Almonty Industries Flips to Positive Cash Flow as $800M Convertible Reshapes Its Balance Sheet
Published on 08/06/2026 at 07:42 | Redaktion boerse-global.de
The tungsten producer that spent years selling a story of future output has quietly crossed into a new phase of its corporate life. Almonty Industries is no longer just a development-stage miner with ambitious plans for South Korea — it is now generating cash from operations, carrying a freshly fortified balance sheet, and executing a deliberate retreat from secondary stock exchanges.
The Numbers Turn a Corner
The most consequential shift came with the company's first-quarter 2026 results, published in early August. Operating cash flow swung to a positive $9.7 million, a sharp reversal from the negative $4.4 million recorded in the same period a year earlier. Revenue more than tripled to $25.4 million, a 221 percent jump year over year, propelled by the ramp-up at Sangdong and steady output from the Panasqueira mine in Portugal.
Almonty remains unprofitable, but the red ink is thinning dramatically. The net loss for the quarter came in at $5.3 million, compared with a $34.6 million shortfall in the first quarter of 2025. On a trailing twelve-month basis, the company posted revenue of C$50.01 million against a net loss of C$132.56 million, with the market capitalization on its Canadian listing pegged at roughly C$4.401 billion.
A Convertible That Got Away From the Original Plan
Alongside the earnings release, Almonty closed a convertible bond offering that ended up considerably larger than initially envisioned. The company had targeted $700 million but exercised the full greenshoe option with its syndicate of banks, pushing the final size to $800 million. The notes carry a 2.25 percent coupon and mature in 2031. After fees and expenses, Almonty nets approximately $772.7 million.
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Management plans to deploy the proceeds across several fronts: refinancing existing debt, funding working capital for the Sangdong operation as it moves toward full production, and purchasing capped-call transactions designed to limit dilution for existing shareholders when the bonds eventually convert. The offering was oversubscribed, a signal that institutional appetite for tungsten exposure remains robust.
Sangdong's Production Machine Kicks In
The operational milestone that set this chain of events in motion came earlier this week, when Almonty began producing saleable tungsten concentrate at Sangdong for the first time. The mine restarted operations on July 1, 2026, and Phase 1 of the processing plant is currently handling roughly 640,000 tonnes of ore annually, expected to yield around 2,300 tonnes of high-grade tungsten concentrate per year.
The operation is drawing on an ore stockpile of approximately 139,700 tonnes, whose gross value at current market prices is estimated at about $68 million. Phase 2, planned for 2027, would double processing capacity to 1.2 million tonnes of ore per year.
The market took notice. Shares climbed 13.6 percent on the news, with trading on the Toronto Stock Exchange ranging between roughly US$12.85 and US$13.25. The stock now sits near US$13.12, giving Almonty a market capitalization of approximately $3.72 billion.
The Listing Consolidation Accelerates
Almonty has been methodically pruning its exchange footprint. On July 31, 2026, the company voluntarily delisted from the Toronto Stock Exchange, concentrating trading liquidity on the Nasdaq Capital Market under the ticker ALM. A Frankfurt listing remains in place. The move triggered some technical selling pressure at the end of July as passive funds adjusted their positions, but the stock showed signs of recovery in the first week of August, supported by the improved cash flow figures and the strengthened balance sheet.
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The company is also preparing to exit the Australian Securities Exchange, part of a broader effort to reduce administrative and regulatory costs. The Russell reconstitution for 2026 is expected to add Almonty to both the Russell 1000 and Russell 3000 indices, which could bring additional passive buying interest.
What Analysts See Ahead
Wall Street has grown increasingly constructive. Nine analysts assign a consensus "Strong Buy" rating with a twelve-month price target of $23.71, implying upside of more than 27 percent from current levels. Oppenheimer's Ian Zaffino recently lifted his target from $22 to $25 while reaffirming an "Outperform" rating.
The earnings trajectory is expected to improve sharply, with analysts modeling a 300 percent year-over-year profit jump. That optimism rests on Sangdong reaching its full production potential and tungsten prices holding firm — a bet the convertible market appears willing to underwrite at scale.
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