Almonty Sangdong Hits Production, but Profit-Taking and a Convertible Hangover Deepen the Slide
Published on 07/09/2026 at 07:08 | Redaktion boerse-global.de
Almonty Industries has flipped the switch at its flagship Sangdong tungsten mine in South Korea, yet the equity is tracing out a very different story. Shares closed at C$20.37 on Wednesday, shedding 5.5% in a single session and extending the weekly decline past 8%. The contradiction is stark: operational progress on the ground, bearish price action on the screen.
The current sell-off is not a repudiation of the mine’s potential. Rather, it reflects two technical overhangs colliding. First, Almonty’s promotion into the Russell 1000 and Russell 3000 at the end of June generated forced buying by passive funds. Once the index-rebalancing trades settled, profit-takers stepped in aggressively. Second, the company placed a US$800 million convertible bond in June, part of which is being used for hedging programs designed to limit dilution for existing holders. The note’s sheer size has created a psychological overhang, even if management has ring-fenced some of the proceeds to protect shareholders.
The market’s jitters are compounded by a net loss of US$5.3 million on revenue of US$25 million in the first quarter. But the red ink is entirely non-cash, stemming from the revaluation of financial instruments triggered by last year’s massive stock rally. Operating cash flows and liquidity remain untouched. Almonty’s balance sheet is further fortified by the convertible proceeds, giving it ample runway to complete the production ramp.
Should investors sell immediately? Or is it worth buying Almonty?
That ramp is now officially under way. On July 1, Almonty began processing ore at Sangdong, moving the asset from development to commercial production. An initial stockpile of roughly 140,000 tonnes will feed the mill’s commissioning, with the company targeting stable throughput before boosting feed grades in the next phase. The strategic timing is favourable: Western buyers are scrambling to reduce reliance on Chinese tungsten supply, and prices remain elevated.
Investor patience, however, is wearing thin. The stock has now slumped almost 39% from its 52-week high of C$33.35, though long-term holders are still sitting on a 184.5% one-year gain. The Relative Strength Index has fallen to 34, deep in oversold territory, while the 200-day moving average at C$18.55 offers a major support floor just below current levels. Analysts have kept a Buy rating on the stock, with a price target of C$25.
On the technical and fundamental fronts, the next few weeks will be telling. If Sangdong’s mill can convert its ore stockpile into saleable tungsten concentrate smoothly — the current inventory covers exactly 2.6 months of planned throughput — the negative headlines around convertible overhang and index-related selling should begin to fade. Until then, Almonty’s shares are caught between a milestone that matters and a market that cannot stop looking back.
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