Almonty Taps South Korea's Molybdenum Urgency as Sangdong Drilling Confirms Grades and Balance Sheet Strengthens

Almonty accelerates Sangdong molybdenum project in South Korea as G7 aims to limit reliance on Chinese rare earths. Strong financials and upcoming Russell index inclusion boost outlook.

The calculus for critical minerals outside China has shifted decisively. At last week's G7 summit, leaders pledged that no single country would supply more than 60% of the group's rare earth and strategic metal imports by 2030 — a direct challenge to Beijing's dominance over roughly 70% of global production and 90% of processing. For Almonty Industries, which is already ramping up tungsten output at its Sangdong complex in South Korea, the timing of its parallel molybdenum campaign could hardly be better.

The company published an operational update on June 16 covering the ongoing drilling program at the Sangdong molybdenum project in Gangwon Province. Roughly 37% of the planned 12,000-meter, 26-hole programme is now complete, and the results so far confirm mineral grades that align with historical data. The work sits directly adjacent to Almonty's flagship Sangdong tungsten mine, allowing the company to leverage existing infrastructure to accelerate molybdenum development while saving both time and capital.

The push comes as South Korea confronts a sharp depletion of its domestic molybdenum reserves — so acute that the government has publicly urged private companies to secure supply of the strategic metal. Molybdenum is a critical ingredient in high-temperature steel alloys used across aerospace, defence, and semiconductor manufacturing. Spot prices have climbed roughly 23.5% over the past year to 592.34 CNY per kilogram.

Financially, Almonty enters this phase with a dramatically strengthened balance sheet. In early June, the company closed a heavily oversubscribed placement of convertible bonds due 2031 with a base volume of $700 million. Including full exercise of an overallotment option, net proceeds reached approximately $772.7 million. Management plans to deploy the capital toward both balance sheet reinforcement and the expansion of its South Korean operations — the same ones set to supply western defence and technology customers seeking alternatives to Chinese-sourced tungsten and now molybdenum.

The operational momentum is already visible in the top line. First-quarter 2026 revenue surged 221% to $25.4 million, driven by the ramp-up of production at the Sangdong site. That financial progress, combined with the convertible injection, positions the company to bridge the pre-profitability phase that has kept the stock roughly 20% below its 52-week high. Almonty last traded at CAD 26.73, more than double its level at the start of the year, with analysts maintaining a consensus "Buy" rating and a 12-month target of CAD 25.

Investor visibility is about to get a further boost. On June 29, 2026, Almonty will join both the Russell 1000 and Russell 3000 indices — a mandatory entry point for many institutional funds that automatically track the benchmarks. The index inclusion is expected to broaden the shareholder base significantly. Meanwhile, the company has appointed Jorge Beristain as chief financial officer, effective June 1, to lead the next phase of capital markets communication. Almonty has also relocated its corporate headquarters to Dillon, Montana, reinforcing its positioning as a multi-asset critical minerals producer with a distinctly western supply chain narrative.