Almonty's Sangdong Moves to Production as $700M Convertible and Strong Q1 Reshape Outlook
Published on 07/04/2026 at 15:34 | Redaktion boerse-global.de
The development-to-production transition at Almonty Industries' Sangdong mine comes on the heels of a dramatic financial turnaround. First-quarter 2026 revenue surged 221% to $25.4 million from $7.9 million a year earlier, while operating cash flow swung from negative $4.4 million to positive $9.7 million. Net losses shrank to $5.3 million from $34.6 million. Those numbers, released alongside news that the Korean tungsten asset finally began processing ore on June 29, paint a picture of a company that appears to have turned a corner.
The ore stockpile accumulated during the construction phase now stands at approximately 139,700 tonnes of run-of-mine material grading an average of 0.25% tungsten trioxide. At prevailing prices, that represents a gross value of roughly $68 million — enough to feed the first-stage processing facility for around 2.6 months. Almonty’s longer-term plan calls for a second expansion phase that would boost annual concentrate output to 4,600 tonnes, underpinned by long-term supply agreements with the United States and allied nations seeking alternatives to Chinese tungsten exports.
Capital Markets Open Wider
The production milestone arrived in the same week Almonty gained entry to two prominent U.S. equity benchmarks. The company was added to the Russell 1000 and Russell 3000 indices effective June 29, a move that forces passive index funds to mechanically buy the shares. That institutional tailwind has been reinforced by large stake increases from existing investors: Oxbow Advisors purchased shares worth roughly $3.76 million in the first quarter, Pictet Asset Management boosted its holding by 300.8%, and Mackenzie Financial raised its position by 59.1%.
Separately, Almonty closed an oversubscribed $700 million convertible note offering in the quarter, carrying a 2.25% coupon and maturing in 2031. Initial buyers also secured an option for an additional $100 million in notes. The company earmarked about $83 million of the net proceeds for capped-call transactions to limit dilution, roughly $50 million for refinancing existing debt, and the lion's share — around $543 million — for working capital, corporate purposes and potential acquisitions.
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The capital infusion landed on a balance sheet that already looked stronger: cash and cash equivalents stood at $259.9 million as of March 31, with working capital of $169.5 million. Full-year 2025 revenue reached $32.5 million, up 13% from $28.8 million the prior year.
Director Compensation and Governance Mechanics
A series of filings on the Australian Securities Exchange revealed that three Almonty directors — Daniel D'Amato, Gustave F. Perna and Mark Trachuk — received share-based compensation on July 1. D'Amato and Trachuk were awarded deferred share units, while Perna's restricted share units were converted into common stock, all without any cash outlay. The simultaneous timing across the board points to a routine compensation cycle rather than a discretionary event.
Technical Picture Cools After Searing Rally
Despite the positive news flow, the stock price has been in a consolidation phase. After hitting a 52-week high of C$33.35 on April 17, shares closed at C$23.14 on Friday, a 30.61% pullback from that peak. The daily move of +4% recouped some ground, but the month-to-date figure shows a 16.73% decline. The relative strength index sits at 43.4, indicating neither overbought nor oversold conditions — more a natural breather after a 245.89% run over the previous twelve months.
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The 200-day moving average of C$18.34 lies about 26% below the current price, confirming the long-term trend remains upward. But the gap to the 50-day average is sizable: the stock trades 11.33% below that level of C$26.10. Annualized 30-day volatility of 90.65% underscores how aggressively the shares react to headlines. From the 52-week low of C$4.70 set on July 29, 2025, the stock has roughly quadrupled.
Broader Implications for Western Tungsten Supply
Sangdong's ramp-up is being watched well beyond Almonty's shareholder base. The mine is one of the world's largest known tungsten deposits, and its ability to deliver consistent concentrate output will test whether Western high-tech and defense industries can meaningfully reduce reliance on Chinese supply chains. Exploration companies such as Adelayde Exploration, which has projects in New Brunswick, are also positioning for that gap. Several analysts currently rate Almonty shares a "Strong Buy," with a twelve-month consensus target of approximately C$27.46. Whether the merged catalysts of production, index inclusion and a fortified balance sheet can reignite the rally — or whether consolidation has further to run — will become clearer as the mill's first steady runs feed data into the market.
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