The stars are aligning for Almonty Industries, and the market is taking notice. On Thursday, shares surged 9.25% to close at 23.26 Canadian dollars, powered by a double catalyst that could reshape the tungsten producer’s trajectory for years. A historic convertible bond issuance has filled its treasury just as the company prepares to join the Russell 1000 Index — an event that will force passive fund managers to load up on the stock.
Almonty completed the sale of convertible notes on June 9, initially targeting $700 million in US currency. Strong demand pushed underwriters to exercise their full overallotment option, lifting the total to $800 million. The notes carry a 2.25% coupon and mature in July 2031. After fees and expenses, net proceeds are expected at roughly $772.7 million. Of that, about $83 million will fund capped-call transactions to limit dilution for existing shareholders when the notes are eventually converted, and roughly $50 million will refinance existing debt.
The cash injection arrives at a pivotal moment. Almonty’s Sangdong mine in South Korea began commercial operations in March 2026, and the ramp-up is already flowing through the financial statements. First-quarter revenue hit 25.4 million Canadian dollars — a 221% leap from the prior-year period. The operating cash flow turned positive at 9.7 million Canadian dollars. Although the profit margin remained slightly negative at minus 2.65%, that is expected to improve as Sangdong reaches full capacity. The net loss shrank dramatically to 5.3 million Canadian dollars from 34.6 million a year earlier, leaving Almonty with roughly 260 million Canadian dollars in cash and significant financial flexibility.
The board received a strong vote of confidence at Tuesday’s annual general meeting, with all directors re-elected. Shareholders particularly endorsed those with ties to the US defense sector — a smart bet given new Pentagon sourcing rules. Starting in January 2027, US defense contractors will be barred from buying tungsten from China or Russia. Beijing already controls more than 80% of global production and has required export licenses for the strategic metal since February 2025, a move that quintupled prices. Almonty has a binding monthly supply agreement with Tungsten Parts Wyoming for 40 tonnes of tungsten oxide, positioning it as a critical Western alternative.
Should investors sell immediately? Or is it worth buying Almonty?
The index promotion takes effect on June 29, when Almonty will join both the Russell 1000 and the Russell 3000. ETF providers must adjust their holdings to match the stock’s new weight in those benchmarks, creating a fresh base of institutional demand. This forced buying could provide a powerful tailwind in the weeks ahead.
Analysts are already betting on long-term gains. Oppenheimer raised its price target to 25 Canadian dollars in early June and maintained a buy rating. B. Riley also highlighted the potential of the Sangdong asset, which is expected to be one of the largest tungsten sources outside China.
The share price has had a bumpy ride. On a 12-month basis, it has surged roughly 93% from a 52-week low of 4.67 Canadian dollars. But the past 30 days have seen a 23% decline, and it still sits about 30% below its April high of 33.35 Canadian dollars. The relative strength index stands at 43.1, well below overbought territory, suggesting room for further upside. The next quarterly results are due on August 17, 2026, giving management time to demonstrate that Sangdong’s production ramp stays on schedule and that Almonty can cement its role as the West’s go-to tungsten supplier.
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