Almonty's Korean Milestone Arrives With a $300 Million Vote of Confidence
Published on 08/23/2026 at 04:20 | Redaktion boerse-global.de
The tungsten producer that spent years in construction mode has crossed the threshold into commercial reality. Almonty Industries formally began feeding stockpiled ore through its newly commissioned processing plant at Sangdong in South Korea's Gangwon province on July 1, marking the first production of saleable tungsten concentrate at the flagship asset.
The operational handover lands at a moment of unusual financial strength. Almonty closed the second quarter with roughly 1.23 billion Canadian dollars in cash — a figure that balloons to 1.23 billion US dollars when measured in the currency of its primary listing — after an oversubscribed bond placement in early June. That war chest now funds two ambitions simultaneously: the continued ramp-up at Sangdong and a freshly approved share repurchase program.
Buyback Program Signals Management's Valuation View
The board has authorized the buyback of up to 14.4 million common shares, representing roughly five percent of outstanding equity. The program runs from August 24, 2026 through August 24, 2029, with a ceiling of $300 million. Management framed the decision around a perceived disconnect between the market price and the underlying value of the company's tungsten reserves, pointing to demand from AI-adjacent applications as a key driver for expanding Sangdong's processing capacity.
The timing is notable. Insider sales have drawn attention over the past three months, with director Mark Trachuk selling 200,000 shares on July 2 at $24.07 each — grossing approximately $4.8 million and trimming his stake by 7.4 percent. Those transactions followed a sharp rally in the stock this year, fueled by rising tungsten prices and visible operational progress at Sangdong. The buyback, set against that backdrop, offers a counter-signal from management about where they believe the shares should trade.
A Quarter of Transformation
The numbers tell the story of a company in transition. Second-quarter revenue jumped 498 percent year over year to $43.0 million, while net income swung from a loss of $58.2 million to a gain of $181.8 million. Adjusted EBITDA reached $17.6 million.
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The earnings inflection owes much to the Panasqueira mine in Portugal, which carried the quarter while Sangdong's contribution remained modest. That mix is expected to shift meaningfully in the second half, as the Korean operation begins delivering in earnest. At the end of Q2, Almonty held roughly 139,700 tonnes of stockpiled ore grading about 0.25 percent tungsten oxide — feed that is now flowing through the new plant.
Contract Extension Locks In Long-Term Revenue
The commercial picture strengthened further in mid-July when Almonty amended its offtake agreement with Global Tungsten & Powders. The contract extension adds six years to the arrangement, bringing the total term to 21 years, while increasing contracted Phase-I volumes by 40 percent and improving price terms by approximately 6.3 percent. Management estimates the revised agreement will contribute at least $30 million in additional annual revenue.
Institutional Buyers Take Notice
The operational and financial momentum has not gone unnoticed among larger investors. Bank of America expanded its stake by 309.6 percent during the first quarter of 2026, now holding 908,911 shares. Cooper Creek Partners Management increased its position by 110.4 percent, while Encompass Capital Advisors added 47.9 percent.
Index inclusion has broadened the shareholder base further. Almonty joined the Russell 1000 and Russell 3000 indices at the end of June, a development that typically triggers passive buying and raises visibility among US institutional investors.
Regulatory Tailwinds and a Streamlined Listing
Washington is moving in a direction that favors non-Chinese tungsten producers. The US Commerce Department announced a one-year export ban on tungsten-bearing scrap and so-called "black mass" from lithium-ion batteries, effective August 27, aimed at shoring up domestic supply chains for critical minerals. The policy shift creates a more favorable operating environment for Western-aligned producers like Almonty.
The company has also streamlined its market footprint. Delisting from the TSX was completed on July 31, while the ASX listing ends September 1, with CHESS Depositary Interests suspended from trading on August 28. Almonty cited the significantly higher liquidity on the Nasdaq — where the bulk of trading volume now occurs under the ticker ALM — as the rationale. The Frankfurt listing under "ALI1" remains active.
The structural changes, the contract extension, and the production milestone combine to present a company that has completed its metamorphosis from developer to producer — with the balance sheet, the institutional backing, and the regulatory winds to match.
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