Almonty Delivers on Sangdong Production as Tungsten Prices Surge — Why the Stock Is Still 34% Off Its Peak
Published on 07/08/2026 at 10:55 | Redaktion boerse-global.de
The gap between operational reality and market sentiment has rarely been wider at Almonty Industries. The tungsten specialist began processing ore at its long-awaited Sangdong mine in South Korea on July 1, 2026, officially transitioning from developer to producer. Yet its shares closed at CAD 21.85 on Tuesday, a full 34.48% below the April high of CAD 33.35. On one hand, tungsten prices have multiplied tenfold since the start of 2025, and Plansee Group — Almonty's largest shareholder — confirmed this month that it has secured long-term supply from Sangdong. On the other, a heavy convertible bond overhang and a brutal tech-led selloff in Seoul are keeping the equity under pressure.
The primary culprit for the stock's slide is the US$800 million convertible bond Almonty placed earlier this year, carrying a 2.25% coupon and an initial conversion price of US$27.40. That massive capital raise has mechanically weighed on the share price even as it filled the company's coffers for the expansion ahead. Superimposed on that is a broader macro rout: Seoul's KOSPI benchmark plunged 4.91% on Tuesday, triggering trading halts, as fears of AI capacity gluts and record profits at chip giants like Samsung stoked doubts about the cycle's peak. Almonty traded heavy volume on July 7 despite the local turbulence, signaling continued institutional and retail interest.
The Sangdong milestone itself is unequivocally positive. Almonty's mill is now converting stockpiled material into saleable tungsten concentrate, and a parallel drilling program of 12,000 meters is underway to confirm additional molybdenum deposits adjacent to the existing mine. Molybdenum, critical in defense and high-tech applications, adds a second revenue stream. The operational shift from developer to producer is the culmination of years of investment, and it places Almonty squarely in the path of a supply crunch that is only deepening.
Should investors sell immediately? Or is it worth buying Almonty?
China is tightening its grip on the global tungsten market from the supply side. Beijing has cut its 2026 production quotas by 8%, and export restrictions have helped drive the price of ammonium paratungstate from a range of US$1,650–1,900 per metric ton unit in February to over US$3,000 today. Meanwhile, the US Department of Defense regulation DFARS 252.225-7052 mandates that by January 1, 2027, all military supply chains must be completely free of tungsten from China, Russia, Iran and North Korea. With western processing markets still largely closed or dependent on Chinese secondary material, Sangdong is one of the few non-Chinese primary sources able to fill the gap. Almonty has reinforced this strategic positioning by relocating its headquarters to Dillon, Montana, and since late June has been included in the Russell 1000 and Russell 3000 indices, forcing passive ETFs to buy in.
Technically, the stock is flashing mixed signals. The 14-day relative strength index sits at 38.8, bordering on oversold territory. Almonty trades 18.18% above its 200-day moving average of CAD 18.49 but 15.28% below its 50-day average of CAD 25.79. The 30-day annualized volatility of 90.47% underscores just how jittery the shares have become. Plansee's latest annual report, released on July 7, showed revenue of €2.35 billion and explicitly reiterated its long-term offtake agreement from Sangdong, underscoring the industrial demand behind the tungsten boom.
Despite the near-term headwinds — the convertible bond hangover, tech-driven weakness in Seoul, and the stock's own wild price swings — the structural case for Almonty remains intact. The company is now a producing entity with a defined path to feeding the US defense supply chain before the 2027 deadline. If it can maintain production momentum, it stands to capture a critical role in the West's effort to decouple from Chinese tungsten dependence. For now, the market is demanding proof of ramp, not just promises of future output.
Ad
Almonty Stock: New Analysis - 8 July
Fresh Almonty information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
