Almonty Industries Braces for Russell Inclusion After 14% Weekly Drop and $800M Convertible Bond
Published on 06/27/2026 at 15:16 | Redaktion boerse-global.de
Investors in Almonty Industries are staring at a curious disconnect. The tungsten producer has just closed an $800 million convertible bond issue, seen quarterly revenue triple year-on-year, and is set to join the Russell 1000 and 3000 indices on Monday. Yet the stock tumbled nearly 14% last week to C$23.00, leaving it 31% below the April peak of C$33.35 and trading roughly 14% below its 50-day moving average.
The selloff stands in stark contrast to the underlying fundamentals. For the first quarter of 2026, Almonty reported revenue of C$25.4 million – up 221% from a year earlier – driven by higher tungsten prices and strong output at the Panasqueira mine in Portugal. Operating cash flow swung to a positive C$9.7 million from a negative C$4.4 million in the prior-year period, while the adjusted EBITDA came in at C$6.1 million. The net loss of C$5.3 million was almost entirely attributable to non-cash revaluation effects on derivatives and warrants. The company ended March with C$259.9 million in cash.
Fresh capital is now flowing in from another source. On 4 June, Almonty placed convertible notes worth $800 million, originally targeted at $700 million but heavily oversubscribed. The bonds carry a 2.25% coupon, mature in 2031, and include the full exercise of a $100 million greenshoe option. The proceeds are earmarked primarily for the Sangdong tungsten mine in South Korea, where Phase 1 began commercial production in March. That stage is processing around 640,000 tonnes of ore per year to yield some 2,300 tonnes of tungsten concentrate annually.
Should investors sell immediately? Or is it worth buying Almonty?
The index inclusion that takes effect on Monday adds a structural demand layer. Almonty is being added to both the Russell 1000 and the Russell 3000, behind which sit roughly $12.2 trillion in benchmarked assets. Index-tracking funds and ETFs must now buy the stock in proportion to its weighting, creating a wave of forced buying that had been absent from the shares. The relative strength index of 40.9 suggests the stock is approaching oversold territory, and the year-to-date gain still stands at a robust 91%.
Wall Street remains constructive on the story. Oppenheimer recently lifted its price target to $25.00, while the consensus among analysts sits at $23.54. The optimism hinges on Sangdong’s ramp. Phase 2, expected by 2027, would double processing capacity to 1.2 million tonnes per year and roughly 4,600 tonnes of tungsten concentrate annually – enough to cover about 40% of non-Chinese global tungsten demand. Separately, Almonty is drilling for molybdenum on the same property, with 37% of planned 26 holes completed, and early assays confirm historical grades.
The timing dovetails neatly with shifting US defense procurement rules. From January 2027, American military supply chains will be barred from using Chinese tungsten, prompting Almonty to relocate its corporate headquarters to Dillon, Montana and acquire the nearby Gentung tungsten project, which is expected to reach production readiness in the second half of 2026.
Against that backdrop, last week’s 14% slide looks like a short-term bout of profit-taking ahead of a major structural catalyst. The real test begins Monday when index-linked buying kicks in – and the market gets to see whether fundamental momentum can overpower the corrective drag. For now, the bulls are betting on Sangdong.
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Almonty Stock: New Analysis - 27 June
Fresh Almonty information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
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