Almonty’s $800M Convertible Fuels Tungsten Mine Expansion as Western Supply Chain Pivot Accelerates
10.06.2026 - 08:25:46 | boerse-global.de
For decades, China has held a stranglehold on tungsten, controlling more than 80% of global production. That grip is loosening. The United States will ban imports of Chinese tungsten for defence applications from 2027, creating an urgent need for alternative sources. Almonty Industries is positioning itself at the centre of that shift, with the Sangdong mine in South Korea as its flagship.
The company has just raised $800 million through a heavily oversubscribed convertible note offering. The deal included $100 million from a fully exercised over-allotment option, leaving Almonty with net proceeds of roughly $773 million after expenses. The notes, which mature in 2031, carry a 2.25% annual coupon and an initial conversion price of $27.40 per share.
Management plans to deploy about $543 million into operations and potential acquisitions. Another $83 million has been earmarked for hedging programmes designed to limit future dilution for existing shareholders.
Shareholder Backing and Production Ramp-Up
The financing was accompanied by strong support from investors. At Tuesday’s annual general meeting, the board received near-unanimous approval, with all directors re-elected by more than 99% of votes cast. CEO Lewis Black now has a clear mandate to push ahead with the expansion of Sangdong.
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Phase one of the mine came online in March this year. It is currently processing around 640,000 tonnes of ore annually, producing an estimated 2,300 tonnes of tungsten concentrate. The second phase, targeted for 2027, will roughly double that output to 4,600 tonnes per year. At full capacity, Sangdong alone could supply almost 40% of tungsten demand outside China.
Stock Market Turbulence
Despite the strategic progress, the equity has taken a beating in recent days. The stock closed Tuesday at C$21.86, sliding roughly 21% over the past week. The RSI has dropped to near 38, edging towards oversold territory. Short-term volatility is extreme: the annualised 30-day reading sits at over 100%.
Longer-term holders have little to complain about. The shares have surged about 351% over the past twelve months and are still up nearly 82% year-to-date, even after the pullback from the 52-week high of C$33.35 reached in mid-April. Such swings are typical when a developer transitions into a major producer.
Operational Momentum and Index Inclusion
The company is already delivering on the operating front. First-quarter 2026 revenue leaped 221% to $25.4 million, driven by strong tungsten prices and steady output from the Portuguese Panasqueira mine. Almonty also generated positive operating cash flow of $9.7 million during the quarter, a milestone that excludes any contribution from Sangdong’s higher capacity.
Almonty at a turning point? This analysis reveals what investors need to know now.
A further catalyst is imminent. Almonty is expected to join the Russell 1000 and Russell 3000 indices on June 29, a move that should boost liquidity and institutional visibility.
With a US import ban on Chinese tungsten coming into force next year and Western governments scrambling for secure supply chains, Almonty’s execution at Sangdong will determine whether the stock’s long-term story can outweigh the short-term noise.
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