Almonty’s Defence-Focused Board Gets 99% Vote as $773M Convertible Finances Tungsten Ambitions
12.06.2026 - 12:36:35 | boerse-global.de
Shareholders at Almonty Industries’ annual general meeting on 9 June delivered an unmistakable message: they back the company’s pivot towards the US defence sector. Two retired US generals, Gustave F. Perna and Alan Estevez, were re-elected with over 99% of the votes cast. The rest of the seven-member board, including CEO Lewis Black (who received 79% support) and directors Daniel D’Amato and Mark Trachuk (each just above 60%), also won approval. The strong mandate for the military-focused nominees underscores the strategic direction as Almonty seeks to become the West’s dominant tungsten supplier.
That transition is being bankrolled by one of the largest financing deals in the company’s history. Almonty closed a convertible bond offering that netted approximately US$772.7 million after expenses. Originally set at US$700 million, the size swelled after institutional investors fully exercised a US$100 million overallotment option. The notes carry a 2.25% coupon and mature in 2031. Proceeds will be used for capped-call transactions (triggered at a share price of US$41.36) to limit dilution, the repayment of around US$50 million in existing liabilities, plus working capital and potential acquisitions.
The immediate effect of the capital raise was felt in the stock price. After a month-long slide of nearly a third, Almonty’s shares rebounded 11.7% on Thursday to close at C$23.78 on the Toronto Stock Exchange. Investors appeared to view the combination of the convertible and strong operational results as a buying opportunity.
The first-quarter figures for 2026 certainly justify the optimism. Revenue tripled to C$25.4 million, operating cash flow swung from a negative C$4.4 million to a positive C$9.7 million, and adjusted EBITDA turned from a loss of C$2.4 million to a gain of C$6.1 million. The net loss narrowed sharply from C$34.6 million to C$5.3 million, while cash on hand stood at a comfortable C$259.9 million at the end of March.
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Much of that cash is destined for the Sangdong mine in South Korea, which began production in March 2026 and is now ramping up. The asset is central to Almonty’s strategy of securing Western supply chains for critical minerals, and the company has even moved its headquarters to Montana to deepen its ties with the US military.
Another catalyst looms on 29 June, when Almonty is scheduled to join the Russell 1000 and Russell 3000 indices. With roughly US$12.2 trillion in assets benchmarked to Russell indexes, index funds and exchange-traded funds will be forced to buy the stock, providing a fresh wave of structural demand.
Analysts remain overwhelmingly positive. Nine rate the stock a “Strong Buy”, with a mean price target of US$23.80. Oppenheimer’s Ian Zaffino recently raised his target from US$22 to US$25, citing global tungsten supply tightness and the decoupling of defence-grade tungsten powder prices from the broader market after recent tensions in the Middle East.
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The US Department of Defense is adding further momentum. Starting in January 2027, it will ban Chinese tungsten from American defence supply chains—a direct tailwind for Almonty as the leading non-Chinese producer. The board’s overwhelming endorsement of the defence-focused directors suggests the company is exactly where shareholders want it to be.
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