Two Japanese chemical manufacturers, Kanto Denka and Central Glass, have announced they will halt production of tungsten hexafluoride (WF₆) by July 2026. Together they control roughly 25% of the global capacity for this gas, which is indispensable for fabricating chips below 7 nanometers, 3D NAND memory with over 200 layers, and high-bandwidth memory. The decision leaves customers such as Samsung, SK Hynix and TSMC scrambling for alternatives — and it throws a bright light on Almonty Industries, whose Sangdong complex in South Korea is rapidly emerging as a critical minerals hub for the West.
The reason behind the Japanese retreat is straightforward: 60% to 70% of WF₆ production costs come from ultra-high-purity tungsten powder, which Japan has sourced almost exclusively from China. Since Beijing tightened export controls at the start of 2026, those shipments have effectively dried up. Samsung has already shifted to molybdenum in some of its SSD NAND products, and SK Hynix is evaluating the metal for future high-layer NAND designs. That pivot places Sangdong’s molybdenum resource — located directly adjacent to its flagship tungsten mine — in a new strategic context.
Almonty has been quick to capitalise. On June 16 it released a formal update on its molybdenum drilling campaign at the Sangdong complex. The program comprises 26 planned holes totalling about 12,000 metres, of which roughly 37% have been completed. Assay results so far align with historical grade data, reinforcing confidence in the deposit’s size and quality. Once all holes are evaluated, the company intends to begin extraction without delay.
South Korea’s domestic molybdenum inventories have fallen to critical levels, prompting the government to publicly urge private companies to secure alternative supply. Almonty already has an offtake agreement in place with SeAH M&S, the country’s largest molybdenum processor and the world’s second‑biggest molybdenum oxide smelter. The contract covers 100% of Sangdong’s molybdenum output at a floor price of $19.00 per pound. The spot price of molybdenum has climbed roughly 23.5% over the past year, adding further economic impetus.
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Behind this two‑metal strategy stands one of the largest financings in the critical minerals space. On June 9, 2026, Almonty closed an oversubscribed $800 million convertible bond issue, netting about $772.7 million. The note matures in July 2031, carries a 2.25% annual coupon, and is convertible at approximately $27.40 per share — a 32.5% premium over the June 4 reference close. Some $83 million of the proceeds will fund capped‑call transactions designed to limit dilution for existing shareholders; the remainder is earmarked for working capital, corporate purposes and potential acquisitions.
The operating turnaround is already visible in the numbers. First‑quarter 2026 revenue surged 221% to C$25.4 million, adjusted EBITDA swung from a loss of C$2.4 million a year earlier to a positive C$6.1 million, and cash on hand stood at C$259.9 million as of March 31. The share price has responded accordingly: it has more than doubled year‑to‑date and gained approximately 461% over twelve months, closing at C$26.67 on Friday. That leaves it about 20% below the 52‑week high of C$33.35 set in mid‑April. The relative strength index sits at 53 — not overheated — though the 30‑day annualised volatility of nearly 99% underscores the stock’s wild swings.
The next major catalyst arrives on June 29, when Almonty will be added to the Russell 1000 and Russell 3000 indices. Passive funds tracking those benchmarks must then rebalance, creating forced buying pressure in a stock that has only recently transitioned from project developer to producing mining company. Looking further ahead, from January 2027 the U.S. Department of Defense will be prohibited from purchasing Chinese tungsten. The United States has not commercially mined the metal since 2015, making Sangdong a de facto alternative for defence procurement, chip supply chains and Western raw‑material policy alike.
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