Almonty Shares Climb as $800M Convertible Fears Fade and Russell Index Entry Approaches

Tungsten miner Almonty completes record $800M convertible note offering, stock rebounds 7% as investors focus on fully funded Sangdong mine and US defense demand for non-Chinese tungsten.

The tungsten miner Almonty Industries put a turbulent month behind it on Thursday, with its stock surging more than 7% to C$22.89 in Toronto. The rally came as relief replaced anxiety over a record-breaking $800 million convertible note offering that had initially wiped a quarter off the company’s market value. Now, with the financing closed and a major index promotion on the horizon, investors are refocusing on the strategic prize: a fully funded Sangdong mine in South Korea and growing Western demand for non-Chinese tungsten.

Oversubscribed Convertible Draws $800M

Almonty completed the massive debt placement — a convertible note issuance that saw investors pull a $100 million greenshoe option, lifting total proceeds to $800 million. After underwriting fees and expenses, the company pockets roughly $773 million in net cash. The deal was heavily oversubscribed, a sign of institutional appetite despite the dilutive overhang.

Management immediately earmarked a significant portion of the capital for shareholder protection. Some $83 million went into capped call transactions designed to limit dilution upon future conversion of the notes. The cap price sits at just over US$41 per share, well above current trading levels. Another $50 million will retire existing debt. The lion’s share — more than half a billion dollars — is directed at the Sangdong tungsten mine, which is on track to begin production in July.

Board Backed by Pentagon Insiders

The financing coincided with Almonty’s annual meeting in Montana, where shareholders voted overwhelmingly to re-elect all seven board members, with each director receiving more than 99% approval. The board includes General Gustave F. Perna and Alan Estevez, both of whom strengthen the company’s ties to US defense procurement. Almonty is positioning itself as a reliable Western supplier of tungsten — a metal the Pentagon has deemed critical for armaments.

China’s tight grip on tungsten exports has already sent global prices soaring. From January 2027, the US Department of Defense will ban Chinese-origin tungsten from American defense supply chains entirely. Almonty stands to capture a direct benefit from that embargo, a long-term tailwind that analysts say justifies the current volatility.

Index Inclusion Adds Structural Demand

A near-term catalyst arrives on June 29, when Almonty is added to both the Russell 1000 and Russell 3000 indices. The move forces index-tracking funds to buy the stock, creating a wave of passive demand that could further support the share price. The dual listing — also traded in Australia at A$22.32 — gives global investors multiple access points.

Analysts are staying bullish despite the recent turbulence. Oppenheimer lifted its price target to US$25 and reiterated a buy rating. B. Riley also reaffirmed its positive stance, while Bank of America and Cantor Fitzgerald are updating their models to reflect the new capital structure. With Sangdong ramping up next month and US defense policy pushing tungsten supply chains away from Beijing, Almonty’s financing pain may prove to be a foundation for long-term gain.