Fidelity Takes 6.5% Stake in Almonty as Tungsten Producer’s Turnaround Accelerates

The math looks contradictory. Almonty Industries just reported a revenue surge, launched its flagship South Korean mine, and attracted a $260 million cash injection from a major asset manager — yet the stock dropped nearly 9% on the Toronto exchange Wednesday to C$27.62. That sell-off came on the same day FMR LLC, the parent of Fidelity, disclosed it now controls roughly 6.5% of the tungsten producer’s shares. The pullback stands in sharp contrast to the year’s triple-digit gains, leaving the shares about 14% below their 52-week high.

Profitability Arrives After Years of Cash Burn

The underlying operational picture tells a different story. Almonty’s first-quarter 2026 revenue hit C$25.4 million, more than triple the prior-year figure, driven by soaring tungsten prices and steady output from its Portuguese Panasqueira mine. Adjusted EBITDA swung from a loss of several million dollars to a positive C$6.1 million. Operating cash flow flipped from negative C$4.4 million to roughly C$10 million, marking the company’s first sustained quarter of cash generation from operations.

The GAAP net loss of US$5.3 million reported in the quarter is almost entirely attributable to non-cash revaluation effects on warrants and derivatives — a paper charge triggered by the rising share price, not a reflection of underlying business health.

Should investors sell immediately? Or is it worth buying Almonty?

Sangdong: The Elephant in the Room

Almonty’s strategic center of gravity has shifted to South Korea. The Sangdong tungsten mine completed its first commissioning phase in mid-March, and management is now preparing for commercial ramp-up. At full capacity, Sangdong is expected to supply nearly 40% of global tungsten demand outside China — a critical statistic given that Beijing controls more than 80% of the world’s supply. CEO Lewis Black highlighted this dynamic during a presentation at the BofA conference in Miami, positioning Almonty as a key link in Western defense and technology supply chains.

The market is already reflecting that scarcity. Ammonium paratungstate prices hit a record high of roughly US$3,140 per metric ton unit in early May, underlining the supply deficit that analysts at D.A. Davidson and BofA Securities point to as justification for their bullish calls. D.A. Davidson lifted its price target for the NASDAQ-listed shares to US$25.00, while BofA set a target of US$23.00 and Zacks Investment Research upgraded the stock to a Rank 2 (“Buy”), placing it in the top 20% of covered names. Oppenheimer’s target stands at US$19.00.

Cash Position and Next Milestones

Almonty ended the quarter with roughly C$260 million in cash — enough to finance Sangdong’s ramp-up without additional raising. The recent relocation of the corporate headquarters to Dillon, Montana underscores management’s push to embed the company deeper into U.S. industrial and defense networks. Shareholders will vote on governance matters at the annual general meeting in Toronto on June 9, 2026, as Almonty transitions from developer to full-scale producer of critical raw materials.

With the Sangdong mine expected to meaningfully shift the global tungsten supply balance once it reaches nameplate capacity, Wednesday’s 9% dip may look like a buying opportunity for those willing to look past short-term noise. The Fidelity stake adds institutional credibility to a turnaround that is already showing up in the cash flow statement.

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Almonty Stock: New Analysis - 13 May

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