Almonty’s $800M Convertible and Sangdong Ramp-Up Shift the Tungsten Balance Away from China
13.06.2026 - 15:18:53 | boerse-global.de
Almonty Industries is accelerating its campaign to break China’s stranglehold on tungsten supply, armed with an oversubscribed $800 million convertible note and a South Korean mine that is already churning out concentrate. The twin catalysts have sent the stock surging: shares closed at CAD 24.75 on Friday, up nearly 4% on the day and more than 400% higher over the past twelve months.
The latest leg of the rally was fueled by the closing of a private placement of 2.25% convertible senior notes due in July 2031. The deal, which closed June 9, was oversubscribed and the overallotment option was fully exercised. After transaction costs, Almonty pocketed roughly $772.7 million net. A slice of the proceeds, about $83 million, will go into capped-call transactions to limit shareholder dilution upon conversion. The conversion price sits at $27.40 per share, a 32.5% premium over the June 4 close, while the cap is set at $41.36 — a 100% markup against the same reference price.
Most of the fresh capital is earmarked for the Sangdong mine in South Korea, Almonty’s flagship project and the centerpiece of its western supply-chain strategy. The facility officially started operations earlier this year and is currently producing around 2,300 tonnes of tungsten concentrate annually in its first phase. A planned expansion, due by 2027, aims to lift output enough to cover roughly 40% of all western demand. That aggressive target comes as Western defense and technology companies scramble to diversify away from Chinese suppliers, who dominate nearly 80% of global tungsten production.
Should investors sell immediately? Or is it worth buying Almonty?
The strategic repositioning goes beyond the mine itself. Almonty recently relocated its headquarters to Montana, positioning itself closer to U.S. industrial and defense customers. Texas Capital has initiated coverage with a buy rating, citing the company’s expanding mine portfolio and supportive raw-material prices.
Operational momentum is building as well. In the first quarter, revenue surged 221% year-over-year to $25.4 million, while operating cash flow swung sharply positive to nearly $10 million. The turnaround was driven by higher tungsten prices and robust output at the company’s Portuguese operations.
Despite the stellar run, the stock is not without technical stress. The 50-day moving average, currently at CAD 26.92, briefly undercut intraday on Friday before buyers stepped in and recovered most of the loss. The distance to the 200-day line remains a comfortable 44% above the current price, underscoring the strength of the longer-term trend. However, from its April high of CAD 33.35, the stock is still down about 26%, and the relative strength index stands at 47.5 — a neutral reading after the recent bounce.
With analysts pegging a price target of CAD 25.00, the stock is already trading in that ballpark. The next catalyst will be tangible production progress at Sangdong. If the mine ramps up on schedule, the financial firepower from the convertible deal could turn Almonty’s ambition of dominating western tungsten supply into a reality.
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