Almonty’s $773M Convertible Closes Oversubscribed as June Index Inclusion Triggers Passive Buying
13.06.2026 - 11:01:01 | boerse-global.de
Almonty Industries has a date circled on the calendar: 29 June 2026. That day the tungsten miner gets admitted to a major stock index, forcing dozens of passive funds to automatically pile into the shares. The event alone could give the stock a fresh layer of support, coming on the heels of a blockbuster financing that netted the company roughly US$773 million.
The convertible note placement closed on 9 June and was oversubscribed. Almonty issued US$800 million in principal amount of senior secured convertible notes due July 2031, carrying a 2.25% coupon. After underwriting fees and expenses, the company pocketed about US$772.7 million. The conversion price was set at US$27.40 per share, a 32.5% premium over the closing price on 4 June. To limit dilution for existing holders, Almonty spent US$83 million of the proceeds on capped-call transactions, capping the effective conversion price at US$41.36 per share — a 100% premium to the reference price.
The bulk of the fresh capital will go toward ramping up the Sangdong mine in South Korea, Almonty’s flagship project. The company is positioning itself as a leading non-Chinese supplier of tungsten, a metal classified as critical for defence and advanced technology. Western arms makers and electronics groups have been scrambling to reduce reliance on Chinese supply chains, and Sangdong is designed to capture that shift. The remaining funds will be used for general working capital and potential acquisitions.
Should investors sell immediately? Or is it worth buying Almonty?
The announcement of the convertible in early June initially spooked the market. Shares tumbled more than 21% in a single session as some investors fretted over the debt terms. But sentiment quickly turned. Over the latest full week, the stock gained 9% to close at C$24.75 on Friday, while a week earlier it had ended at C$24.80. The long-term trajectory remains strong: Almonty has more than doubled year to date (up roughly 106%) and has surged about 428% over the past twelve months, hovering comfortably above its 200-day moving average.
Despite the share-price rally, the company is still losing money. Almonty booked a net loss of approximately US$132 million over the trailing twelve months. The new liquidity, however, ensures the path to full production at Sangdong is funded. Operational progress at the mine will be the next catalyst — once regular output begins, the market can judge whether the capital is delivering on expectations.
The technical picture is neutral for now. The relative strength index sits at 47.5, suggesting the recent rebound has not yet pushed the stock into overbought territory. Analyst price targets currently stand at C$25.00, meaning the stock is trading practically at fair value. The all-time high of C$33.35, reached in April 2026, remains about 26% above Friday’s close, leaving room for upside if Sangdong execution trims the deficit and the index inclusion sparks forced buying.
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