Almonty Reports 221% Q1 Revenue Surge Fueled by Sangdong as $773M Convertible and Russell Entry Bolster Western Tungsten Strategy
13.06.2026 - 04:42:02 | boerse-global.de
Almonty Industries is firing on multiple cylinders after a turbulent stretch. The company’s flagship Sangdong mine in South Korea completed Phase 1 in March, and first operational data is expected this month, with full commercial production slated for July. Already the financial results are turning heads: first-quarter revenue for fiscal 2026 hit US$25.4 million, a 221% leap from the same period last year. The net loss narrowed to US$5.3 million, and operating cash flow swung positive to US$9.7 million — a clear sign that the ramp-up is gaining traction.
Phase 1 of Sangdong is designed to process roughly 640,000 tonnes of ore annually and produce about 2,300 tonnes of tungsten concentrate. Next year’s Phase 2 will double capacity to 1.2 million tonnes of ore and 4,600 tonnes of concentrate. At that level, Almonty estimates the mine could supply roughly 40% of the world’s tungsten output outside China — a crucial statistic given that Beijing now controls more than 80% of global production. Since February 2025, China has required export licenses for strategic minerals, and tungsten prices have more than quintupled. Meanwhile, the U.S. Department of Defense will ban Chinese-sourced tungsten from all American defense supply chains starting January 2027.
To fund this expansion, Almonty closed its largest-ever financing round on June 4. The company issued convertible notes worth US$700 million at a 2.25% coupon with a 2031 maturity, and the initial purchasers exercised a US$100 million greenshoe option. Net proceeds came to roughly US$772.7 million. The notes were oversubscribed by institutional investors, but the news initially spooked retail shareholders worried about dilution. Almonty plans to mitigate that risk through capped-call transactions, and the bulk of the proceeds will go toward debt refinancing and general corporate purposes.
The capital raise follows a resounding vote of confidence from shareholders at the June 9 annual general meeting in Dillon, Montana. Two retired U.S. generals — Gustave F. Perna and Alan Estevez — were re-elected to the board with over 99% of the votes cast, as were CEO Lewis Black and the other four directors. Accounting firm Zeifmans LLP also won approval by the same margin. The board’s deep ties to the Pentagon are no accident: Almonty’s strategy is to become the dominant Western supplier of tungsten, a metal critical for armor-piercing munitions, semiconductors, and cutting tools.
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On the management side, Jorge Beristain recently took over as chief financial officer, bringing experience from Ryerson Holding and other multi-billion-dollar industrial firms. His appointment dovetails with the company’s push to scale up operations and navigate capital markets complexity.
The stock has been staging a recovery after the convertible-related sell-off. Shares closed the week at C$24.80, up 4.2% on the day and 9.25% for the week — though still about 25% below the April high. The 50-day moving average at C$26.92 acts as near-term resistance, with the stock currently trading 7.86% below that line. Year to date, the shares have still gained roughly 106%.
A powerful technical catalyst arrives on June 29, when Almonty will be added to the Russell 1000 and Russell 3000 indexes. Exchange-traded funds and passive strategies that track these benchmarks will be forced to buy the stock, creating a wave of structural demand. That timing coincides with the first production data from Sangdong, giving the market a fresh operational readout.
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Analyst sentiment remains broadly bullish. Oppenheimer raised its price target on June 3 to US$25 from US$22 and reiterated an Outperform rating, citing tight supply and robust demand from the semiconductor and defense industries. B. Riley also backs the long-term case for Sangdong. The consensus among analysts tracked by the secondary source is a “Strong Buy” with an average price target of US$23.80.
With Sangdong set to hit full throttle in July, a newly fortified balance sheet, and a near-guaranteed influx of index-related buying, Almonty is positioned to capitalize on a geopolitical climate that is bending decisively in its favor.
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