Almonty's $300 Million Share Buyback Signals a New Chapter as Tungsten Cash Piles Up
Published on 08/25/2026 at 06:31 | Redaktion boerse-global.de
When a mining company that just raised $800 million through a convertible bond turns around and commits $300 million to buying back its own stock, the market tends to sit up and take notice. That is precisely the position Almonty Industries finds itself in this week.
The tungsten producer's board gave the green light on Monday to a repurchase program running through August 24, 2029, authorizing the acquisition of up to 14.4 million common shares — roughly 5 percent of the outstanding float — over a 36-month window.
A Balance Sheet Transformed
The buyback is only the most visible symptom of a deeper financial transformation. At the end of the second quarter, Almonty held approximately 1.23 billion Canadian dollars in cash, a dramatic leap from the 268.4 million Canadian dollars on the books at the close of 2025.
The catalyst was a heavily oversubscribed convertible note completed on June 9, carrying a 2.25 percent coupon and maturing in 2031. With the greenshoe option fully exercised, the placement funneled $800 million into the company's coffers — a war chest that has fundamentally altered the calculus around capital allocation.
Operating cash flow has also flipped into positive territory, reaching 31.6 million Canadian dollars in the first half of the year compared with an outflow of 14.9 million in the same period a year earlier.
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Management's rationale for the repurchase centers on a perceived disconnect between the share price and the underlying value of the company's tungsten assets, particularly with the Sangdong mine in South Korea ramping up toward full production. The buyback also serves a dual purpose: offsetting potential dilution from recent capital-raising activities, including shelf registrations of approximately $246.79 million filed in August, which cover an employee equity participation plan among other items.
Consolidating the Listing Structure
The buyback arrives amid a deliberate thinning of Almonty's exchange footprint. The company voluntarily delisted from the Toronto Stock Exchange at the close of trading on July 31, citing the fact that the vast majority of daily trading volume already flows through the Nasdaq.
The Australian exit follows a similar script. The ASX has approved the voluntary delisting, with trading in CHESS Depositary Interests — which had dwindled to just 0.80 percent of outstanding shares — set to be suspended at the close of business on August 28, ahead of a final delisting on September 1.
Going forward, investors will find Almonty under the ticker ALM on the Nasdaq and ALI1 in Frankfurt. The company's late-June inclusion in both the Russell 1000 and Russell 3000 indices underscores the growing liquidity profile of the U.S. listing.
Operational Momentum Builds
The financial firepower rests on an operating story that is rapidly maturing. Second-quarter revenue surged 498 percent year over year to 43.0 million Canadian dollars, while gross margin in the mining segment hit 60.7 percent. Adjusted EBITDA swung from negative 4.8 million to positive 17.6 million Canadian dollars.
The bottom line told a similarly encouraging story: net income of 181.8 million Canadian dollars, a sharp reversal from the 58.2 million Canadian dollar loss recorded in the prior-year quarter. That said, roughly 173.1 million Canadian dollars of the profit came from non-cash valuation gains tied to derivatives and warrants — a reminder that the headline figure flatters the underlying cash-generating capacity.
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Revenue during the quarter still flowed predominantly from the Panasqueira mine in Portugal, with Sangdong in its commissioning phase. In June, the Korean operation began processing stockpiled ore through its newly activated processing plant, with roughly 139,700 tonnes of ore grading about 0.25 percent tungsten oxide ready for treatment. Phase I of the project targets a throughput capacity of approximately 640,000 tonnes per year, which should yield around 2,300 tonnes of tungsten concentrate annually. A fully permitted Phase II would double that to 1.2 million tonnes.
Contract Wins and Insider Moves
On the commercial front, Almonty renegotiated its long-term offtake agreement with Global Tungsten & Powders, part of the Plansee Group, effective July 14. The revised terms extend the contract by six years, boost committed volumes by 40 percent, and improve pricing by roughly 6.3 percent — locking in predictable offtake for Sangdong's future output at more favorable conditions.
Not every signal from the corporate perimeter has been bullish, however. Insider Mark Trachuk sold approximately 200,000 shares in early July at around $16.97 apiece, marking the largest insider disposal in three months. Over the trailing twelve months, insiders have been net sellers to the tune of $6.4 million.
For now, the buyback stands as management's most emphatic statement of confidence — a bet that the market's valuation of its tungsten story has yet to catch up with the balance sheet reality.
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