Almonty Raises $800M to Scale Tungsten Output as Shares Pause After Rally
13.06.2026 - 16:45:45 | boerse-global.de
Almonty Industries has closed one of the largest financing rounds in its history, pulling in US$800 million through an oversubscribed convertible note placement that saw the overallotment option exercised in full. The market responded with a weekly gain of more than 9%, pushing the stock to C$24.80 on Friday, June 13. Yet beneath that positive price action, the technical picture tells a more tempered story.
The private placement involved convertible senior notes carrying a 2.25% coupon and maturing in July 2031. The conversion price was set at US$27.40 per share, a 32.5% premium over the June 4 closing price. To limit shareholder dilution upon conversion, Almonty allocated roughly US$83 million to capped-call transactions with a cap price of US$41.36, representing a 100% premium over the reference price. After transaction costs, the company netted approximately US$772.7 million.
Proceeds are earmarked primarily for the expansion of Almonty’s flagship Sangdong mine in South Korea, with the remainder slated for working capital and potential acquisitions. The company is positioning itself as a leading tungsten supplier outside China, targeting Western defence and technology clients eager to diversify supply chains. Tungsten’s classification as a strategic critical mineral adds urgency to the effort.
Should investors sell immediately? Or is it worth buying Almonty?
For all the bullishness of the financing, the stock has struggled to reclaim previous highs. The current price sits about 26% below the April peak of C$33.35. During the most recent trading week, the shares slipped below the 50-day moving average, which sits at C$26.92 – a breach that technical analysts consider a warning signal. The neutral RSI reading of 47.5 suggests the market is catching its breath rather than reversing direction.
Fundamentally, the company remains in the red. Almonty posted a first-quarter loss of C$0.02 per share on revenue of C$25.4 million. Still, analysts on average expect a modest profit for the full year, a forecast that helps underpin the roughly C$7 billion market capitalisation. Texas Capital upgraded the stock to a strong buy in April, betting on the Sangdong ramp-up.
The stock’s annualised volatility exceeds 100%, making it a wild ride even by junior mining standards. The long-term 200-day moving average at C$17.10 offers a distant safety net, but near-term support sits at the weekly low of C$23.65. A break below that level would put the 100-day moving average in play. With the current price hovering near the consensus analyst target of C$25.00, the next leg higher likely depends on tangible operational progress at Sangdong. The convertible has bought Almonty time and firepower – now the market wants to see production deliver.
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