Almonty Unveils $300 Million Buyback as Tungsten Producer's Korean Ramp-Up Reshapes Its Market Profile
Published on 08/17/2026 at 16:50 | Redaktion boerse-global.de
Tungsten producer Almonty Industries is putting its money where its mouth is. The Nasdaq-listed company has authorized a share repurchase program of up to $300 million, covering roughly 14.4 million shares — about 5 percent of its outstanding equity — over a 36-month window beginning August 24, 2026.
CEO Lewis Black framed the buyback as a response to what he sees as an undervalued stock. The program can be executed through Nasdaq and other exchanges, potentially including Rule 10b5-1 plans that permit automated, pre-scheduled purchases. The move also carries a mechanical benefit: retiring shares reduces the float and can support earnings per share, provided the company's operational expansion stays on track.
The timing is no accident. Almonty is in the midst of a structural transformation on two fronts — operational and corporate. In July, the company's Sangdong mine in South Korea began ore processing, a milestone analysts have long flagged as pivotal for future tungsten output. Just weeks earlier, Almonty announced its voluntary exit from the Australian Securities Exchange, following a prior departure from the Toronto Stock Exchange. The Nasdaq listing, under the ticker "ALM," remains the primary venue, with Frankfurt-listed shares trading as "ALI1." Trading of Australian depositary interests concludes August 28, 2026, with the formal ASX delisting set for September 1.
The stock has been on a tear. Australian-listed shares jumped 10.02 percent on Monday, while the broader rally has seen the equity climb from roughly $13 to above $15 in a matter of sessions — a move of 9.53 percent over the weekend alone. Observers attribute the surge to the Sangdong production start and the pending listing consolidation, rather than a short-term spike. Chart watchers now eye resistance at $15.50 to $16.00, with a six-to-twelve-month target zone of $18 to $20.
Should investors sell immediately? Or is it worth buying Almonty?
The buyback announcement lands amid a wave of analyst enthusiasm. D.A. Davidson has reaffirmed its buy rating with a $33 price target, a level the bank recently raised from $25 following an expanded offtake agreement and a virtual roadshow with Black. Analyst Matt Summerville cited progress at Sangdong, a potential partnership with the U.S. government, a solid balance sheet, and record tungsten prices as key drivers.
The fundamentals are beginning to corroborate the optimism. Second-quarter 2026 revenue surged 498 percent year-over-year to C$43.0 million, up from C$7.2 million — growth fueled largely by elevated tungsten prices even before Sangdong's full ramp-up. The stock has gained 159 percent over the past twelve months and 67 percent year-to-date.
Yet the picture is not without tension. Almonty is transitioning from a narrative-driven story stock to an operating producer, but profitability remains negative. The company's margins are still deeply in the red, and the current valuation multiples leave little room for disappointment. The buyback program, while signaling management confidence, also carries financial commitments — though purchases are optional and need not be fully utilized.
The coming quarters will test whether the Sangdong ramp-up translates into cash flow and earnings. Ramp rates, unit costs, and the pace of margin improvement will be the metrics that matter most. For now, the combination of a de-risked production milestone, an upgraded price target, and a streamlined exchange structure has kept investor enthusiasm high — but the path to sustained profitability remains the ultimate arbiter of the stock's value.
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