Almonty Industries: Deep Pocketed and Russell-Bound, Yet the Market Keeps Selling
Published on 06/27/2026 at 18:52 | Redaktion boerse-global.de
Almonty Industries’ shares have lost nearly 14% in the past seven trading sessions, a puzzling slide given the avalanche of positive news. The tungsten miner just raised US$800 million through a convertible bond issue, is set to enter the Russell 1000 and 3000 indexes on Monday, and delivered a quarterly report that showed revenue more than tripling. Yet the stock closed Friday at C$23.00, a full 31% below its April high of C$33.35.
The convertible bond, placed on June 4, was originally sized at US$700 million but was upsized after being fully subscribed. The notes carry a 2.25% coupon, mature in 2031, and include a greenshoe option that was exercised in full for an additional US$100 million. Proceeds will largely fund the company’s centrepiece asset: the Sangdong tungsten mine in South Korea, where Phase 1 is already operational. Processing 640,000 tonnes of ore per year, Phase 1 is expected to yield around 2,300 tonnes of tungsten concentrate annually. Phase 2, which will double capacity to 1.2 million tonnes, is slated to come online in 2027. At full tilt, Sangdong could supply roughly 40% of the world’s tungsten demand outside China.
Those operational milestones are reinforced by Almonty’s strengthening balance sheet. The company ended the first quarter with C$259.9 million in cash. Adjusted EBITDA came in at C$6.1 million, while operating cash flow flipped from negative C$4.4 million a year earlier to positive C$9.7 million. Revenue surged 221% year on year to C$25.4 million, propelled by higher tungsten prices and robust output from the Panasqueira mine in Portugal. Almonty still reported a net loss of C$5.26 million, but that was almost entirely attributable to non-cash revaluation charges on derivatives and warrants, and compares favourably with a loss of C$34.62 million the year before.
Should investors sell immediately? Or is it worth buying Almonty?
The Russell entries, effective at Monday’s open, are a structural catalyst. With some US$12.2 trillion in assets benchmarked to the Russell US indexes, passive funds will be compelled to buy Almonty shares in proportion to the company’s weight. Inclusion in the Russell 3000 automatically brings membership in the Russell 1000 and the associated growth and value sub-indexes. For a stock that has been under persistent selling pressure in the short term—it is 14% below its 50-day moving average—this forced buying could provide a powerful counterweight.
Beyond tungsten, Almonty is also drilling into molybdenum. At the neighbouring Sangdong molybdenum project, 37% of the planned 26 boreholes have been completed, and assay results so far confirm historical grades. South Korea is grappling with a molybdenum supply deficit, and the government is actively encouraging domestic companies to secure their own sources. Almonty’s molybdenum play dovetails with a broader strategic shift: starting in January 2027, US defence rules will ban Chinese tungsten from American military supply chains. Almonty has already relocated its headquarters to Dillon, Montana, and acquired the nearby Gentung tungsten project, which is expected to reach production readiness in the second half of 2026.
Analysts remain undeterred by the recent price action. Oppenheimer lifted its price target from US$22 to US$25 in early June, maintaining an Outperform rating. Texas Capital upgraded the stock to Strong Buy in April. The consensus rating stands at Strong Buy, with an average price target of US$23.54—almost exactly where the stock currently trades. On a one-year basis, the shares have still gained a staggering 296%; year to date, the advance is more than 91%. The relative strength index sits at 40.9, approaching oversold territory without having crossed the threshold.
Whether Monday’s mandated index buying can absorb the recent selling wave will become apparent in the first few hours of trading. With a full order book, a rising production profile, and multiple demand catalysts on the horizon, Almonty appears well positioned for the long term—but the market is demanding proof in the short term.
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