Almonty Industries: Sangdong's Promise Meets a Bitter Stock Market Reckoning

Almonty shares drop nearly half from April peak amid TSX and ASX delistings and insider sale, even as Sangdong mine ramps up production and expands offtake deal.

The tungsten producer Almonty Industries is navigating a paradox. Its flagship Sangdong mine in South Korea is finally processing ore into saleable concentrate, and a major offtake deal has been expanded to stretch 21 years. Yet the company’s stock has been slashed by nearly half from its April peak, caught in a pincer movement of dual exchange delistings and a high-profile insider sale.

Shares closed at C$17.22 on Tuesday, down 8.4% on the day, extending a weekly slide of 14.4%. The stock now trades roughly 48% below its 52-week high of C$33.35, reached just three months ago. For investors who bought near the top, the pain is acute. But zoom out to a 12-month view, and the picture flips: Almonty has still gained more than 266% over the past year.

A deliberate retreat from Toronto and Sydney

The immediate catalyst for the selling pressure is structural. Almonty is pulling its listing from the Toronto Stock Exchange this Friday, with only two trading sessions remaining. Simultaneously, it is completing a withdrawal from the Australian Securities Exchange, where formal approval has been granted. Letters will go out to CDI holders on July 29, with CHESS depository interests ceasing to trade on August 28 and the official delisting set for September 1.

Management frames the exits as a cost-cutting exercise, not a sign of distress. Only 0.80% of Almonty’s total issued shares remain on the Australian register, making the listing fees disproportionate to any benefit. After both delistings, the company will maintain its Nasdaq listing under the ticker “ALM” and its Frankfurt listing, positioning the US exchange as its primary trading venue.

The Deutsche Rohstoff overhang

Compounding the exchange mechanics, a major strategic investor has trimmed its position. Deutsche Rohstoff AG, a long-term anchor shareholder, sold part of its stake on July 22. The move is understandable — after years of accumulation and a multi-bagger return, profit-taking is rational. But the sale created a temporary oversupply of shares, and the stock has been grinding lower ever since.

The combination of delisting uncertainty and insider selling has produced extreme volatility. The annualized 30-day volatility stands at roughly 83%, a figure more typical of micro-cap speculatives than a company with a market capitalization of €3.32 billion. The 14-day relative strength index has fallen to around 34.4, edging into oversold territory. The stock now sits 27% below its 50-day moving average of C$23.54, a stark divergence that suggests short-term momentum has detached from the medium-term trend.

Sangdong’s industrial momentum

None of this stock market turbulence has disrupted the operational story. Almonty’s newly commissioned processing plant at Sangdong in Gangwon Province began treating stockpiled run-of-mine material in June, producing market-grade tungsten concentrate. Weeks later, the company substantially expanded its offtake agreement with Global Tungsten & Powders, part of Austria’s Plansee Group. The contract term was extended from 15 to 21 years from first delivery, and total volume increased by 40%. At current tungsten prices, the improved terms imply annual revenue of approximately $490 million.

Tungsten is indispensable to semiconductor fabrication and defense technology, and Western industries are scrambling for supply chains that bypass China. Almonty is positioning itself as one of the few non-Chinese players capable of delivering at scale. A further endorsement came from Red Mountain Mining, which has begun exploration drilling at the Pioneer Tungsten Project in Montana, explicitly citing proximity to Almonty’s Gentung deposit as a geological indicator.

The chart’s next test

Technicians are watching whether the stock can find support near its 200-day moving average of C$19.21. That level has not yet been breached, but the current price sits well below it, leaving the stock in a technical no-man’s-land. The correction has been savage in percentage terms, but it follows an extraordinary run — the stock had more than tripled from its level a year ago before the pullback began.

The coming weeks will test whether the dual delisting and the Deutsche Rohstoff sale have exhausted the selling pressure, or whether further profit-taking lies ahead. For long-term holders, the calculus is straightforward: Sangdong is producing, the offtake is locked in, and the strategic case for tungsten has rarely been stronger. But the stock market is not always patient with operational logic, and Almonty is learning that lesson the hard way.