Almonty Industries: A $800 Million Bond, a Tripled Revenue, and a 14% Slide — All Before Monday's Russell Debut
27.06.2026 - 20:24:44 | boerse-global.de
Tungsten miner Almonty Industries heads into the new trading week carrying a curious mix of tailwinds and headwinds. The company’s share price tumbled nearly 14% last week, closing at C$23.00 on Friday — 31% below its April peak of C$33.35. Yet that drop comes just days before the stock is inducted into the Russell 1000 and Russell 3000 indices, an event that will force passive funds and ETFs to pile into the equity. The contradiction between operational momentum and market sentiment could hardly be starker.
A major financial overhaul lies behind the company’s recent activity. In early June, Almonty placed C$800 million in convertible bonds originally slated at C$700 million, but the offering was oversubscribed and the full greenshoe of C$100 million was exercised. The notes carry a 2.25% coupon, mature in 2031, and have already padded the balance sheet: at the end of March, Almonty held C$259.9 million in cash. That war chest is earmarked for debt reduction and the expansion of the Sangdong tungsten mine in South Korea.
Operationally, the first quarter delivered a clear turnaround. Revenue surged 221% year-on-year to C$25.4 million, fueled by higher tungsten prices and strong output from the Panasqueira mine in Portugal. Adjusted EBITDA clocked in at C$6.1 million, swinging from a loss, while operating cash flow flipped to positive C$9.7 million from negative C$4.4 million a year earlier. The reported net loss of C$5.3 million was almost entirely attributable to non-cash revaluation charges on derivatives and warrants.
Should investors sell immediately? Or is it worth buying Almonty?
Sangdong itself is the linchpin of Almonty’s strategic story. Commercial production began in March 2026, with Phase 1 processing 640,000 tonnes of ore annually to yield roughly 2,300 tonnes of tungsten concentrate. Phase 2, slated for 2027, will double capacity to 1.2 million tonnes. The timing aligns with a geopolitical catalyst: from January 2027, new U.S. defense procurement rules will ban tungsten sourced from China, Russia, or North Korea from Western military supply chains. Almonty, which recently moved its corporate headquarters to Dillon, Montana, and acquired the nearby Gentung tungsten project, aims to fill around 40% of global ex-China demand when Sangdong reaches full capacity. Drilling on an adjacent molybdenum project is also under way, with roughly 37% of the planned 26 holes completed so far.
The Russell inclusion on Monday is the immediate catalyst. The Russell 1000 and 3000 indices collectively track about $12.2 trillion in benchmarked assets, meaning index-tracking funds have little choice but to buy Almonty shares in proportion to its new weight. That structural demand is something the stock has lacked until now. Yet the market has been selling into the news: the RSI sits at 40.9, just shy of oversold territory, and the share price has already closed below its 50-day moving average of C$26.78.
Despite the weekly rout, the longer-term trend remains intact. Almonty’s stock is still up more than 91% year-to-date, and the forced index buying — combined with a revenue base that has more than tripled — gives the bears a stiff headwind to overcome. The first trading hours on Wall Street on Monday will show how much of that forced demand has already been priced in and how much is still waiting to hit the tape.
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Almonty Stock: New Analysis - 27 June
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