Almonty Juggles Buybacks and New Issuance as Sangdong Shifts Into Production Mode
Published on 08/22/2026 at 12:23 | Redaktion boerse-global.de
The tungsten producer Almonty Industries is entering a defining stretch of its corporate life, with a production milestone in South Korea arriving in the same window as a $300 million share repurchase and a shelf registration that could dilute the very stock the company is buying back.
On Thursday, the company began feeding a 139,700-tonne ore stockpile grading 0.25 percent tungsten trioxide through the newly commissioned mill at its Sangdong mine. The move transitions the asset from a development project into an active producer, a shift that fundamentally changes how investors should value the business. Sangdong is regarded as one of the most significant tungsten deposits outside China, and the operational switch gives Almonty immediate revenue relevance it previously lacked.
The production start lands amid a flurry of capital structure moves that, on the surface, appear contradictory. The buyback program, approved last month and commencing Monday, August 24, authorizes the repurchase of up to 14.4 million shares — roughly 5 percent of issued capital — over a 36-month window. Management frames the buyback as a response to what it considers an undervalued share price, particularly given the Sangdong ramp-up and the company's broader tungsten asset base.
Just days earlier, on August 14, Almonty filed a shelf registration allowing for the issuance of new shares worth approximately $246.79 million, including an employee participation component. The company says this capital-raising capacity is earmarked for optimizing Sangdong Phase I, funding Phase II growth, and advancing the adjacent molybdenum project — expansion capital rather than operational funding.
Should investors sell immediately? Or is it worth buying Almonty?
The balance sheet supports both tracks. Following the oversubscribed $800 million convertible bond placement completed in late June, Almonty held C$1.23 billion in cash as of June 30. The convertible carries an initial conversion price of roughly $27.40 per share, capped at $41.36 through accompanying capped-call transactions. The company also fully repaid a €14.661 million loan from KfW IPEX-Bank about a month ago, a move that coincided with a 21.3 percent pullback in the share price.
The second-quarter results, released August 11, underscore the operational momentum. Revenue climbed to C$43.0 million, up 498 percent year over year and 69 percent sequentially, with mining operating margins at 60.7 percent. The headline net income of C$181.8 million, however, was largely driven by non-cash revaluation gains of roughly C$173.1 million on derivatives and warrants. Adjusted EBITDA reached C$17.6 million, and earnings per share of C$0.62 blew past the consensus estimate of C$0.10, though revenue came in slightly below the expected C$45.7 million.
The company has also been streamlining its market presence. After voluntarily delisting from the Toronto Stock Exchange in late July, Almonty will exit the Australian Securities Exchange on September 1, with trading in its CDIs suspended August 28. Going forward, shares will trade solely on the Nasdaq under the ticker ALM and in Frankfurt under ALI1. Management expects the consolidation to improve liquidity, with the buyback adding further demand support. The company's late-June inclusion in both the Russell 1000 and Russell 3000 indices has already boosted its visibility among US institutional investors.
Almonty has also strengthened its commercial position, extending its offtake agreement with Global Tungsten & Powders LLC to a 21-year term with contracted volumes increased by 40 percent.
For shareholders, the coming months present a complex picture: a company transitioning from developer to producer, flush with cash from the convertible issuance, returning capital through buybacks while simultaneously maintaining the option to issue new equity, and concentrating its trading liquidity on US markets. Whether the Sangdong ramp-up translates into sustained earnings growth will determine if these structural moves prove well-timed.
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