Almonty’s Sangdong Mill Starts Processing Ore as Plansee Reaffirms Offtake — Investors Weigh Dilution From $800 Million Convertible

Almonty's Sangdong mine in South Korea begins tungsten production after 30 years, targeting Western supply gaps. Despite progress and backing from Plansee, stock falls on dilution concerns.

Western governments and industrial buyers are scrambling to secure tungsten supplies outside China, and Almonty Industries has just taken a major step toward filling that gap. After 30 years of idleness, the Sangdong mine in South Korea’s Gangwon province began feeding ore through its newly built processing plant at the end of June, with regular throughput operations starting July 1. The milestone transforms Almonty from a developer into an active producer — yet the market is far from cheering.

The company is drawing on a stockpile of roughly 139,700 tonnes of run-of-mine material with an average grade of about 0.25% tungsten trioxide. At current market prices, Almonty estimates the gross value of that inventory at approximately $68 million, enough to keep the mill running for about 2.6 months while it fine-tunes blending and plant performance.

The transition comes at a time when tungsten prices have skyrocketed. According to the Plansee Group, Almonty’s largest shareholder, the price of tungsten has increased as much as tenfold since early 2025, driven by persistent supply tightness. Plansee, which holds a 10% stake in Almonty, publicly reaffirmed its long-term offtake agreement with Sangdong in its 2025/26 annual report. The Austrian conglomerate — with €2.35 billion in revenue, 11,120 employees, and 36 production sites — derives its tungsten supply from three pillars: scrap collection, recycling technology, and long-term mine contracts. Sangdong is a cornerstone of that third pillar, with Plansee committed to taking the majority of its output.

Despite the operational progress and the renewed vote of confidence from its biggest backer, Almonty’s stock has been under pressure. On Thursday, shares traded at C$21.03 on the Toronto Stock Exchange, down 0.43% from the previous day. That leaves the equity nearly 37% below its April record high of C$33.35. Over the past week the stock has lost 5.48%, and over 30 days it has fallen 5.40%.

Part of the selling pressure can be traced to a massive capital-raising exercise completed in June. Almonty placed $800 million in convertible senior notes carrying a 2.25% coupon and maturing in 2031. The deal was oversubscribed, and underwriters exercised their full over-allotment option. The initial conversion price is roughly $27.40 per share. While the fresh liquidity funds the ramp-up at Sangdong and development of an adjacent molybdenum project, the prospect of dilution has weighed on near-term sentiment. Almonty retains the right to settle conversions in cash rather than shares, a feature that could limit the dilutive impact for existing holders.

The volatility has been extreme. The stock’s 14-day relative strength index sits at 36.3, indicating oversold conditions, while the annualized 30-day volatility is about 90%. The shares are currently 17.45% below their 50-day moving average of C$25.47 but still 13% above the 200-day average of C$18.62 — a sign that the medium-term uptrend remains intact despite the short-term pullback.

Adding to the churn, Almonty was added to the Russell 1000 and Russell 3000 indices on June 29 during the annual reconstitution. The inclusion boosted trading volumes and institutional attention, but it coincided with broader market swings that added another layer of price instability.

On a longer time horizon, the returns are still striking. Almonty’s stock has gained 74.81% year to date and 158.04% over the past 12 months, reflecting the broader rerating of Western tungsten producers as supply chains pivot away from China.

Beyond Sangdong’s tungsten output, Almonty is advancing a downstream tungsten oxide plant in nearby Yeongwol and a molybdenum project at the same mine site. A large-scale drilling program is about 37% complete, with early results described as encouraging for the long-term diversification of the company’s commodity exposure.

For now, the market is demanding proof of delivery. The ore stockpile is moving through the mill, and the largest shareholder has locked in its offtake. But investors want to see the rock turned into shippable, revenue-generating tungsten concentrate before they fully reward the operational milestone.