Almonty's Record $800M Convertible Closes, Board Re-elected, as Sangdong Nears Production and Russell Entry Looms
11.06.2026 - 20:23:05 | boerse-global.de
Almonty Industries shares mounted a 6.53% recovery on Thursday, climbing to C$22.68 after a turbulent week that had wiped more than a fifth from the stock's value. The bounce came as investors digested the closure of the company's largest-ever capital raise — an $800 million convertible note offering that was oversubscribed and triggered full exercise of the $100 million overallotment option. Yet the stock remains roughly 32% below its April peak of C$33.35, and with annualized 30-day volatility hovering near 99%, the tungsten developer remains a high-risk story.
The 2.25% convertible notes, due 2031, generated net proceeds of roughly $772.7 million after discounts and commissions. To protect existing shareholders from future dilution, Almonty funneled $83 million into capped-call transactions. The conversion price is set at C$27.40, well above current trading levels, while the cap sits at around $41 — a mechanism designed to limit the cost of any eventual equity conversion. The deal's structure signals management's confidence that the share price has room to run before conversion becomes attractive.
Most of the fresh capital — about $543 million — has been earmarked for general corporate purposes and potential acquisitions, with the bulk flowing into the Sangdong tungsten mine in South Korea. A further $50 million will retire existing debt. Almonty plans to expand the mine's processing capacity to roughly 1.2 million tonnes of ore per year, effectively doubling current tungsten output. Commercial production at Sangdong is slated to begin in July, a milestone that would cement Almonty's ambition to become a reliable Western tungsten supplier outside China.
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Shareholders also gave management a clear vote of confidence at the annual meeting on June 9, re-electing all seven directors with strong majorities. The board's composition is strategically important: the retention of General Gustave F. Perna and Alan Estevez underscores Almonty's push into the US defense supply chain. Both bring Pentagon-level experience that bolsters the company's positioning as a critical minerals partner for the American military.
The next catalyst comes on June 29, when Almonty is expected to join the Russell 1000 and Russell 3000 indices. Inclusion will trigger automatic buying from index funds and likely raise the company's profile among institutional investors. Analysts at Bank of America and Cantor Fitzgerald are already recalibrating their models to reflect the new capital structure. On the Australian Securities Exchange, where Almonty also trades, shares closed at A$22.32 as relief over the secured financing filtered through the market. With a funded mine, a confirmed board, and index rebalancing on the horizon, Almonty has laid the groundwork for a defining second half of 2026 — but the speed at which Sangdong ramps up will determine whether the share price can reclaim its April highs.
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