Almonty Secures $800M Convertible and Russell Entry, but Board Vote Exposes Deep Shareholder Unease
10.06.2026 - 16:45:54 | boerse-global.de
Almonty Industries compressed months of strategic progress into a single week. The tungsten producer closed a heavily oversubscribed convertible note worth $800 million on June 9, locked in a Russell 1000 inclusion from June 29, and simultaneously re-elected its board — though that last item came with a sting.
The $700 million principal note, fully upsized with a $100 million overallotment, left Almonty with net proceeds of roughly $772.7 million. The bonds carry a 2.25% coupon, run until July 2031, and convert at $27.40 per share — a 32.5% premium over the June 4 closing price of $20.68. Interest payments begin on January 1, 2027. To shield existing holders from excessive dilution, the company poured roughly $50 million into capped-call transactions.
About half a billion dollars of the fresh capital will go toward operating cash, potential acquisitions, and general corporate purposes. Another $50 million refinances existing debt. The rest — net of fees — sits on the balance sheet, swelling Almonty’s cash pile to 259.9 million Canadian dollars as of the end of March, alongside first-quarter revenue that jumped 221% to 25.4 million Canadian dollars on the back of stronger APT tungsten prices and output from the Panasqueira mine.
Passive inflows loom large
Joining the Russell 1000 and the Russell 3000 on June 29 is no mere badge. With about $12.2 trillion in assets benchmarked against those indices, index-tracking funds have no choice but to buy Almonty’s shares. Many institutional portfolios could not hold the stock before; now they must. The timing aligns neatly with the U.S. Department of Defense’s DFARS rule, which from January 1, 2027, will ban Chinese tungsten from defense supply chains. Almonty’s Sangdong mine in South Korea is on track to supply more than 80% of the world’s tungsten outside China once it reaches full capacity.
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A shareholder rebuke inside the boardroom
The company’s annual general meeting delivered a sharp contrast. All seven director nominees were formally elected — but five of them received far from ringing endorsements. General Gustave F. Perna and Alan Estevez sailed through with over 99% approval. The rest were left nursing bruises.
Mark Trachuk and Daniel D’Amato saw their support collapse to roughly 64% and 63%, respectively. David Hanick won barely seven out of ten votes. Lewis Black and Andrew Frazer both fell short of the 80% threshold. The message was unambiguous: a significant minority of shareholders want changes in the boardroom composition and strategy.
Management acknowledged the growing pressure. Almonty has been pivoting aggressively toward U.S. capital markets and positioning itself as a critical-minerals supplier to the Pentagon. The board itself noted that it intends to sharpen its competence profile and diversity to match that westward shift. Committees are the most likely first target for reshuffling.
Almonty at a turning point? This analysis reveals what investors need to know now.
Trading volatility remains extreme
The stock’s price action reflects the tension between the bullish fundamentals and the governance unease. Shares settled at 21.53 Canadian dollars on the day of the vote, down about 3% from the prior close. That is a long way from the April high of 33.35 Canadian dollars. Over twelve months, however, the stock is still up a staggering 344%, and its annualized volatility sits above 100%.
With the Russell reconstitution, a fully funded convertible, and a hard regulatory deadline all converging in the second half of 2026, Almonty has an unusually dense catalyst calendar. Whether the boardroom can match that external momentum will be the question for the next few quarters.
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