Almonty Industries: Sangdong's First Concentrate Marks a Pivotal Shift for the Tungsten Producer
Published on 08/08/2026 at 03:41 | Redaktion boerse-global.de
The market's mood toward Almonty Industries has brightened considerably over the past week, with shares climbing roughly 14% across seven trading sessions. The catalyst, however, has less to do with the production milestone that initially sparked the move and more with the fading of technical selling pressure that had weighed on the stock for weeks.
The Delisting Overhang Clears
Almonty's voluntary exit from the Toronto Stock Exchange, completed on July 31, 2026, triggered a wave of forced selling from index-tracking funds that could no longer hold the stock after its removal from Canadian benchmarks. That pressure has now largely dissipated. Trading data from August 5 and 6 indicates the bulk of these mechanical sell-offs are finished, with the shares advancing 5.40% on August 4 and a further 4.17% the following day as institutional and retail buyers stepped back in.
The listing consolidation — which also includes an approved voluntary withdrawal from the Australian Securities Exchange, with CDI trading ending August 28 and delisting effective September 1 — is part of a deliberate strategy to concentrate liquidity on the Nasdaq and Frankfurt exchanges. Almonty cited persistently low and declining trading volumes on the ASX relative to its primary US listing as the rationale.
A Hefty Capital Injection
Alongside the operational progress, Almonty has fortified its balance sheet with a substantial convertible bond placement. The company raised $800 million in gross proceeds — exceeding the initially planned $700 million after investors fully exercised the overallotment option. The notes carry a 2.25% annual coupon, mature in 2031, and feature a conversion price of approximately $27.40 per share, well above the current trading level.
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The capital is earmarked for the expansion of the Sangdong tungsten mine in South Korea, with a portion reserved for potential downstream processing facilities, including a tungsten oxide plant.
From Developer to Producer
The recent optimism also reflects a fundamental transition in Almonty's corporate identity. With processing operations at Sangdong commencing in July, the company has shifted from mine developer to active producer of saleable tungsten concentrate. Management had spent months stockpiling ore in preparation: roughly 120,000 tonnes grading 0.24% tungsten trioxide sat at the site by the end of Q1 2026, supplemented by another 19,700 tonnes at 0.35% during Q2. The combined inventory now stands at approximately 139,700 tonnes at a blended grade of around 0.25% WO?, positioned to keep the plant running at capacity from day one.
The timing aligns with a broader geopolitical shift. Washington is preparing an import ban on Chinese tungsten for defense procurement, slated to take effect in 2027, positioning Almonty as an alternative supplier for Western defense contractors and semiconductor manufacturers seeking to reduce exposure to Chinese supply chains.
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The Earnings Question Lingers
Despite the positive momentum, the single-day surge of 13.6% that closed the stock at $12.56 came after a bruising stretch — the shares had fallen 29.6% in the four weeks prior. Zacks Investment Research currently rates the stock a "Buy" (Rank 2) under the Mining – Miscellaneous category, yet a cautionary signal remains: earnings estimates for the current quarter have not budged over the past 30 days. Historically, rallies unaccompanied by upward estimate revisions tend to lack staying power.
The fundamental question for investors is whether rising production volumes and realized tungsten prices will translate into genuine earnings growth. Until Sangdong operates at full capacity, the stock's pronounced volatility — and its sensitivity to every development from the mine — is likely to persist. The next checkpoint arrives with the quarterly report, expected later in August, which should offer updated operational details and a fresh financial outlook.
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