Almonty Locks In Six More Years of Tungsten Sales as Sangdong Ramps Toward Full Output
Published on 08/12/2026 at 16:42 | Redaktion boerse-global.de
The tungsten market's supply squeeze is proving to be a seller's dream, and Almonty Industries is capitalizing with a freshly renegotiated offtake agreement that stretches well into the next decade. The Toronto-listed miner has extended its long-term contract with Global Tungsten & Powders (GTP), a subsidiary of Austria's Plansee Group, adding six years to the agreement while boosting contracted volumes by 40%. The revised terms, finalized in July 2026, also carry a roughly 6.3% price improvement across all committed tonnage — a combination that gives Almonty rare revenue visibility as its flagship South Korean asset works its way toward nameplate capacity.
The news landed alongside the company's second-quarter results on August 11, and the numbers tell a story of a business transitioning from development-stage risk to cash-generating producer. Net income for the quarter reached C$181.8 million, or C$0.64 per share, a dramatic swing from the year-ago period when the mining operation itself posted a C$0.9 million loss. This time around, the mining business contributed C$26.1 million to the bottom line.
A War Chest Built for Expansion
Almonty's balance sheet has rarely looked healthier. The company ended the quarter with C$1.2 billion in cash, bolstered by a heavily oversubscribed convertible bond offering that raised gross proceeds of US$800 million. The notes, which mature in 2031 and carry a 2.25% coupon, were so well received that investors exercised the full greenshoe option available to the underwriting syndicate. In a further sign of financial discipline, Almonty has since fully repaid its project term loan from KfW IPEX-Bank.
That capital is earmarked for two distinct purposes. The first is optimizing the ongoing Phase 1 production run at Sangdong, which officially began processing stockpiled ore into saleable tungsten concentrate on July 1, 2026. The second is preparing the groundwork for a potential Phase 2 expansion that would nearly double throughput capacity from 640,000 tonnes of ore per year to as much as 1.2 million tonnes.
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Index Inclusion and a New Corporate Home
Investor visibility has improved markedly in recent months. Since June 29, 2026, Almonty's shares have been part of both the Russell 1000 and the broader Russell 3000 indices, a development that should funnel institutional buying from North American fund managers who track those benchmarks. The company has also filed a new shelf registration covering potential future equity issuance, including an employee stock participation plan — a move designed to align management's interests more closely with shareholders as the company evaluates a tungsten oxide facility in South Korea and project expansions in Montana and Portugal.
The corporate headquarters has shifted to Dillon, Montana, putting Almonty closer to the Western industrial and defense supply chains it increasingly serves. That geographic repositioning is no accident. With geopolitical tensions over critical minerals intensifying, defense contractors and high-tech manufacturers are actively seeking tungsten sources that bypass Chinese control. Almonty is positioning itself as one of the leading suppliers of tungsten concentrate outside China, with Sangdong in South Korea, the Panasqueira mine in Portugal, and development projects in Spain and Montana rounding out the portfolio.
Pricing Power Reflects Market Tightness
The market backdrop could hardly be more favorable. The European average price for ammonium paratungstate, a key tungsten intermediate, hit US$3,075 per metric tonne unit in the second quarter — a staggering jump from US$453 in the same period last year. That pricing environment, combined with the extended GTP contract, provides Almonty with a solid revenue foundation as it pushes Sangdong toward full production.
A substantial drilling program is also underway at the adjacent Sangdong molybdenum project, aimed at confirming resources for potential future development. For now, though, the operational focus remains squarely on the Phase 1 ramp-up at the namesake mine, with the GTP deal securing the offtake for that initial stage well into the future. Should Phase 2 come to fruition, Almonty would have twice the capacity — and a contract structure that could be expanded to match.
