Almonty Industries Turns the Corner: Cash Flow Breaks Even as $800M Convertible Reshapes Its Balance Sheet
Published on 08/06/2026 at 16:12 | Redaktion boerse-global.de
The tungsten producer that spent much of the summer absorbing forced selling from index-tracking funds is now showing signs of a genuine inflection point. Almonty Industries has reported its first positive operating cash flow since the Sangdong mine in South Korea began commercial production, while simultaneously completing a hefty convertible bond placement that bolsters its financial firepower.
The cash flow milestone
Financial statements released in early August 2026 show Almonty generated $9.7 million in operating cash flow during the first quarter, a sharp reversal from the $4.4 million outflow recorded in the same period a year earlier. Revenue jumped 221 percent year-over-year to $25.4 million, driven by the ramp-up at Sangdong and steady output from the Panasqueira mine in Portugal.
The bottom line remains in the red, but the bleeding has slowed considerably. Almonty posted a net loss of $5.3 million for the quarter, versus a $34.6 million loss in Q1 2025.
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A bond sale that got bigger than planned
Alongside the quarterly figures, Almonty closed a significant capital raise. The company placed convertible notes carrying a 2.25 percent coupon and maturing in 2031. Initial plans called for $700 million, but underwriters exercised their full over-allotment option, pushing the final size to $800 million. After fees and expenses, Almonty pockets approximately $772.7 million in net proceeds.
Management intends to use the funds to refinance existing debt and provide working capital for Sangdong as it advances toward full production. A portion of the proceeds is earmarked for capped-call transactions, a hedging strategy designed to limit dilution for existing shareholders should the notes eventually convert into equity.
The index-driven sell-off runs its course
The share price has spent much of the past month under pressure from a technical, rather than fundamental, force. Almonty completed its voluntary delisting from the Toronto Stock Exchange on July 31, 2026, triggering its removal from several passive indices, including the FTSE Global Small Cap Index. ETFs and institutional index funds were forced to unwind their positions by the cutoff date, contributing to a 17.27 percent decline over the course of a month and a 30.61 percent slide over the trailing three months.
That forced selling now appears to be exhausted. The stock climbed 5.40 percent on Tuesday and added another 4.17 percent on Wednesday, bringing the share price to €11.995. Market observers read the rebound as a sign that the non-fundamental selling pressure has largely cleared.
A streamlined listing structure takes shape
The Toronto exit is part of a broader consolidation effort. Almonty is concentrating its trading liquidity on the Nasdaq Capital Market, where it trades under the ticker ALM, and is also pursuing a voluntary delisting from the Australian Securities Exchange, expected to be completed by the end of August 2026. The Frankfurt listing remains in place, preserving access for European investors.
The company says the moves will reduce administrative costs and regulatory burdens associated with maintaining multiple primary listings.
Sangdong: from development to delivery
Almonty at a turning point? This analysis reveals what investors need to know now.
Operations at Sangdong officially commenced on July 1, 2026, with the processing plant now producing saleable tungsten concentrate. Phase 1 of the facility processes approximately 640,000 tonnes of ore annually, yielding around 2,300 tonnes of high-grade tungsten concentrate per year. The operation currently draws on an ore stockpile of roughly 139,700 tonnes, valued at approximately $68 million at prevailing market prices.
Phase 2 expansion is slated for 2027, which would double processing capacity to 1.2 million tonnes of ore annually.
CEO Lewis Black, in a shareholder letter dated August 2, 2026, underscored the strategic importance of Western tungsten production, noting that the global market continues to grapple with a structural deficit driven by rising demand from the defense and technology sectors. Sangdong is positioned as a key supplier for supply chains outside China.
A mixed scorecard for shareholders
Despite the recent turbulence, the longer-term picture remains positive. Almonty shares are still up 49.36 percent year-to-date, and the company's market capitalization stands at approximately €3.35 billion. With the index-related selling now in the rearview mirror and the balance sheet strengthened by the convertible placement, the question is whether the stock can finally decouple from technical factors and trade on the fundamentals of a ramping tungsten operation.
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