Almonty's Record Quarter Gets Buried Under a Fresh Equity Overhang
Published on 08/12/2026 at 11:21 | Redaktion boerse-global.de
Investors handed Almonty Industries a brutal verdict on Tuesday despite what was, on paper, the tungsten producer's strongest quarter on record. Revenue multiplied nearly fivefold, the company swung to a headline profit, and its flagship Korean mine finally started processing ore — yet the shares still tumbled roughly 12 percent in after-hours trading.
The disconnect highlights a familiar tension in growth-stage mining: operational momentum can be overshadowed in an instant by the prospect of dilution.
The Numbers Behind the Noise
Almonty generated $43.0 million in revenue for the second quarter of 2026, a 498 percent surge from the $7.2 million posted a year earlier. Even so, that figure came in about $6.46 million short of what analysts had modeled.
The bottom line told a more flattering story at first glance. The company reported net income of $181.8 million, or $0.62 per share, blowing past the $0.08 per share consensus estimate. But the bulk of that — $173.1 million — consisted of non-cash gains tied to the IFRS revaluation of derivatives and warrants linked to the company's convertible notes. On an operating basis, adjusted EBITDA landed at $17.6 million, a swing of more than $22 million from the loss recorded in the second quarter of 2025.
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A Capital Structure in Motion
The real source of investor anxiety emerged on August 11, when Almonty disclosed a slate of structural moves. The company filed shelf registrations allowing it to issue common shares worth approximately $246.79 million, with a portion earmarked for an employee equity incentive program.
That announcement landed barely two months after Almonty closed a $800 million convertible note offering in June — a deal that was heavily oversubscribed, with banks exercising the full greenshoe option. The 2.25 percent notes mature in 2031. The prospect of additional share issuance so soon after that sizable raise is widely seen as the trigger for the post-earnings selloff.
The capital was always earmarked for growth. Proceeds from the convertible are funding both the optimization of Sangdong's phase-one production and preparatory work on a potential second expansion stage. Phase 1 is designed to process 640,000 tonnes of ore annually, while Phase 2 could nearly double that to 1.2 million tonnes.
Sangdong Comes Alive
Operationally, the quarter marked a genuine inflection point. Sangdong, Almonty's flagship asset in South Korea, officially commenced operations on July 1, 2026, and by late July the processing plant had entered throughput mode. The mine is now converting stockpiled ore into saleable tungsten concentrate — a transition from development project to active producer.
The timing could hardly be better. European APT (ammonium paratungstate) prices averaged $3,075 per MTU in the second quarter, a staggering jump from $453 per MTU in the same period last year. With tungsten demand rising across defense and electronics manufacturing — where the metal is critical for armor, munitions, and components — Almonty is selling into one of the tightest markets the industry has seen.
Locking In Offtake
Almonty also strengthened its commercial position during the quarter. The company renegotiated its supply agreement with Global Tungsten & Powders, a subsidiary of the Plansee Group, finalizing the revised terms in July 2026. The contract extension adds six years to the agreement's duration and increases contracted volumes by 40 percent. Pricing across all contracted volumes improves by roughly 6.3 percent, providing Almonty with greater revenue visibility over the long term.
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A Shifting Corporate Footprint
The company is also streamlining its listing structure. Almonty has received formal approval to voluntarily delist its common shares from the Australian Securities Exchange, following the earlier relocation of its corporate headquarters from Toronto to Dillon, Montana. The move is intended to position the company closer to U.S. defense and industrial supply chains — a strategic priority as Western governments scramble to secure critical mineral supplies outside China.
Visibility among North American institutional investors has already improved. Since June 29, 2026, Almonty shares have been included in both the Russell 1000 and Russell 3000 indices, a development that should support ongoing institutional demand.
Management has signaled it is also evaluating a tungsten oxide facility in South Korea, alongside project expansions in Montana and Portugal. Whether those ambitions can be funded without further spooking shareholders will depend on how carefully the company executes its newly registered share issuance program in the months ahead. For now, the market is clearly watching the capital structure as closely as the production ramp.
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