Almonty Shareholders Overwhelmingly Back Defense Strategy as $800M Convertible Deal Closes
12.06.2026 - 21:44:05 | boerse-global.de
In a clear endorsement of Almonty Industries’ pivot towards the defence sector, two retired US generals each secured over 99% of shareholder votes at the company’s annual general meeting. The strong support for Gustave F. Perna and Alan Estevez came as the tungsten producer wrapped up an oversubscribed $800 million convertible bond offering, cementing its position as the West’s primary alternative to Chinese tungsten supply.
The five-year convertible notes carry a 2.25% coupon, mature in 2031, and include a fully exercised $100 million greenshoe option. To counter dilution fears—a key concern ahead of the deal—management put in place capped-call transactions that activate at a share price of $41.36. On Friday morning, the stock changed hands at €14.76 in European trading, while in Canada it closed at C$24.80, up roughly 4% on the session.
Proceeds from the bond are earmarked for the ramp-up of Almonty’s flagship Sangdong mine in South Korea, which began commercial production in March 2026. The operation is widely regarded as a cornerstone for securing western supply chains in critical minerals, particularly after recent Chinese export restrictions tightened global tungsten availability.
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The financial injection arrives alongside a bumper first-quarter earnings report. Revenue surged 221% year-on-year to $25.4 million, pushing operating profit to $6.1 million and generating positive operating cash flow of $9.7 million. Despite the top-line boom, the company posted a net loss of C$5.26 million. It ended March with nearly $260 million in cash on its balance sheet, giving it ample liquidity to fund the mine’s expansion.
The board elections provided a snapshot of investor sentiment. CEO Lewis Black received roughly 79% of the votes, while directors Daniel D’Amato and Mark Trachuk each secured just over 60%. The overwhelming mandate for the two generals, however, underscores the market’s appetite for Almonty’s military-led strategy. The company last year relocated its headquarters to Montana, deepening ties with US defence procurement.
Almonty’s shares have more than doubled since the start of the year, and the next catalyst is already on the calendar: on 29 June 2026, the stock is set to join a new index, a move expected to attract institutional buying and improve share liquidity. For now, all eyes remain on the steady increase in output from Sangdong as the company works to deliver its production targets on schedule.
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