Almonty's Q2 Numbers Reveal a Company in Hyperdrive — But the Fine Print Matters
Published on 08/12/2026 at 08:20 | Redaktion boerse-global.de
The scale of Almonty Industries' transformation is hard to overstate. In the second quarter of 2026, the tungsten producer generated revenue of 42.99 million Canadian dollars, a 498 percent leap from the 7.19 million Canadian dollars it booked in the same period a year earlier. Net income swung to 181.8 million Canadian dollars from a loss of 58.2 million Canadian dollars in the prior-year quarter.
The headline figures, however, carry a substantial caveat. Roughly 173.1 million Canadian dollars of that net result came from non-cash gains tied to the revaluation of derivatives — a bookkeeping adjustment that flatters the bottom line but says little about the underlying mining operation. Strip that out, and the operating picture is still markedly improved: adjusted EBITDA reached 17.6 million Canadian dollars, reversing a negative 4.8 million Canadian dollars a year ago, while gross margin came in at 60.7 percent. Operating income from the mining business stood at 26.1 million Canadian dollars.
The Price Effect Driving the Surge
The revenue explosion owes much to market conditions. European prices for ammonium paratungstate, the key intermediate product, averaged 3,075 US dollars per MTU in the second quarter — a staggering jump from 453 US dollars in the same period last year. That pricing tailwind coincided with the operational startup of the Sangdong mine in South Korea, which began processing stockpiled ore into saleable tungsten concentrate on July 1, 2026.
On a US-dollar basis, second-quarter revenue came to 31.053 million dollars, with earnings per share of 0.45 dollars — comfortably ahead of the 0.07-dollar consensus estimate, though revenue fell short of the 35.038 million dollars analysts had expected. Under GAAP, Almonty reported diluted earnings per share of 0.62 Canadian dollars, versus a loss of 0.30 Canadian dollars in the prior-year quarter.
A Convertible That Changed the Balance Sheet
The operational momentum has been matched by a significant financial overhaul. In early June, Almonty placed a convertible bond worth 800 million US dollars, carrying a 2.25 percent coupon and maturing in 2031. The offering was oversubscribed, with investors exercising the full greenshoe option. The proceeds are earmarked for two priorities: optimizing the current Phase 1 production at Sangdong and preparing the groundwork for a potential Phase 2 expansion.
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That second stage is the bigger prize. Phase 1 is designed to process 640,000 tonnes of ore annually, while Phase 2 could nearly double that figure to 1.2 million tonnes. The company ended the quarter with roughly 1.2 billion Canadian dollars in cash, a substantial war chest compared with 268.4 million Canadian dollars at the close of 2025.
The market's initial reaction to the convertible was not entirely warm. When the terms became known, the shares slipped around 12 percent in after-hours trading as investors weighed the dilution implications. Gurufocus also flagged the stock as significantly overvalued relative to its calculated fair value.
Strengthening the Commercial Foundation
Beyond the balance sheet, Almonty has been shoring up its customer relationships. In mid-July, the company extended its offtake agreement with Global Tungsten & Powders (GTP), a subsidiary of the Plansee Group, by six years. The revised contract increases delivery volumes by 40 percent and improves the price Almonty receives across all contracted volumes by roughly 6.3 percent. The deal locks in long-term revenue visibility at a time when tungsten demand is climbing in defense and electronics manufacturing — the metal is essential for armor plating, munitions, and electronic components.
The company's capital markets profile has also improved. Since June 29, 2026, Almonty's shares have been included in both the Russell 1000 and Russell 3000 indices, a development that should bolster institutional demand in North America. In August, the company filed a new shelf registration for potential future equity issuance, which also covers an employee participation plan — a move designed to tie management incentives more closely to the company's growth trajectory. Management is simultaneously evaluating a tungsten oxide facility in South Korea and project expansions in Montana and Portugal.
What's Next for the Tungsten Producer
For investors, the immediate focus shifts to execution. The transition from Phase 1 to the planned capacity expansion at Sangdong will test the company's operational discipline. The hefty cash position provides ample financial runway, and the persistently elevated tungsten price offers a supportive backdrop. From its new headquarters in Dillon, Montana, Almonty is positioning itself as a key supplier to Western industrial and defense supply chains — a strategic stance that gains relevance as geopolitical tensions over critical minerals continue to build.
