Almonty Puts $300 Million Behind Its Tungsten Thesis as Shares Slide
Published on 08/24/2026 at 18:51 | Redaktion boerse-global.de
Tungsten producer Almonty Industries has formally activated its 2026 share repurchase program, authorizing the buyback of up to 14.4 million common shares — roughly 5 percent of outstanding equity — with a ceiling of $300 million. The program runs through August 24, 2029.
The board's rationale, first approved on August 17, centers on a conviction that the market is underpricing the company's strategic tungsten assets. That argument carries added weight given the stock's roughly 21.3 percent decline since early August, a slide that followed the completion of a major refinancing.
A Summer of Structural Change
The buyback lands amid a deliberate consolidation of Almonty's listing structure. Trading in the company's CHESS Depositary Interests on the Australian Securities Exchange will cease on August 28, 2026, with formal delisting effective September 1. The move follows the removal of its Canadian common shares from the Toronto Stock Exchange at the close of trading on July 31. Once both steps are complete, Almonty will trade on the Nasdaq under "ALM" and in Frankfurt under "ALI1."
For ASX-based holders, the timeline creates immediate logistical pressure: positions must be managed within days, not weeks.
The corporate reshuffling comes on the heels of a transformative stretch on the balance sheet. In mid-June, Almonty closed an oversubscribed placement of 2.25 percent convertible senior notes due 2031, raising gross proceeds of $800 million including full exercise of the greenshoe option. That capital allowed the company to fully repay its KfW term loan, confirmed in early August. Cash and equivalents stood at $1.2 billion as of June 30, versus $268.4 million at the end of 2025.
Should investors sell immediately? Or is it worth buying Almonty?
Numbers That Tell Two Stories
The second-quarter results, published August 11, underscore the operational momentum. Revenue hit C$43.0 million, a 498 percent jump from C$7.2 million in the prior-year quarter and 69 percent above Q1. The catalyst: European ammonium paratungstate prices surged to roughly $3,075 per MTU from about $453 per MTU a year earlier.
Mining segment earnings reached C$26.1 million, reversing a C$0.9 million loss, with mining gross margin at 60.7 percent.
The headline net income of C$181.8 million — versus a C$58.2 million net loss a year earlier — requires careful reading, however. Approximately C$173.1 million of that figure came from non-cash gains on the revaluation of derivatives and warrants. Strip those out, and the underlying earnings picture is more modest than the top-line number suggests.
Institutional Demand Meets Insider Selling
The shareholder register tells a nuanced story. During Q2, 136 institutional investors increased their positions while 76 trimmed. Notable buyers included BlackRock, T. Rowe Price Associates, and T. Rowe Price Investment Management, each accumulating stakes worth tens of millions of dollars. A Schedule 13G/A amendment filed August 7, a routine disclosure of passive holdings, pointed to continued institutional engagement.
Offsetting that enthusiasm: director Mark Trachuk sold 200,000 shares in early July at $24.070 per share, a $4.81 million transaction that reduced his stake by 7.4 percent. Insider sales of this kind are common enough, but they sit in tension with the board's stated view that the stock is undervalued.
Supply Dynamics and the Sangdong Factor
The buyback thesis rests partly on the ramp-up of the Sangdong mine, whose processing capacity is increasingly geared toward demand tied to AI applications. In July, Almonty extended its supply agreement with Global Tungsten & Powders LLC by six years, increased contracted volumes by 40 percent, and improved pricing terms by roughly 6.3 percent.
The company's inclusion in the Russell 1000 and Russell 3000 indices at the end of June reflects its growing market capitalization and liquidity — a prerequisite, perhaps, for a buyback of this scale.
Whether the market ultimately validates the board's assessment of tungsten asset values will become clearer in the weeks ahead, particularly as the Nasdaq becomes the primary venue for price discovery. For now, Almonty has put $300 million of its own capital behind that conviction.
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