Almonty Launches $300 Million Buyback as Tungsten's Supply Squeeze Reshapes the Producer's Trajectory
Published on 08/24/2026 at 13:41 | Redaktion boerse-global.de
The Toronto-based tungsten producer's stock climbed 4.64 percent to $18.51 on the Nasdaq Monday as management began executing a repurchase program approved just days earlier. The buyback, authorized August 17 for up to $300 million over 36 months, targets as many as 14.4 million common shares — a signal that executives see a gap between the market's valuation and the worth of the company's tungsten assets, particularly as the Sangdong mine in South Korea ramps up.
The move extends a rally that has lifted the shares roughly 73 percent from a local trough, with gains touching 77 percent at one point, putting a fresh all-time high within reach.
A Balance Sheet Built for Buybacks
The scale of the repurchase program rests on a capital structure overhaul completed earlier this summer. Mid-June brought a heavily oversubscribed placement of convertible senior notes carrying a 2.25 percent coupon and maturing in 2031, generating gross proceeds of $800 million including full exercise of the greenshoe option. By June 30, cash on hand stood at $1.2 billion, a dramatic jump from the $268.4 million recorded at the end of 2025.
That financial firepower coincides with a sharp operational turnaround. Second-quarter revenue surged 498 percent year over year to C$43.0 million, up from C$7.2 million in the prior-year period and 69 percent above the first quarter. The mining segment swung to earnings of C$26.1 million from a C$0.9 million loss a year earlier, with gross margins hitting 60.7 percent.
Reported net income reached C$181.8 million against a net loss of C$58.2 million in the year-ago quarter — though roughly C$173.1 million of that figure stemmed from non-cash gains tied to the revaluation of derivatives and warrants. Operating cash flow has nonetheless turned positive, giving the buyback a foundation of real earnings rather than accounting adjustments alone.
Should investors sell immediately? Or is it worth buying Almonty?
Sangdong's Ascent and the Pricing Tailwind
The production ramp at Sangdong, which began processing ore in July, sits at the heart of the company's growth narrative. The operation remains in its initial commissioning phase, drawing on previously stockpiled material, meaning the full capacity build-out — and the associated revenue potential — lies ahead in coming quarters.
The timing looks fortuitous. Tungsten prices have climbed 622 percent between January 2025 and April 2026, propelled by China's tightening grip on supply. Beijing controls roughly 80 percent of global output and has restricted export licenses, with only 15 companies expected to hold export rights by 2026/27. The European APT price, a key benchmark, has soared to approximately $3,075 per MTU from around $453 a year earlier.
Adding to the squeeze, Japanese WF6 producers Kanto Denka and Central Glass halted operations July 1, removing roughly a quarter of the world's annual WF6 capacity of about 2,200 tonnes. WF6 prices have surged 70 to 90 percent in the second half of 2026. Global tungsten demand is projected to grow from 143,000 tonnes in 2025 to 210,000 tonnes by 2035, with structural supply deficits expected through at least 2028.
That backdrop positions Sangdong — one of the few major operations outside China — as a strategic supplier for Western buyers diversifying their supply chains. The company is also slated to appear at the Critical Minerals Expo North America in Atlanta in late October.
Institutional Appetite Meets Insider Selling
The second quarter saw notable accumulation by large asset managers. BlackRock, T. Rowe Price Associates and T. Rowe Price Investment Management each built positions worth tens of millions of dollars, part of a broader pattern in which 136 institutional investors increased their stakes while 76 trimmed.
Against that backdrop, director Mark Trachuk sold 200,000 common shares in early July at $24.070 per share, a transaction worth $4,814,000 that reduced his holding by 7.4 percent. The insider sale stands as a counterpoint to the predominantly positive institutional inflows, though it appears isolated rather than part of a broader exodus.
Almonty at a turning point? This analysis reveals what investors need to know now.
A Streamlined Listing Structure
The company is also consolidating its exchange presence. Canadian common shares were delisted from the Toronto Stock Exchange at the close of trading July 31, with Australian CHESS Depositary Interests set to follow from the ASX at the close of August 28 and expected delisting September 1. Once complete, Almonty will trade on the Nasdaq under "ALM" and in Frankfurt under "ALI1." The shares were added to the Russell 1000 and Russell 3000 indices at the end of June, reflecting the company's growing market capitalization and liquidity.
July also brought an expanded supply agreement with Global Tungsten & Powders LLC: a six-year extension, a 40 percent increase in contracted volumes and roughly 6.3 percent improved pricing terms.
For investors, the converging narratives are hard to ignore: a commodity market gripped by persistent supply constraints, a producer scaling capacity precisely as those constraints bite, and a management team willing to back its own valuation judgment with $300 million of shareholder capital.
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