Almonty Banks $773M from Oversubscribed Convertible as Western Tungsten Supply Race Intensifies
13.06.2026 - 17:41:56 | boerse-global.de
Almonty Industries has closed the books on one of the biggest financing rounds in the junior mining space this year. The company raised $800 million through an oversubscribed private placement of convertible senior notes, with net proceeds landing at roughly $772.7 million after transaction costs. The deal, completed on June 9, carries a 2.25% coupon and matures in July 2031.
Investors responded with a more than 9% weekly gain, pushing the stock to 24.80 CAD by the June 13 close. That rally leaves the shares about 26% below the April peak of 33.35 CAD but still up roughly 106% year to date and nearly fivefold over the past twelve months. The relative strength index sits at 47.5, a neutral reading after the recent bounce.
The notes were issued under SEC Rule 144A to institutional buyers, who also took up the full over-allotment option for an additional $100 million. Conversion terms are set at approximately $27.40 per share — a 32.5% premium over the June 4 closing price. Around $83 million of the proceeds is being deployed into capped-call transactions designed to limit shareholder dilution upon conversion, with a cap price of $41.36 per share, roughly double the reference price.
Should investors sell immediately? Or is it worth buying Almonty?
Proceeds will largely bankroll the ramp-up at the Sangdong tungsten mine in South Korea, Almonty’s flagship asset. The company also earmarked funds for working capital and potential acquisitions. Sangdong is expected to generate an estimated $231 million in revenue this year, though profitability remains constrained by ongoing cash burn until production reaches steady state.
The financing comes against a backdrop of tightening supply in the tungsten market. China controls more than 80% of global output, and the U.S. has legislated a ban on Chinese tungsten imports for defense purposes beginning in 2027. Japanese tungsten hexafluoride producers — who account for roughly a quarter of the global market — have warned semiconductor customers in South Korea of potential shortages as early as the second half of 2026. Almonty has deepened its ties to the U.S. defense sector through partnerships with American Defense International, participation in the Pentagon’s Critical Minerals Forum, and the appointment of former U.S. generals to its board.
Analysts maintain a Buy rating with a price target of 25.00 CAD, leaving the stock effectively trading at target levels. The next catalyst will be operational progress at Sangdong: if the mine can deliver on its production timetable, the company can demonstrate that the capital raised is translating into output. Otherwise, the dilution risk from the convertible could weigh on sentiment.
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