Almonty's $773M Convertible Fuels Sangdong Ramp as Tungsten Crosses $3,000 and China Tightens Supply
Published on 06/25/2026 at 13:54 | Redaktion boerse-global.de
The global tungsten market has breached a critical price level, with quotes now above $3,000 per metric ton unit as Beijing throttles back exports. That environment places Almonty Industries in a uniquely powerful position: the Canadian miner holds the largest tungsten deposit outside China and has just secured a massive cash injection to drive its flagship Sangdong project toward full production.
Almonty placed a convertible bond worth $700 million, coupled with a $100 million overallotment option, generating net proceeds of approximately $773 million after costs. The capital is earmarked for the rapid expansion of the Sangdong mine in South Korea, a deposit historically ranked among the world's biggest tungsten resources. The response from equity markets was less enthusiastic, however — the stock shed roughly 8% in late June as the convertible's dilutive overhang combined with a broader sector rotation that also dragged down indices such as the Nasdaq-100.
Demand for tungsten is intensifying from two directions. The metal's extraordinary heat resistance makes it indispensable for semiconductors — Intel is a major consumer — and for armor-piercing ammunition used by defense contractors such as Rheinmetall. With substitution all but impossible, Western industrial buyers are scrambling for supply chains that do not run through China, which currently dominates global output. That structural deficit has pushed prices past $3,000 and made projects like Sangdong economically viable on their own merits.
Should investors sell immediately? Or is it worth buying Almonty?
The Sangdong asset is Almonty's centerpiece. The company plans to bring the mine to nameplate capacity as quickly as possible, positioning itself as a strategic supplier for European and North American markets. Beyond South Korea, Almonty is also advancing tungsten projects in Europe, diversifying its geographic footprint. The convertible bond provides the financial runway to execute on both fronts without the immediate pressure of additional equity raises.
On the trading front, the stock has continued to consolidate. Over the past week shares fell a further 10%, closing at C$23.77 in Toronto — a notable pullback from the April high. Yet the longer-term picture remains intact: year?to?date gains stand at nearly 98%, and over twelve months the stock has more than quadrupled. The price still sits comfortably above the 200?day moving average, and the Relative Strength Index at roughly 43 indicates a neutral zone, having unwound the overbought conditions seen in the spring.
As long as tungsten holds above $3,000, the fundamental underpinning for Almonty's expansion story stays solid. The company now has both a rising commodity price and a $773 million war chest to accelerate the Sangdong ramp — a combination that may eventually outweigh the near-term profit-taking that has clipped the shares in recent weeks.
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