Almonty’s Sangdong Launch and Index Promotion Backfire as Shares Slide 13%
Published on 07/05/2026 at 15:13 | Redaktion boerse-global.de
The tungsten miner Almonty Industries has delivered two long-awaited catalysts in rapid succession: the start of commercial production at its Sangdong mine in South Korea and entry into the Russell 1000 and 3000 indices. Yet the market response was anything but celebratory. In the week following the Russell inclusion at the end of June, the stock shed approximately 13% of its value, underscoring the gap between operational milestones and investor patience.
By Friday, the shares had clawed back some ground to close at C$23.14. That still left them roughly 31% below the April peak, a reminder of the extraordinary volatility that has accompanied Almonty’s transition from explorer to producer. The 50-day moving average of C$26.10 now sits about 11% above the current price, while the 200-day line at C$18.34 provides a longer-term floor.
The production milestone that finally arrived
On July 1, 2026, Almonty officially began processing ore at Sangdong, a project that had been under development for years. CEO Lewis Black described the start-up as a historic turning point. The material already accumulated on site is enough to sustain operations for roughly two-and-a-half months, and management estimates the gross value of that stockpile at US$68 million.
Should investors sell immediately? Or is it worth buying Almonty?
The timing is fortunate. Benchmark ammonium paratungstate prices in Rotterdam have surged to US$3,185 per tonne, a 350% gain this year alone, as Western nations scramble to reduce dependence on Chinese supply. Almonty, now a producing entity, is positioned to capture those elevated prices directly.
Big gains but a sobering gap
Despite the post-Russell sell-off, Almonty’s longer-term trajectory remains steep. The stock has advanced 92% year-to-date and 245% over the past twelve months. That rally, however, leaves the shares still trading about 30% under the 2024 high and just below the consensus analyst target of C$25.00.
The near-term technical picture is mixed. The relative strength index sits at 43.4, squarely in neutral territory. A decisive push above the 50-day moving average would require more than the production start alone—investors want evidence that Sangdong can ramp up reliably and convert its stockpile into recurring cash flow. The company itself has flagged that reducing operational losses is a priority as the mine moves into steady state.
Volatility and the road ahead
Almonty’s 91% volatility reading captures the market’s nervous energy. The Russell inclusion should bring additional institutional liquidity, but the initial sell-off suggests that index funds are still weighing execution risk against the commodity tailwind. CEO Black has called the index promotion a purely performance-driven achievement, yet the stock’s reaction shows that even milestone-laden stories require consistent proof before they regain traction.
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