Almonty's Q2 Numbers Mask a Deeper Story: The Real Earnings Are Finally Arriving
Published on 08/12/2026 at 22:20 | Redaktion boerse-global.de
Strip away the accounting noise and Almonty Industries' latest quarterly report shows a company that has crossed a genuine operational threshold. The tungsten producer posted net income of $181.8 million for the second quarter of 2026, a dramatic swing from the $58.2 million loss recorded in the same period a year earlier, while revenue surged 498% to $43.0 million.
But here's the catch: roughly $173.1 million of that headline profit came from non-cash revaluation gains. Adjusted EBITDA — the metric that filters out those bookkeeping effects — came in at $17.6 million, still a healthy improvement from the negative $4.8 million posted a year ago. Diluted earnings per share reached $0.62, versus a loss of $0.30 in the prior-year quarter.
The gap between the reported figure and the underlying operations matters for anyone trying to gauge how the Sangdong mine in South Korea is actually performing. The project, which began production at the end of June and is now in early commercial production, is transitioning from a development story into a revenue generator. That shift is visible in the adjusted numbers, even if the headline profit flatters the quarter.
Tungsten Prices at Record Levels Do the Heavy Lifting
The revenue explosion traces directly to the tungsten market. The European APT price stood at $3,075 per MTU during the quarter, compared with $453 per MTU in the same period last year — a more than sixfold increase that has transformed the economics of every tonne Almonty sells.
That pricing tailwind, combined with rising output from Sangdong, has strengthened Almonty's hand in contract negotiations. The company extended its offtake agreement with Global Tungsten & Powders by six years, boosting volumes by 40% and prices by 6.3%. At current market levels, the contract is expected to support annual revenue of up to $490 million — a staggering figure when set against the $43 million the company generated in the latest quarter, and a sign of how much headroom the contracted sales base offers.
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The extension also deepens Almonty's strategic positioning. CEO Lewis Black has framed the company not merely as a mine operator but as a pillar of Western tungsten supply chains independent of China, which controls roughly 80% of global production. That geopolitical angle has become increasingly central to the investment case, particularly as Western governments look to secure critical mineral supplies.
An $800 Million War Chest Raises Questions Along With Capacity
Alongside the quarterly results, Almonty confirmed the closing of an $800 million convertible note offering carrying a 2.25% coupon and maturing in 2031. Including those proceeds, the company now holds approximately $1.23 billion in liquidity — a cushion that far exceeds what operating cash flow alone would support.
That financial firepower is intended to fund the continued expansion of Sangdong and potentially additional offtake arrangements. But the convertible structure has also introduced a new variable for shareholders: the prospect of future dilution. Market participants are already weighing the benefits of a fully funded growth pipeline against the eventual cost of conversion.
The company's cash position was reported at roughly C$1.2 billion as of June 30, and the balance sheet now offers substantial runway for the ramp-up phase.
A Crowded Short Position and Analyst Targets Point to Tension
The stock has attracted notable short interest, with short sellers holding around 6.6% of the free float — approximately 19 million shares — as of mid-July. That positioning, combined with analyst price targets ranging from roughly $16 to $22 against a recent share price of $13.70, has fueled speculation about potential short-squeeze dynamics.
For context, the first quarter of 2026 had already shown momentum: Almonty reported a loss per share of $0.02 on revenue of $25.40 million, beating consensus estimates of $22.99 million. The second-quarter revenue of $43 million landed within the $35 million to $50 million range analysts had projected ahead of the release.
The company's Portuguese operations at Panasqueira also contributed to the story, with first-quarter revenue climbing 221% to $25.4 million and EBITDA reaching $6.1 million.
The next quarterly report is scheduled for August 17, and the market will be watching whether the operational turnaround visible in the adjusted figures can sustain itself. The record tungsten prices that drove this quarter's performance may not persist indefinitely, but the contractual base Almonty has built — and the cash it now holds — provides a buffer that didn't exist a year ago. The real test is whether Sangdong can keep delivering as the pricing environment evolves.
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