Russell Index Entry and $800M Convertible Deal Converge to Boost Almonty’s Tungsten Ambitions
13.06.2026 - 07:44:49 | boerse-global.de
Almonty Industries finds itself at an unusual crossroads where two powerful market forces are pulling in the same direction. On one side, the company has just closed an oversubscribed $800 million convertible bond issue that fills its war chest for the Sangdong mine ramp-up. On the other, the stock is about to be swept into the Russell indices on 29 June, forcing passive funds and ETFs to buy shares automatically. Together, these catalysts have already started to reverse the panic that gripped the stock after the convertible was first announced.
The convertible offering, completed on 9 June 2026, raised US$800 million in 2.25% senior secured convertible notes due July 2031. Underwriters fully exercised the overallotment option, leaving Almonty with net proceeds of roughly US$772.7 million after fees. Around US$83 million of that sum is earmarked for capped-call transactions designed to limit shareholder dilution should the notes be converted. The conversion price is set at US$27.40 per share, a 32.5% premium over the closing price on 4 June, while the cap on the call spreads sits at US$41.36 – a full 100% above the reference price.
The fresh capital is primarily destined for the Sangdong mine in South Korea, Almonty’s flagship tungsten project and the centerpiece of its strategy to become a dominant non-Chinese supplier of the critical metal. With China controlling more than 80% of global tungsten output and Beijing having recently tightened export restrictions, western defense and technology companies are scrambling for alternatives. Sangdong is positioned to fill that gap as production ramps up. The remainder of the funds will be used for general working capital and potential acquisitions.
Should investors sell immediately? Or is it worth buying Almonty?
Investors initially balked at the dilution risk posed by the convertible, sending the stock into a sharp slide. That sell-off has now faded. Almonty shares closed the week at C$24.80, chalking up a weekly gain of just over 9%. The year-to-date advance stands at roughly 106%, though the stock remains about 25% below its April high of C$33.35. The relative strength index sits at 47.5 – a neutral reading that suggests the latest rebound still has room to run.
Management is also reinforcing the corporate structure for the next growth phase. Jorge Beristain has been appointed chief financial officer, bringing experience from industrial giants such as Ryerson Holding. Meanwhile, shareholders gave the board a resounding vote of confidence at the annual general meeting, re-electing all seven directors with over 99% of the votes cast.
Technically, the 50-day moving average at C$26.92 now serves as near-term resistance. A clean break above that level in the run-up to the Russell reconstitution could validate the bullish narrative and set the stage for a test of the April peak. Analyst opinions are split between two camps: one sees a target of C$23.80 (implying a modest pullback), while another sets the bar at C$25.00, essentially where the stock currently trades. The broader consensus rating remains a “Strong Buy.”
The next decisive milestone is the Russell index inclusion on 29 June, after which the focus will shift squarely to Sangdong’s operational progress. If the mine delivers on its production targets, the combination of passive demand and strategic financing may prove to be the turning point Almonty has been working toward.
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