Almonty’s Dual-Metal Advance: Drilling Confirms Sangdong Quality as $800M Convertible and Russell 1000 Entry Draw Near

Almonty's Sangdong mine targets 80% of non-China tungsten output; molybdenum drilling advances as South Korea secures domestic supply. Stock up 117% YTD.

The strategic metals landscape is shifting under the weight of geopolitics, and Almonty Industries finds itself at the centre of two converging crises. On one side, China’s chokehold on tungsten exports has sent shockwaves through Western defence supply chains. On the other, South Korea’s dwindling molybdenum reserves are pushing Seoul to secure domestic sources. Almonty’s Sangdong mine in South Korea – already in production for tungsten – is now also proving up its molybdenum potential through an active drilling campaign.

Almost two-fifths of the planned 12,000-metre programme has been completed, with 37 percent of 26 drill holes finished. Initial lab assays have validated historical data, and management sees the quality of the ore body as confirmed. “The development plan is on track,” CEO Lewis Black said, adding that the company intends to move straight into extraction once the current investigation is wrapped up.

The timing could hardly be more fortuitous. The South Korean government has urged local businesses to lock in domestic raw material supplies, as molybdenum is essential for high-strength steel, specialty alloys, defence hardware, aerospace components and semiconductor fabrication. Spot prices for the metal have climbed 23.5 percent over the past twelve months. Meanwhile, the tungsten narrative grows ever more urgent. Last February Beijing introduced export licences for ammonium paratungstate, and shipments of that key intermediate collapsed by roughly 70 percent last year. Tungsten’s extreme hardness and heat resistance make it irreplaceable in armour-piercing munitions, missile guidance systems and advanced chips – and Western militaries are racing to find alternatives to Chinese supply.

Almonty has already begun delivering a solution. Its Sangdong mine started commercial production in March, and at full capacity it is expected to account for more than 80 percent of all tungsten output outside China. The capital to complete the ramp-up is now in place. On June 10 the company closed a convertible note offering that raised gross proceeds of $800 million, with a coupon of 2.25 percent. Investor demand was so strong that the overallotment option was fully exercised, leaving Almonty with net cash of approximately $772.7 million. Those funds are earmarked directly for the expansion of the Korean operations.

The stock market has taken notice. Shares advanced 4.11 percent on Tuesday to C$26.08, pushing the year-to-date gain to a staggering 116.79 percent. That rally has come with hair-raising volatility – the annualised figure sits at 102.62 percent – but technical support levels are clear. The 52-week high of C$33.35 remains in sight once production milestones are hit, while the 200-day moving average at C$17.29 provides a solid floor.

Beyond the operational and financial progress, Almonty is repositioning its corporate structure to match its strategic ambitions. The company is shifting its headquarters from Toronto to Montana, a deliberate nod to its growing ties with the US defence establishment. At the most recent annual meeting, shareholders voted overwhelmingly – with over 99 percent approval – to install two retired US Army generals on the board: Gustave F. Perna and Alan Estevez. The message to the Pentagon is clear: Almonty is a trusted partner. In a further move to expand capacity, the company acquired the Gentung project, where refurbished machinery from its Spanish operations will be used to restart production by the end of 2026, keeping capital costs low.

A powerful structural catalyst looms at the end of June. Almonty will be added to the Russell 1000 and Russell 3000 indices, forcing passive funds and ETFs to accumulate the stock. History shows that index inclusion drives elevated trading volumes in the weeks beforehand, broadens analyst coverage, boosts liquidity and steadily increases institutional ownership. The pattern mirrors what happened in the rare earths market during the 2010s, when Chinese export curbs triggered years of strategic panic and a scramble for non-Chinese supply. More than 24 months are typically needed to bring a new Western mine online or restart an old one – a timeline Almonty has already beaten. With Sangdong producing, financing secured, a board fluent in the language of the Pentagon, and index demand about to land, the company now has everything in place except the final delivery.