Almonty's Operational Triumph at Sangdong Contradicted by Insider Selling Spree
Published on 07/13/2026 at 22:14 | Redaktion boerse-global.de
Almonty Industries marked a pivotal shift in early July when its flagship Sangdong mine in South Korea began producing marketable tungsten concentrate, transitioning the company from a development-stage miner to a certified producer. The milestone positions Almonty as a crucial non-Chinese supplier of a metal essential for defense armor, semiconductor manufacturing, and advanced electronics at a time when Western governments are scrambling to secure supply chains.
Yet for all the operational progress, the stock has been under severe pressure. Shares slid 5.2% earlier in the week and then tumbled another 8.6% on Monday to C$21.37, bringing them more than 35% below the 52-week high of C$33.35 reached in April. The decline has been fueled in part by a wave of insider selling that saw directors unload shares worth nearly C$228 million over the past 90 days, including a single C$4.8 million sale by director Mark Trachuk on July 2.
Trachuk sold 200,000 common shares at C$24.07, trimming his stake by 7.4%. CEO Lewis Black bought back shares worth C$1.5 million during the same period, but that did little to offset the overall selling pressure — executives alone accounted for C$75.1 million of the net disposals. Additional sales by related parties have also been announced. The timing of the sell-off is striking: it coincided almost exactly with the July 1 startup of commercial production at Sangdong.
In stark contrast to the insider exodus, Wall Street analysts have become more bullish. DA Davidson raised its price target from US$25 to US$33 on July 10, retaining a 'Buy' rating and citing progress at Sangdong, potential U.S. government involvement, a solid balance sheet, and record tungsten prices. Oppenheimer followed by lifting its target from US$22 to US$25 with an 'Outperform' rating, pointing to strong demand from semiconductor and defense sectors. Texas Capital upgraded to 'Strong Buy' in April, and B. Riley Financial moved its target from C$17 to C$23 in March.
Should investors sell immediately? Or is it worth buying Almonty?
Overall, according to MarketBeat, Almonty has one 'Strong Buy', four 'Buy', and one 'Sell' rating, with an average price target of C$21.88 — close to the current trading level. Weiss Ratings provides the sole bearish voice with a 'Sell (D-)'. TipRanks warns that while the transition from construction to ore processing should eventually stabilize production, the near-term cash burn remains high, raising the risk of further dilution if profitability does not ramp quickly.
Recent quarterly results offer a mixed picture. Revenue of C$18.52 million in the first quarter beat estimates of C$15.44 million, and earnings per share matched forecasts at C$0.01. However, the net margin remains deeply negative at -262.29%, and return on equity is -11.01%. Despite these weak profitability metrics, institutional investors have piled in. Van Eck Associates boosted its stake by a staggering 13,294.7% in the fourth quarter to hold 11.24 million shares worth about C$99 million. Cooper Creek Partners Management increased its position by 110.4% to a holding valued at roughly C$69 million.
The stock's addition to the Russell 1000 and Russell 3000 indices on June 29 also drove forced buying from passive funds, followed by profit-taking that added to the volatility. Shortly after, Almonty closed a heavily oversubscribed convertible note offering of US$700 million due 2031, providing ample near-term liquidity. The annualized 30-day volatility now stands at nearly 100%, making Almonty one of the most volatile names in the critical metals space.
Almonty at a turning point? This analysis reveals what investors need to know now.
The current price of C$21.37 sits 12.24% below its 50-day moving average of C$25.25 and 13.94% above the 200-day average of C$18.76. The relative strength index (RSI) of around 41.3 signals neither oversold nor overbought conditions, pointing to a consolidation phase after the steep rally that saw gains of more than 77% year-to-date and over 227% on a twelve-month basis.
With Sangdong now producing concentrate and roughly 139,700 tonnes of ore stockpiled at an average grade of 0.25% WO? — representing a gross value of about US$68 million at current tungsten prices — the company has a tangible revenue stream for the first time. The next quarterly report will reveal whether that output translates into sustainable cash flows, a factor that could ultimately close the gap between operational progress and the stock's recent weakness.
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Almonty Stock: New Analysis - 13 July
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