Almonty's Big-Bank Backing Grows 310% as Tungsten Producer Enters Its Cash-Generation Era
Published on 08/25/2026 at 04:51 | Redaktion boerse-global.de
Institutional investors have a habit of moving in packs, and the latest filings show a notable convergence on Almonty Industries. Bank of America Corp DE expanded its stake in the tungsten producer by 309.6 percent during the first quarter, lifting its position to 908,911 shares worth roughly $13.2 million. The buying wasn't confined to one house — Van Eck Associates Corp, Cooper Creek Partners Management LLC and Encompass Capital Advisors LLC all added to their holdings as well.
The timing is telling. Those accumulation decisions landed just as Almonty's flagship Sangdong mine in South Korea crossed the threshold into commercial production, with the newly completed mill already processing stockpiled ore. For a company sitting on a cash pile of 1.23 billion Canadian dollars at the end of the second quarter, that marks the pivot from construction-phase spending to revenue generation.
That war chest represents a dramatic transformation in the company's financial profile. At the end of 2025, Almonty held 268.4 million Canadian dollars in cash. The near-quintupling of that figure traces largely to an oversubscribed convertible bond offering of $800 million, carrying a 2.25 percent coupon and maturing in 2031, which closed on June 9.
The balance-sheet strength gave the board room to authorize a buyback of up to 14.4 million shares — approximately 5 percent of outstanding equity — to be executed over 36 months. Management framed the repurchase program, launched on a Monday and sized at $300 million, as a response to what it sees as a disconnect between the share price and the value of its tungsten assets, particularly with Sangdong still ramping up.
The operational numbers support that sense of momentum. Second-quarter revenue came in at 43.0 million Canadian dollars, up 498 percent from 7.2 million in the year-earlier period. Net income swung from a loss of 58.2 million Canadian dollars to a profit of 181.8 million. Adjusted EBITDA flipped from negative 4.8 million to positive 17.6 million Canadian dollars, while mining gross margin reached 60.7 percent.
Should investors sell immediately? Or is it worth buying Almonty?
Almonty has also been tidying up its listing structure. Shares were delisted from the Toronto Stock Exchange at the close of trading on July 31, with the company noting that the bulk of daily volume already flows through the Nasdaq. The Australian Securities Exchange has approved a voluntary delisting, with CDIs — representing just 0.80 percent of issued shares — set to be suspended at the close of trading on August 28 and fully delisted on September 1. Going forward, trading concentrates on the Nasdaq under the ticker ALM and in Frankfurt under ALI1.
On the commercial front, the company renegotiated its long-term offtake agreement with Global Tungsten & Powders, part of the Plansee Group, effective July 14. The contract extends by six years, committed volumes rise 40 percent, and pricing terms improve by roughly 6.3 percent — locking in offtake certainty for Sangdong's output at more favorable economics.
The mine itself remains in its commissioning phase. Phase I targets ore throughput of around 640,000 tonnes per year, with a fully permitted Phase II designed to double that capacity to 1.2 million tonnes annually.
Analyst commentary reflects a nuanced picture. GBC AG reaffirmed its buy recommendation on August 20 with a price target of $30 by end-2027, citing the Sangdong production start and exceptionally high tungsten APT prices. Diamond Equity, meanwhile, trimmed its 2026 earnings-per-share estimate on August 14 to $0.39 from $0.55 — an adjustment to near-term figures that left the overall positive consensus intact. Weiss Ratings upgraded the stock from "Sell (D-)" to "Hold (C-)" on August 12 following the quarterly release.
Insider activity tells a more mixed story. Over the past 24 months, insiders sold 80,600 shares worth 164,560 Canadian dollars, while Michael Lewis Black purchased shares totaling 108,520 Canadian dollars in the same window. More recently, insider Mark Trachuk sold roughly 200,000 shares in early July at about $16.97 each — the largest insider disposal in three months. Over the trailing twelve months, insiders were net sellers to the tune of $6.4 million.
The convergence of a fortified balance sheet, a landmark mine reaching commercial output, improved contract terms and fresh institutional buying paints a picture of a company in transition — one where the market's attention has shifted from construction milestones to the economics of steady-state production.
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