Almonty's $800M Convertible Note Finances Sangdong Production Ramp as Insiders Unload $227M in Stock
Published on 07/14/2026 at 10:01 | Redaktion boerse-global.de
Almonty Industries has entered a new chapter as a certified tungsten producer, but the transition has been anything but smooth. The company started commercial output at its Sangdong mine in South Korea on July 1, triggering an initial rally that quickly gave way to a sharp correction — and a flood of insider stock sales that has raised eyebrows among retail investors.
The Sangdong milestone was met with euphoria on July 10, when Almonty shares surged nearly 11% in New York to $14.70 and jumped 12.4% in Toronto to C$23.38. The lifts were amplified by the company's inclusion in the Russell 1000 and Russell 3000 indices. But the celebration was short-lived. By Monday, July 13, the stock had reversed course, dropping 6.7% on the NYSE to a low of $15.52 before closing near $15.50, and tumbling 9.2% on the TSX to C$21.24 on volume of roughly 670,360 shares.
The pullback came as insiders moved aggressively to cash out. Director Mark Trachuk sold 200,000 shares at C$24.07 apiece on July 2, collecting about C$4.8 million and reducing his stake by 7.4%. Over the past 90 days, net insider sales totaled $227.6 million, with $75.1 million of that directly attributable to company executives, according to Barchart data. The selling coincides with the very moment many had expected management to signal confidence in the mine's ramp-up.
Should investors sell immediately? Or is it worth buying Almonty?
That confidence, however, remains intact among Wall Street analysts. DA Davidson lifted its price target to $33 from $25 with a Buy rating, while Oppenheimer raised its target to $25 (Outperform) and Texas Capital upgraded to Strong Buy. B. Riley Financial set a $23 target in March, and Bank of America Securities reaffirmed its Buy. The lone dissenter is Weiss Ratings, which maintains a Sell (D-) rating. The consensus on MarketBeat is Moderate Buy with an average target of $21.88 — slightly above the current New York price but implying limited near-term upside from here.
Almonty's financial structure has been reinforced ahead of the production ramp. In June, the company placed convertible notes carrying a 2.25% coupon and maturing in 2031. Underwriters fully exercised their overallotment option, pushing total proceeds to $800 million at an initial conversion price of roughly $27.40 per share. Net proceeds of $772.7 million are earmarked for debt refinancing and balance-sheet strengthening, giving Almonty ample liquidity — its quick ratio stands at 2.37, current ratio at 2.45, and debt ratio at just 0.30 — even as it operates at a net loss (P/E of minus 30.03).
The mine itself is in an initial stabilization phase. Over the first 2.6 months, Almonty will process a surface stockpile of approximately 139,700 tonnes of ore grading between 0.24% and 0.35% tungsten trioxide, with an estimated gross value of $68 million. The company plans to then shift to continuous full production of 4,600 tonnes of tungsten concentrate per year. A virtual investor meeting with CEO Lewis Black covered the ramp-up timeline, potential cooperation with the U.S. government, and the strong balance sheet. Separately, majority shareholder Plansee Group confirmed in its 2025/26 results — released July 7 — that it maintains a long-term tungsten supply relationship with Sangdong, adding a layer of offtake certainty.
Despite the recent turbulence, Almonty shares remain deeply in positive territory for the longer time frames. The stock has gained roughly 78% year-to-date and more than 227% over the past twelve months (the primary source puts the one-year gain at 259%). Still, the 30-day annualized volatility hovers near 100%, reflecting the tug-of-war between bullish tungsten fundamentals and the persistent insider selling. The relative strength index sits at 41.3, neither overbought nor oversold, while the current TSX price of C$21.37 is about 15% below the 50-day moving average of C$25.24 and roughly 14% above the 200-day average of C$18.76. The 52-week high of C$33.35, set on April 17, now looks distant — but the underlying thesis of a rising tungsten price and a newly commissioned mine in a politically stable jurisdiction keeps the story alive for most analysts.
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