Almonty Industries Stages a Comeback: Cash Flow Turns Positive as Index-Driven Selling Fades
Published on 08/07/2026 at 19:41 | Redaktion boerse-global.de
The tungsten producer that spent months in the crosshairs of forced index selling is now writing a different story. Almonty Industries has flipped to positive operating cash flow for the first time since commercial production began at its Sangdong mine in South Korea, and the market is taking notice.
The Numbers Behind the Turnaround
First-quarter figures released on May 11, 2026 show operating cash flow of $9.7 million — a dramatic swing from the negative $4.4 million recorded in the same period a year earlier. Revenue followed a similar trajectory, surging 221 percent year-over-year to $25.4 million.
The company still posted a net loss of $5.3 million, but that's a fraction of the $34.6 million shortfall from Q1 2025. The improvement tracks directly with the ramp-up at Sangdong, which is now processing an initial ore stockpile of roughly 139,700 tonnes, while the Panasqueira mine in Portugal continues to churn out steady production.
A Technical Storm That Has Passed
The share price story of recent weeks had little to do with operations and everything to do with index mechanics. When Almonty voluntarily delisted from the Toronto Stock Exchange on July 31, 2026, the move triggered automatic removal from several global benchmarks, including the FTSE Global Small Cap Index. Passive funds and ETFs were forced to shed positions regardless of the company's underlying performance.
That selling pressure has now largely run its course. Data from August 5 and 6 confirm the forced liquidation is mostly complete, and buyers have stepped back in. The stock gained 13.6 percent on August 4 to close at $12.56, followed by another 4.17 percent advance the next day. Over seven trading days, the recovery totals 13.94 percent.
$800 Million War Chest
While the share price was stabilizing, Almonty quietly secured its financial foundation. The company placed convertible notes worth $800 million in gross proceeds — above the initially planned $700 million, as investors fully exercised the overallotment option.
The terms are notable: a 2.25 percent annual coupon, maturity in 2031, and a conversion price of approximately $27.40 per share, sitting well above the current trading level. The capital is earmarked for expanding the Sangdong operation, with a portion reserved for potential downstream processing facilities, including a tungsten oxide plant.
A Strategic Pivot With Geopolitical Tailwinds
The optimism surrounding Almonty extends beyond its balance sheet. The company is completing a deliberate restructuring that consolidates its primary listing on the Nasdaq Capital Market, with the Australian Securities Exchange delisting expected to be finalized by September 1, 2026. Headquarters are relocating to Dillon, Montana, and liquidity is expected to concentrate around the US listing.
The timing aligns with a broader shift in Western supply chains. The United States is preparing an import ban on Chinese tungsten for defense procurement, slated to take effect in 2027. Almonty is positioning itself as an alternative supplier for the defense industry and semiconductor manufacturers seeking to reduce dependence on Chinese sources.
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What Analysts Are Saying
The transition from mine developer to active industrial producer has not gone unnoticed. DA Davidson raised its price target to $33, citing the company's evolution into a producing operation. The broader analyst community remains constructive: 84 percent of the eleven analysts covering the stock rate it a "Buy" or "Strong Buy," with an average price target around $16.29.
The next catalyst arrives with the upcoming quarterly report, expected later in August 2026, which should bring updated operational details and a fresh financial outlook. For a company that has weathered both operational losses and index-driven selling, the path forward is beginning to look considerably clearer.
