Almonty's Sangdong Mine on Track for July Start as $800M Convertible and Russell Entry Cement Western Tungsten Strategy
11.06.2026 - 15:16:11 | boerse-global.de
Almonty Industries has quietly assembled a potent combination of catalysts that could reshape its trajectory in the span of a single month. With a freshly closed convertible note that swelled to $800 million after a greenshoe option, a scheduled entry into the Russell 1000 and 3000 indices on June 29, and the Sangdong mine in South Korea set to begin production in July, the tungsten producer is betting that operational execution will match the financial firepower.
The convertible offering, carrying a 2.25% coupon and maturing in 2031, was oversubscribed. Including the $100 million over-allotment, net proceeds land at approximately $773 million after fees. Almonty used $83 million of that to enter capped-call transactions designed to limit dilution for existing shareholders — the cap price sits at just over $41 per share. Another $50 million went to retiring existing debt. The bulk of the capital, more than half a billion dollars, is earmarked for the Sangdong project, with the remainder allocated to working capital and potential acquisitions. Analysts at Bank of America and Cantor Fitzgerald are now recalibrating their models to reflect the new capital structure.
The shareholder meeting on June 9 confirmed all seven board members with an overwhelming majority. Among the re-elected directors are General Gustave F. Perna and Alan Estevez, figures with deep ties to U.S. defense procurement. Their presence underscores Almonty’s strategic ambition to position itself as a reliable tungsten supplier outside China — a narrative that resonates as Western governments scour for alternatives in critical minerals. The auditor was also reaffirmed without dissent.
Should investors sell immediately? Or is it worth buying Almonty?
Index eligibility arrives on June 29, when Almonty joins both the Russell 1000 and Russell 3000. The automatic buying from index funds that follows should provide a mechanical tailwind, regardless of broader market sentiment. For a company that has long traded with the volatility of a junior developer, the upgrade in institutional visibility marks a significant maturation point.
On the operational front, Sangdong is finally ready to transition from a decades-old legacy site to a modern producer. The mine is scheduled to officially start production in July, completing a long ramp-up that has consumed years of development capital. Almonty’s share price closed at A$22.32 on the Australian exchange recently, reflecting cautious optimism but still well off the highs that some analysts see as achievable once cash flow begins to materialize.
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