Almonty Banks $773M from Oversubscribed Convertible as Capped Call Protects Shareholders from Dilution
13.06.2026 - 19:13:25 | boerse-global.de
Almonty Industries has closed a blockbuster financing that underscores the strategic importance of tungsten for western supply chains. The Canadian-listed miner raised $800 million through a private placement of convertible senior notes — a deal that was heavily oversubscribed, forcing the company to exercise the full overallotment option. After fees, roughly $772.7 million landed in Almonty's coffers.
The notes carry a 2.25% coupon and mature in July 2031. The conversion price is set at about $27.40 per share, a 32.5% premium over the June 4 closing price. To cap dilution for existing shareholders, Almonty used approximately $83 million of the proceeds to enter into capped call transactions, with a cap price of $41.36 — a full 100% above the reference price. That structure gives the company downside protection while limiting equity overhang if the stock rallies.
Sangdong Ramp-Up and Operational Turnaround
The bulk of the fresh capital will accelerate development of Almonty's flagship Sangdong mine in South Korea. Once fully expanded, the operation is expected to supply 40% of global tungsten demand outside China — a geostrategic selling point as western defense and technology firms scramble for non-Chinese sources.
The mine's potential is already reflected in Almonty's financials. First-quarter revenue surged 221% year over year to $25.4 million, driven by higher tungsten prices and strong output from the Panasqueira mine in Portugal. Adjusted operating profit swung to $6.1 million, confirming the company's shift from developer to producer.
Should investors sell immediately? Or is it worth buying Almonty?
Russell Index Entry Triggers Institutional Inflows
A second catalyst is just days away. On June 29, Almonty shares will be added to the Russell 1000 and Russell 3000 indices, a move that forces passive funds and ETFs to accumulate the stock. The company laid the groundwork earlier by relocating its headquarters to the United States and appointing a new CFO with Wall Street experience.
The market has taken notice. Almonty shares closed the week near CAD 24.75, up more than 9% for the period. The stock has more than doubled year to date — a gain of roughly 105% — and has soared about 429% over the past 12 months. Even after that rally, the shares trade roughly 26% below the April high of CAD 33.35, with the 200-day moving average at CAD 17.10 providing a solid floor.
Valuation Points to Near-Term Ceiling
Not all metrics scream upside. The relative strength index sits at 47.5, a neutral reading, and analysts peg a price target of CAD 25 — essentially in line with current levels. That suggests much of the convertible and index news is already priced in.
Almonty at a turning point? This analysis reveals what investors need to know now.
The next leg higher will depend on operational execution at Sangdong. As the mine transitions from construction to steady production, the market will judge whether the $773 million war chest is deployed efficiently. For now, Almonty has secured a strategic buffer — both on its balance sheet and on the global tungsten map.
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