Tungsten Supply Crunch and Sangdong Startup Power Almonty to 12% Gain Despite Insider Sales
Published on 07/12/2026 at 22:23 | Redaktion boerse-global.de
Almonty Industries capped the week with a 12.40% surge on Friday, closing at C$23.38, as two powerful catalysts converged: the activation of its Sangdong processing plant in South Korea and the inclusion of its stock in the Russell 1000 and Russell 3000 indexes. The dual triggers helped the shares shrug off news that a director had just sold nearly C$4.8 million worth of equity.
The plant began processing ore into tungsten concentrate on July 1, marking Almonty’s transition from mine developer to active producer — a milestone that investors had been awaiting for months. A stockpile of roughly 139,700 tonnes of ore, grading between 0.24% and 0.35% tungsten trioxide, is already in place, representing a gross market value of about US$68 million. Management says that inventory is sufficient for roughly 2.6 months of Phase 1 operations while the facility ramps up. Once Phase 2 is complete, Almonty targets annual output of 4,600 tonnes of concentrate, equivalent to about 40% of the world's tungsten supply outside China — a goal that would make it the largest Western-controlled producer.
The Russell index rebalancing, effective June 29, added further momentum by forcing passive funds and index-tracking portfolios to buy the stock. Almonty’s entry into both the Russell 1000 and the broader Russell 3000 has already increased analyst coverage and institutional visibility. Oppenheimer’s Ian Zaffino recently lifted his price target to C$25 from C$22, while DA Davidson issued a US$33 target after a virtual roadshow with CEO Lewis Black, maintaining a Buy rating. The US investment bank pointed to higher long-term tungsten price assumptions and the company’s strengthened balance sheet as reasons for the upgrade.
Should investors sell immediately? Or is it worth buying Almonty?
That balance sheet gained heft from a convertible note offering in June that raised US$800 million, including full exercise of the overallotment option. The notes carry a 2.25% coupon, mature in 2031, and delivered net proceeds of roughly US$772.7 million — capital earmarked for the ramp-up at Sangdong and expansion to Phase 2. The offering was oversubscribed, reflecting strong investor appetite for exposure to a tungsten market in the grip of a supercycle. Ammonium paratungstate prices are currently between US$3,040 and US$3,250 per metric tonne unit, driven by Chinese export restrictions and robust demand from defence, armour, and electronics sectors. Almonty has locked in binding offtake agreements with floor prices, including commitments for US defence applications, providing revenue visibility in an otherwise volatile market.
Despite the upbeat operational news, insider selling remains a counterpoint. Director Mark Trachuk disposed of 200,000 common shares on July 2 at C$24.07, trimming his stake by 7.4% and generating proceeds of C$4.814 million. That transaction is part of a broader pattern: over the past 90 days, insiders have sold a net C$227.6 million, with executives accounting for C$75.1 million. Lewis Black and Daniel D’Amato have both offloaded large blocks, though Black also bought C$1.5 million worth of stock during the same period. Three other directors received shares as compensation on July 1 through deferred share units and restricted share unit conversions — routine transactions involving no cash and no market selling.
The stock has more than doubled over the past twelve months, climbing 200.51%, and is up 94.35% year to date. Yet it remains nearly 30% below its 52-week high of C$33.35 set in April. The 50-day moving average at C$25.40 and the 100-day average at C$25.39 both sit above Friday’s close, signalling near-term resistance, while the 200-day moving average at C$18.69 provides a solid long-term floor. The 30-day annualized volatility of 97% underscores the stock’s extreme price swings, but the relative strength index of 48.0 points to neutral territory — neither overbought nor oversold.
The market now looks to Sangdong’s first deliveries of marketable concentrate in the coming weeks, along with any further Chinese export curbs that could push tungsten prices even higher. Almonty’s next quarterly results are due in mid-August and will offer the first hard numbers on cash flow from the new production stream. For now, the combination of a functioning mine, index membership, and a supply-constrained commodity backdrop has outweighed the headwind of insider selling — though that tension is likely to persist as the ramp-up continues.
Ad
Almonty Stock: New Analysis - 12 July
Fresh Almonty information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
