Almonty's Stock Rebounds as $800M Convertible and Russell Index Entry Reset the Narrative
13.06.2026 - 06:13:38 | boerse-global.de
The tungsten market is watching Almonty Industries with renewed intensity. The Canadian miner has just closed a $800 million convertible note deal that was heavily oversubscribed, while a June 29 Russell index inclusion looms large. The twin catalysts have helped the stock recover from a sharp sell-off triggered by dilution fears, though it remains well below its all-time high.
Investors snapped up the convertible bonds at a 2.25% coupon, with the full $100 million overallotment option also exercised. After underwriting costs, Almonty pockets roughly $772.7 million in net proceeds. Some $83 million of that is set aside for capped-call transactions designed to limit dilution for existing shareholders if bondholders convert. The rest will fund working capital, general corporate needs, and potential acquisitions — with the Sangdong mine in South Korea the primary beneficiary.
Sangdong and the China factor
Almonty formally launched development at Sangdong in March, aiming to tap one of the world's largest and richest tungsten deposits. The timing aligns with Beijing's tightening export controls on strategic minerals. China supplies more than 80% of global tungsten, a metal critical for defense and industrial applications. Western arms buyers are actively seeking non-Chinese sources, and Almonty is positioning itself as the reliable alternative for the U.S. and its allies.
The capital infusion eliminates near-term refinancing pressure, giving the company free rein to push Sangdong into production. The next test will be on the ground, where execution must match the market's elevated expectations.
Should investors sell immediately? Or is it worth buying Almonty?
Index inclusion forces institutional buying
On June 29, Almonty joins the Russell indexes, a move that will trigger mandatory buying from index funds and ETFs that collectively manage trillions of dollars. This structural demand is already helping to absorb selling pressure that emerged when the convertible was first announced. Many investors initially panicked over potential dilution, sending the stock into a tailspin. That fear has since abated.
The stock closed the week at C$24.80, up 9% over the five sessions and rising 4.2% on Friday alone. Year to date, the shares have gained 106%, and over the past twelve months the rally extends to roughly 430%. Still, the price sits about 26% below the April 17 record of C$33.35, and it faces near-term resistance at the 50-day moving average of C$26.92.
Management reshuffle and shareholder confidence
To steer the growth phase, Almonty has appointed Jorge Beristain as chief financial officer. Beristain brings experience from Ryerson Holding and other multi-billion-dollar companies. The board also enjoys rock-solid backing: shareholders re-elected all seven directors at the recent annual meeting with more than 99% approval.
Almonty at a turning point? This analysis reveals what investors need to know now.
Analysts remain broadly bullish, assigning a consensus "Strong Buy" rating. Their average price target stands at C$23.80 — a figure that sits below the current share price, underscoring the volatility that still surrounds the stock.
For Almonty, the next few weeks will be pivotal. The Russell entry on June 29 provides a clear catalyst, but the stock must first prove it can break through the 50-day line. If Sangdong delivers on its promise, the multiples could expand further. For now, the company has the cash, the institutional tailwind, and the geopolitical tailwinds — execution is all that remains.
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