The Fine Print Behind Almonty's Record Quarter: A $182 Million Gain With an Asterisk
Published on 08/15/2026 at 02:41 | Redaktion boerse-global.de
On paper, Almonty Industries just delivered the kind of quarter that turns heads. Net income of C$181.8 million against a year-ago loss of C$58.2 million, revenue up nearly fivefold, and a cash position that has ballooned past the billion-dollar mark. But the tungsten producer's headline numbers deserve a closer read — and the market's reaction to them has been telling.
The stock closed Thursday at US$15.07, having traded between US$14.00 and US$15.09 during the session. That followed an 8.3 percent pop on August 11, when the quarterly results landed. Yet the enthusiasm has cooled quickly: while the shares remain higher on a weekly basis, they're still down roughly 22 percent over three months. Investors, it seems, are weighing the strength of the operational turnaround against the distortions baked into the earnings figure.
Where the profit actually came from
The mechanics of the quarter are straightforward. Revenue surged 498 percent to C$43.0 million, powered by a tungsten market that has gone vertical. The average European APT price jumped from roughly US$453 per MTU in the year-ago period to about US$3,075 — a more than sixfold increase that flows straight through to the income statement.
Mining earnings before certain items reached C$26.1 million, reversing a C$0.9 million loss a year earlier. With production costs of C$16.9 million, that translates to a 60.7 percent gross margin in the mining business. Administrative expenses climbed from C$4.1 million to C$8.9 million, reflecting higher staffing, consulting, and legal costs tied to the company's expansion.
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But here's the catch: of that C$181.8 million net profit — equivalent to US$0.62 per diluted share — roughly C$173.1 million came from non-cash gains on the revaluation of derivatives and warrants. The company itself stresses these bookkeeping effects had no impact on operations or liquidity. Strip them out, and the underlying picture is more modest: adjusted EBITDA of C$17.6 million for the quarter, versus negative C$4.8 million a year earlier.
The first quarter of 2026 offers a useful comparison. Almonty posted a net loss of C$5.3 million then, after a C$34.6 million loss in the prior-year period. Adjusted EBITDA came in at just C$6.1 million — a fraction of the second quarter's figure. The improvement was largely due to the absence of a C$25.8 million warrant-liability revaluation loss that had weighed on the earlier period.
A war chest with a potential cost
The balance sheet tells a more unambiguous story. Cash stood at roughly C$1.23 billion as of June 30, up sharply from C$268.4 million at the end of 2025. The bulk of that increase came from an oversubscribed US$800 million convertible bond offering carrying a 2.25 percent coupon.
Operating cash flow for the first half turned positive at C$31.6 million, compared with an outflow of C$14.9 million in the same period last year.
The convertible, however, carries a trade-off. It bolsters liquidity today, but if bondholders eventually convert, existing shareholders face dilution. If they don't convert, the company still carries the interest burden. That overhang is part of why the post-earnings rally has faded — the market is trying to price in both the operational momentum and the potential cost of that fresh capital.
Sangdong still finding its feet
All of this arrives while the company's flagship project remains in its early stages. Phase I of the Sangdong tungsten mine in South Korea's Gangwon province is still ramping up toward commercial operation. At full capacity, the facility is designed to process around 640,000 tonnes of ore annually, with an already-approved Phase II potentially doubling that to 1.2 million tonnes.
The current results, notably, still reflect production largely from the Panasqueira mine in Portugal. Sangdong's full contribution has yet to appear in any financial statement — meaning the quarters ahead will provide the first genuine test of the new mine's earnings power.
Almonty at a turning point? This analysis reveals what investors need to know now.
A streamlined listing and a longer runway
Separately, Almonty is consolidating its exchange presence. The company will delist from the TSX at the close of trading on July 31, 2026, with the ASX delisting effective September 1. The Australian exchange has already given formal approval under Listing Rule 17.11.
Management frames the move in terms of liquidity logistics rather than strategy. The vast majority of daily trading volume now occurs on the Nasdaq, while activity on the TSX and ASX has dwindled. As of July 14, 2026, CDIs held on the Australian register represented just 0.80 percent of shares outstanding.
The company also extended its offtake agreement with Global Tungsten & Powders LLC on July 14. The contract now runs six years longer, contracted volumes rise 40 percent, and pricing for Almonty improves by roughly 6.3 percent. Kalkine Media calculates the expected annual contract revenue at US$490 million at current APT prices.
The pieces are in place: record tungsten prices, a fortified balance sheet, a longer contracted revenue runway, and a flagship mine that has yet to contribute a single quarter of results. Whether the share price can hold its recent gains will likely come down to how the market weighs Sangdong's operational progress against the dilution risk embedded in that convertible.
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