Almonty's Korean Mine Enters Production Phase as Buyback Looms and Institutions Circle
Published on 08/23/2026 at 16:51 | Redaktion boerse-global.de
The tungsten producer's transition from construction project to operating mine is gathering pace, and the market is starting to take notice. Almonty Industries has begun processing stockpiled ore at its Sangdong operation in South Korea's Gangwon province, a shift that analysts say fundamentally changes the investment case for the company.
The processing facility started working through ore deliveries that first arrived at the site back in December 2025, according to a research note published Thursday by GBC AG. That intervening period saw the company build up its inventory position — roughly 120,000 tonnes of ore grading 0.24 percent tungsten trioxide sat in stockpiles at the end of the first quarter of 2026, with a further 19,700 tonnes at a richer 0.35 percent grade added during the second quarter. The combined stockpile now stands at approximately 139,700 tonnes with a blended grade of around 0.25 percent.
GBC's analysts argue the operational milestone moves Almonty's risk profile away from construction and financing concerns toward measurable operating metrics. The firm reiterated a buy recommendation with a price target of $30 by the end of 2027.
The production ramp-up arrives alongside a markedly healthier balance sheet than the company carried a year ago. Second-quarter 2026 revenue came in at $43.0 million, a 498 percent jump year over year, while net income swung to $181.8 million from a $58.2 million loss in the comparable period. Record tungsten prices did much of the heavy lifting, according to Mining Weekly.
That financial firepower is now being deployed in the company's own stock. A buyback program approved by the board kicks off Monday, August 24, covering up to 14.4 million common shares — roughly five percent of the shares outstanding as of August 14. The company has earmarked up to $300 million for repurchases, with the program running through August 2029. Purchases will be executed on the Nasdaq or through alternative trading systems.
Should investors sell immediately? Or is it worth buying Almonty?
The timing is notable. The share price has slipped around 21.3 percent since Almonty fully repaid a KfW loan just over a month ago, and management's decision to launch a buyback at this juncture reads as a signal that they consider the equity undervalued.
Institutional investors have been moving in parallel. Second-quarter filings show BlackRock added roughly six million shares, an estimated investment of around $100.6 million, while T. Rowe Price Associates and its investment management arm each boosted their positions by more than five million shares, together worth nearly $178 million. On the other side of the ledger, Cooper Creek Partners exited its entire position of just under 4.8 million shares — a move analysts view as an idiosyncratic decision rather than a reflection of company fundamentals.
Some of this institutional interest likely stems from index mechanics. Almonty was added to the Russell 1000 and Russell 3000 indices in June, which typically triggers automatic buying from benchmark-tracking funds.
The company's capital position has also been reinforced. A convertible note offering of $800 million, carrying a 2.25 percent coupon and maturing in 2031, closed in June and was oversubscribed, leaving Almonty with roughly C$1.23 billion in cash at the end of the second quarter. A shelf registration of approximately $246.79 million has also been filed, which would permit future share issuances, including a component for employee equity compensation plans.
Structural changes are underway on the listing front as well. After delisting from the Toronto Stock Exchange at the end of July, the company's CHESS Depositary Interests on the Australian exchange will cease trading at the close on August 28, with a full ASX delisting expected on September 1. Trading focus increasingly shifts to the Nasdaq as the company's operational story centers on Sangdong's ramp-up.
GBC's note is the only analyst action on the stock within the past four weeks, and older price-target listings on financial portals should not be mistaken for current assessments. The convergence of a specialized research house, heavyweight institutional buyers, and index inclusion paints a picture of growing confidence in Almonty's tungsten story — even as the company's own management puts $300 million behind the same bet.
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