Almonty's Tungsten Windfall Comes With a Fine Print: The Real Catalyst Hasn't Hit the Books Yet
Published on 08/15/2026 at 16:02 | Redaktion boerse-global.de
The second quarter of 2026 will go down as the period when Almonty Industries finally cashed in on the tungsten supercycle — but the numbers tell only half the story. The Canadian-listed miner posted a 498% surge in revenue to C$43.0 million, propelled by European ammonium paratungstate prices that more than sextupled year-over-year to roughly US$3,075 per MTU from US$453. Yet the bulk of that haul came from a single, aging Portuguese asset. The company's marquee growth engine, the Sangdong mine in South Korea, was still in commissioning mode when the quarter closed.
That distinction matters. Diamond Equity Research, which published an update on August 14, was explicit: the figures reflect Panasqueira's contribution almost exclusively. Sangdong only transitioned to revenue-generating operations at the start of July, meaning the market has yet to see what the Korean project can do to the income statement. The analyst firm describes Almonty as standing at an inflection point — the price tailwinds are already blowing, the balance sheet is fortified, but the true test of the new capacity is still pending.
The Mechanics Behind the Headline Numbers
Digging into the income statement reveals why the profit figure demands context. Almonty swung to a net profit of C$181.8 million, or C$0.62 per diluted share, against a C$58.2 million loss in the prior-year quarter. But C$173.1 million of that gain was non-cash — mark-to-market revaluations on derivatives and warrants. The operating picture is cleaner when stripped of those accounting effects: mining profit flipped from a C$0.9 million loss to a C$26.1 million gain, with gross margins in the segment hitting 60.7%. Adjusted EBITDA turned positive at C$17.6 million, reversing a C$4.8 million deficit.
The cash flow statement tells a similarly encouraging story. Operating cash flow for the first half reached C$31.6 million, a sharp reversal from the C$14.9 million outflow recorded a year earlier. That operational improvement, combined with a June bond placement, has transformed the company's liquidity profile.
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A War Chest Built on a Convertible
The June financing deserves attention. Almonty placed a convertible bond carrying a 2.25% coupon and maturing in 2031. The offering was oversubscribed, and with the greenshoe fully exercised, gross proceeds reached US$800 million. The company now holds roughly C$1.23 billion in cash as of June 30, up from C$268.4 million at the end of 2025.
Management's stated intent is to run four projects concurrently rather than sequentially: Sangdong's Phase II expansion, a tungsten oxide facility in South Korea, the Gentung project in Montana, and an expansion at Panasqueira. The balance sheet now affords that luxury. Post-quarter, Almonty also used its improved liquidity to fully repay its KfW loan and extended its offtake agreement with Global Tungsten & Powders LLC — adding six years to the term, increasing volume by 40%, and securing a 6.3% price improvement.
There is, however, a caveat attached to the convertible. If holders exercise their conversion rights, existing shareholders face dilution. If they don't, the company carries ongoing interest obligations. Neither outcome is catastrophic, but both merit investor attention.
Streamlining the Listing Footprint
While operations accelerate, Almonty is consolidating its public market presence. The company voluntarily delisted from the Toronto Stock Exchange at the close of trading on July 31, 2026. The Australian Securities Exchange has approved the corresponding delisting under Rule 17.11, effective September 1, with CHESS Depositary Interests suspended from trading on August 28.
The rationale is straightforward: liquidity has migrated. The vast majority of daily trading volume now flows through the Nasdaq, where the stock trades under "ALM." Frankfurt, under "ALI1," remains the secondary venue. The Australian CDIs represented just 0.80% of issued shares as of July 14, making the listing largely vestigial. The consolidation should concentrate order flow on the Nasdaq as the delisting processes conclude in early September.
Market Reaction and Technical Position
The stock's response to the earnings release was characteristically volatile. On August 13, shares traded around US$13.85, down 3.6% from the prior session. The next day brought a recovery, with the price ranging between US$14.00 and US$15.09 before closing at US$15.07 — 7.6% above the day's low. Analysts attribute the 8.3% intraday swing to improving profitability and stronger contract coverage. The final trading day of the week saw gains between 6.9% and 8.9%, with the stock closing in a US$14.81–US$15.09 range, coinciding with the market digesting results and the company's recent inclusion in the Russell 1000 and Russell 3000 indices.
Technically, the shares sit just below their 50-day moving average of US$15.17 and their 200-day average of US$16.82. Sell-side sentiment remains constructive, with a consensus "Buy" rating and an average price target near US$27 — roughly double the current level.
What Comes Next
The third quarter will provide the first meaningful read on Sangdong's contribution. The mine has officially entered revenue-generating operations, and investors are now watching how quickly commissioning translates into sales. The macro backdrop remains supportive: tungsten prices are at historic highs, and supply dynamics appear tight. Almonty's challenge is execution — converting a well-funded pipeline into sustained production growth without the accounting noise that flattered the latest report.
