Almonty Industries has spent months telling investors it was building toward something big. The second-quarter numbers, released on August 11, show the tungsten producer has delivered on that promise — at least on the balance sheet side.
The company closed June with roughly C$1.2 billion in liquidity, a war chest assembled through an oversubscribed convertible bond deal that closed on June 9. The offering raised US$800 million gross, with net proceeds of approximately US$772.7 million flowing into corporate coffers. Investors were keen enough to trigger the full greenshoe option exercised by the underwriting syndicate.
A Convertible With a Built-In Brake
The bond, carrying a 2.25% coupon and maturing in 2031, came with a mechanism designed to limit shareholder dilution. Around US$83 million of the proceeds went into capped-call transactions with a cap price of US$41.36 per share — a 100% premium to the prevailing share price at the time. Standard provisions covering redemption, repurchase and default events are also embedded in the terms.
Management has earmarked the funds for working capital, general corporate purposes and, explicitly, potential acquisitions. The financing underpins the ramp-up of the Sangdong mine in South Korea and strengthens Almonty’s positioning as a Western supplier of tungsten for defense and high-tech applications, outside Chinese supply chains.
The Operating Story Is Catching Up
The liquidity isn’t purely a financing story. The Sangdong ramp-up is increasingly funding itself through operations.
Second-quarter revenue reached C$43.0 million, a 498% jump from C$7.2 million in the year-ago period. Sequentially, that represents a 69% gain over Q1’s C$25.4 million. The company points to higher tungsten prices — particularly for ammonium paratungstate (APT), a key intermediate product — as the primary driver.
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Profitability has followed suit. Adjusted EBITDA came in at C$17.6 million for the quarter, a sharp swing from the C$4.8 million loss posted in the same period last year.
Sangdong’s Milestone and a Reworked Supply Deal
The South Korean operation officially began processing stockpiled ore into saleable tungsten concentrate on July 1, 2026. Phase 1 is designed to reach an annual ore processing capacity of 640,000 tonnes, with a potential Phase 2 nearly doubling that to 1.2 million tonnes.
Alongside the capital raise, Almonty renegotiated its supply agreement with Global Tungsten & Powders (GTP), a subsidiary of the Plansee Group. The amended contract, finalized in July 2026, extends the term by six years, increases contracted volumes by 40%, and improves pricing across all contracted volumes by roughly 6.3%. That gives the company long-term revenue visibility at a time when tungsten demand is climbing across defense and electronics manufacturing — the metal is essential for armor, munitions and components.
Visibility, and Scrutiny
Capital markets visibility has improved as well. The stock joined the Russell 1000 and Russell 3000 indices on June 29, which should bolster institutional demand in North America. In August, Almonty filed a new shelf registration covering potential future equity issuances and an employee stock participation plan, tying management interests more closely to growth. The company is also evaluating a tungsten oxide facility in South Korea and project expansions in Montana and Portugal, operating from its new headquarters in Dillon, Montana.
Yet not everyone is convinced the pieces fit together seamlessly. TipRanks’ AI-driven analytics unit Spark rates the stock “Neutral,” citing weak profitability and continued capital consumption despite the strong revenue growth and improving gross margins. Some market observers caution that holding capital and deploying it wisely are two different disciplines — the dilution math may now be manageable, but the real test is whether Almonty puts this money to work effectively.
The Question Now
The balance sheet is robust. The forward-looking question is whether Almonty can convert its cash reserves and favorable tungsten prices into durable profitability as Sangdong moves toward full commercial operation. Investors will also watch whether the company deploys a portion of the bond proceeds — explicitly reserved for this purpose — toward strategic acquisitions.
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