Almonty’s Sangdong Mill Begins Processing Ore as China’s Tungsten Export Ban Lifts APT Prices 234%
Published on 07/08/2026 at 02:53 | Redaktion boerse-global.de
Almonty Industries has crossed the threshold from developer to producer, with its Sangdong mine in South Korea’s Gangwon province starting to feed stockpiled ore through the newly commissioned processing plant on 1 July 2026. Yet the market has greeted the milestone with something less than enthusiasm: the shares have shed 6.32% over the past 30 days and 35.53% from their 52-week high of C$33.35 set in mid-April, closing Monday at C$21.50.
The apparent disconnect between operational progress and share price performance reflects a complex tapestry of strategic positioning, heavy financing mechanics, and a tungsten market that is simultaneously exploding in price and tightening in supply. On the commodity side, ammonium paratungstate (APT) – a key intermediate in tungsten processing – has surged 234% since the start of 2026 after Beijing halted exports of tungsten carbide to Japan and Europe in the spring. Tungsten hexafluoride, critical for semiconductor manufacturing, jumped some 200% in April alone and now trades around US$150 per kilogram.
Almonty is one of the few integrated suppliers operating outside China’s orbit, making Sangdong a strategically vital asset as the US Department of Defense approaches a 1 January 2027 deadline that will prohibit purchases of tungsten from China, Russia, North Korea and Iran. The mine’s “Phase 2” expansion, due to double throughput by 2027, aims to give Almonty as much as 40% of non-Chinese tungsten supply.
For now, the mill is running on a stockpile of roughly 139,700 tonnes of run-of-mine ore accumulated during the development phase. The material grades 0.25% tungsten trioxide, representing a gross value of around US$68 million at current market prices. The company estimates that inventory will sustain the first-phase processing capacity for about two and a half months before the operation transitions to underground extraction of higher-grade material.
Should investors sell immediately? Or is it worth buying Almonty?
The shares, meanwhile, are trading well below their 50-day moving average of C$25.78 and 100-day average of C$25.28, but still show a 16.30% cushion above the 200-day average of C$18.49. The 14-day relative strength index has fallen to 37.8, brushing against oversold territory. From the 52-week low of C$4.70 set in late July 2025, the stock remains more than 350% higher, and year-to-date gains still stand at roughly 80%.
The most immediate headwind to the share price appears to be the convertible bond package Almonty arranged in June. The company issued US$700 million in convertible notes with an additional US$100 million greenshoe fully exercised, for a total of US$800 million. The notes carry a 2.25% coupon, mature in 2031, and offer an initial conversion price of approximately US$27.40 – well above the current share price. The offering was oversubscribed, reflecting strong institutional appetite, but the spectre of future dilution continues to weigh on near-term sentiment.
A simultaneous inclusion in the Russell 1000 and Russell 3000 indices on 29 June 2026 should have triggered passive fund inflows, yet the stock has continued to slide in the days since. Analysts point to the convertible overhang and a natural “buy the rumour, sell the fact” reaction to the production start as the most likely explanations for the weakness.
Almonty at a turning point? This analysis reveals what investors need to know now.
Net proceeds of roughly US$772.7 million from the convertible bond are earmarked for debt refinancing and balance sheet strengthening, a move that should provide financial stability as the company ramps output. The critical question for investors now is how quickly Sangdong’s milling operation can prove its reliability and start generating the revenue that Almonty has promised for years. With the US defense tungsten embargo less than six months away and China’s export controls showing no sign of easing, the strategic rationale remains intact – but the market is demanding evidence of execution before it re-rates the stock.
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