 million — is earmarked for working capital, general corporate purposes, and potential acquisitions.
Should investors sell immediately? Or is it worth buying Almonty?
The capital injection comes as Almonty’s financials show marked improvement. First-quarter 2026 revenue surged 221% year over year to US$25.4 million, compared with US$7.9 million a year earlier. Full-year 2025 revenue stood at US$32.5 million, up 13% from US$28.8 million in 2024. Operating cash flow swung to positive US$9.7 million in Q1 2026 from negative US$4.4 million in the prior-year quarter. The net loss narrowed sharply to US$5.3 million from US$34.6 million. As of 31 March, Almonty held US$259.9 million in cash and US$169.5 million in working capital.
Index inclusion adds institutional tailwind
Just days before the production announcement, Almonty was admitted to the Russell 1000 and Russell 3000 indices on 29 June, effective at the market open that day, as part of the annual reconstitution. Passive funds tracking those benchmarks must now mechanically add the shares — a development that could inject fresh liquidity and broaden institutional visibility for a stock that has already risen 245.89% over the past twelve months.
A separate corporate governance disclosure revealed routine equity-based compensation for directors. Daniel D’Amato, Gustave F. Perna, and Mark Trachuk each received deferred share units or restricted share unit conversions on 1 July, consistent with a standard board-wide compensation cycle.
Stock consolidates after explosive rally
Almonty at a turning point? This analysis reveals what investors need to know now.
The market’s initial response to the processing start was positive but measured. Almonty shares closed at C$23.14 on Friday, up 4.00%, chipping away at a roughly 30% pullback from the 52-week high of C$33.35 set on 17 April. On a weekly basis the stock was nearly flat at +0.61%, and the year-to-date gain of 92.35% still reflects a dramatic move from the July 2025 low of C$4.70.
Technical indicators suggest a consolidation phase. The 14-day relative strength index sits at 43.4, neutral territory. The stock trades 11.33% below its 50-day moving average of C$26.10 but 26.14% above the 200-day moving average of C$18.34, keeping the long-term uptrend intact. However, the annualized 30-day volatility of 90.65% underscores how sharply the shares can swing on news.
Some market observers expect near-term tungsten and APT prices to cool modestly as new supply from Sangdong enters the market. Yet long-term demand from defense, electronics, and automotive sectors is expected to underpin the mine's strategic value. Management’s immediate focus is on gradually ramping up processing volumes and executing the second-phase expansion, with the recent capital raise and index listing providing both financial and structural support.
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