Almonty Charts a New Course: $773M Cash Injection, Russell Index Entry, and Sangdong Ramp-Up Reshape Tungsten Supply Chain

Almonty rebounds 6.4% after convertible bond deal, board re-election, and Russell 1000 inclusion. Sangdong tungsten mine on track for July operations.

Almonty Industries has emerged from a turbulent week with a trio of events that collectively dispel the biggest uncertainties hanging over its stock. The shares rebounded 6.39% on Thursday to CAD 22.65, clawing back some ground after a 21% slide the prior week. That sell-off was largely triggered by the very same catalyst that now underpins the recovery: a massive convertible bond deal that simultaneously strengthens the balance sheet and dilutes existing holders.

The convertible notes, priced at a 2.25% coupon and maturing in 2031, raised a gross $800 million — $700 million in the initial placement plus a $100 million greenshoe option. After fees, net proceeds landed at approximately $773 million. Initial market fears over dilution proved short-lived: the conversion price sits roughly 32.5% above the closing price on June 4, implying a significant premium. To further blunt the impact on shareholders, management deployed $83 million into capped-call transactions with a cap price just above $41. Another $50 million will retire existing debt, while the lion’s share — well over half a billion dollars — is earmarked for the Sangdong tungsten mine in South Korea.

Investor sentiment also received a lift from the annual general meeting in Toronto, where all seven board members were confirmed without drama. Notably, the re-election of General Gustave F. Perna and Alan Estevez — both with deep ties to US defense procurement — underscores Almonty’s strategy to position itself as a secure tungsten supplier outside China. The reappointment of auditor Zeifmans LLP, though procedural, removes any lingering governance concerns.

The next transformative catalyst is already on the calendar. FTSE Russell’s preliminary list, published May 22, indicates Almonty will join the Russell 1000 and Russell 3000 indexes effective June 29. With roughly $12.2 trillion in assets benchmarked against those indices, index ETFs and funds will be forced buyers. Inclusion in the Russell 3000 automatically draws the stock into the large-cap Russell 1000 and its associated growth and value sub-indices.

Sangdong remains the core of the investment thesis. Historically one of the world’s richest tungsten deposits, the mine is on track to begin commercial operations in July. A planned Phase 2 expansion, targeting 2027, would double processing capacity to about 1.2 million tonnes of ore per year and push annual tungsten output to roughly 4,600 tonnes. At full tilt, Sangdong could meet nearly 40% of the world’s tungsten demand outside China — a strategic edge as Beijing tightens export controls and Washington expands procurement bans on Chinese material.

Despite the reassuring news flow, the stock still trades 32% below its April high of CAD 33.35, and year-to-date gains of 88% have been partially eroded. The relative strength index sits at 41, leaving room for further upside without entering overbought territory. Analysts at Bank of America and Cantor Fitzgerald are recalibrating their models to reflect the new capital structure, while on the Australian exchange — where Almonty also lists — the shares closed at A$22.32.

The next three weeks will test whether the combination of a clean balance sheet, a locked-in management team, and the imminent index entry can close the gap to those April highs. For a company betting its future on a mine that could reshape global tungsten supply, the pieces are finally falling into place.