Almonty Industries: Sangdong’s Momentum Meets the Mechanics of a Market Overhaul

Almonty's stock falls 18% as delisting from TSX and ASX triggers selling pressure, overshadowing the start of tungsten production at Sangdong.

The first tungsten acid is flowing from Almonty Industries’ Sangdong mine in South Korea, yet the company’s stock has shed nearly a fifth of its value since production officially kicked off on July 1. For a miner making the leap from construction to commercial operations, that disconnect between operational progress and market reception is striking — but the explanation lies less in the quality of the asset and more in the messy mechanics of a company reshaping its entire trading footprint.

Almonty is in the process of pulling its shares from two stock exchanges. The Toronto Stock Exchange listing ends at the close of trading on Friday, July 31, 2026, a move management flagged in early July. The Australian Securities Exchange departure is following a similar path: the company received formal approval for removal from the official ASX list on July 23, trading in CHESS Depositary Interests will cease on August 28, and the final delisting takes effect September 1. The rationale is straightforward — maintaining multiple listings is expensive and administratively burdensome, and the Sydney-traded shares represented just 0.80 percent of total outstanding equity.

The company has branded this consolidation a “liquidity pivot,” with future trading concentrated on the Nasdaq and the Frankfurt Stock Exchange. But in the near term, the restructuring is generating selling pressure. Investors who cannot or will not hold shares on foreign exchanges often exit during such transitions, amplifying what is already an annualized volatility reading of roughly 81 percent.

The stock closed Monday at C$18.80, barely changed from the prior session but sitting just below its 200-day moving average of C$19.19. That line has become the technical battleground. The 14-day relative strength index stands at 38.8, edging toward oversold territory but not yet signaling a reversal. A sustained break below the 200-day mark would be a bearish signal that could draw further selling.

Over the past 30 days, the shares have fallen almost 18 percent. The trigger was the very news that should have been a catalyst: the start of processing at Sangdong. It was a textbook “sell the news” reaction, with investors who had already priced in the milestone taking profits once it was confirmed.

Yet the year-to-date picture remains robust — the stock is still up 55.76 percent since January.

Sangdong’s Strategic Calculus

Operationally, the company is moving deliberately. The Sangdong processing plant is currently working through a stockpile of roughly 139,700 tonnes of ore with a tungsten oxide grade of 0.25 percent. Management is using this lower-grade material to stabilize the process before transitioning to higher-grade underground reserves. That ramp-up from commissioning to consistent commercial throughput is rarely seamless, and any delays would push back the expected cash-flow inflection point in the second half of the year.

The long-term case for Almonty rests on a structural tightening in the tungsten market. China controls approximately 80 percent of global production, and starting in 2027, the United States will ban imports of Chinese tungsten for defense applications. Sangdong, which at full capacity could meet roughly 40 percent of non-Chinese demand, is positioned as a strategic alternative for Western supply chains.

That positioning is reinforced by a recently expanded and extended offtake agreement with Global Tungsten & Powders, a subsidiary of the Plansee Group. The 21-year contract covers 90 percent of Phase I production. Almonty is also planning a second expansion stage for 2027 that would double annual processing capacity to 1.2 million tonnes of ore.

Institutional Confidence Amid the Noise

Against the backdrop of delistings and technical weakness, at least one institutional investor has been adding exposure. According to SEC filings from July 28, Encompass Capital Advisors increased its stake materially in the first quarter of 2026, purchasing 1,392,806 additional shares to bring its total holdings to 4,300,839 — roughly 1.52 percent of the company at the end of that quarter.

That vote of confidence from a sophisticated investor stands in contrast to the near-term selling pressure from forced liquidations and profit-taking. The current market capitalization of approximately €3.32 billion reflects the market’s attempt to price a company that is simultaneously delivering on its operational promises and undergoing a structural overhaul of its shareholder base.

What Comes Next

The next clear milestone is the completion of the TSX delisting on July 31, which will clear the way for the simplified trading structure on Nasdaq and Frankfurt. Whether the stock can reclaim the C$19.19 moving average in the weeks ahead will depend on Sangdong’s ability to move from commissioning to stable throughput with the expected grade improvements. A successful crossover above that level, accompanied by declining volatility, would refocus attention on the year-to-date gains and the longer-term industrial thesis.

For now, the market is still searching for a floor. The dual delistings are creating a structural overhang that masks what is, operationally, a company beginning to deliver on its core promise. The question is whether the production data from South Korea in the coming months will be strong enough to outweigh the friction of the stock’s ongoing reorganisation.