Almonty Turns Cash Flow Positive for the First Time in Years, Setting the Stage for Russell 1000 Entry and a Pivotal Shareholder Vote

Tungsten producer Almonty posts C$9.7M operating cash flow, revenue surge 221%, and prepares for Russell 1000 inclusion amid board vote and Pentagon support.

After years of development-stage losses, Almonty Industries has crossed a critical operational threshold. The tungsten producer generated positive operating cash flow of C$9.7 million in the first quarter of 2026 — a dramatic swing from the negative C$4.4 million recorded a year earlier. The milestone, driven by the ramp-up of its Sangdong mine in South Korea, gives the company a fundamentally new financial profile just as it prepares for inclusion in the Russell 1000 index and a shareholder vote on board composition.

The operational turnaround is reflected across the income statement. Revenue surged 221% to US$25.4 million, while adjusted EBITDA swung from a loss of US$2.4 million to a gain of US$6.1 million. Sangdong entered phase 1 production on March 17, 2026, with full commercial capacity expected by the third quarter. Phase 2 is slated for completion in 2027, which would lift annual throughput to 1.2 million tonnes and potential tungsten output above 460,000 metric tonne units.

A structural buyer steps in

On June 29, Almonty will join the Russell 1000 and Russell 3000 indexes, following FTSE Russell’s provisional list published May 22. The inclusion is not a symbolic badge — it mandates passive buying by funds tracking those benchmarks, which collectively represent roughly US$12.2 trillion in assets under management. That forced demand is independent of individual investor sentiment and comes at a time when the stock has already rallied 135.58% year-to-date and 513.42% over twelve months.

The blistering rally, however, has pushed technical indicators deep into overbought territory. The relative strength index stands at 91.2, and the stock trades 73.21% above its 200-day moving average. At Tuesday’s close of C$28.34, some analysts are questioning how much of the operational and index catalysts are already priced in. That makes the forthcoming shareholder meeting — and the governance signal it sends — all the more consequential.

Board continuity under the spotlight

Almonty's annual general meeting is set for June 9 in Toronto, with proxy votes due by 10:00 a.m. Eastern on June 5. The company has engaged proxy solicitor Sodali & Co for US$37,500 plus expenses, underscoring the importance management places on high turnout.

The board is recommending the re-election of all nominated directors. The proposed seven-member slate includes four independent directors: Mark Trachuk, Andrew Frazer, retired General Gustave F. Perna, and Alan Estevez. The other three — Lewis Black, Daniel D’Amato, and David Hanick — are classified as non-independent. Dr. Thomas Gutschlag is not standing for re-election. Under Canadian majority voting rules, each candidate must receive more votes for than against to win on an uncontested basis.

Pentagon tailwind adds strategic heft

The company’s operational and governance milestones are unfolding against a supportive policy backdrop. Starting January 1, 2027, the U.S. Department of Defense acquisition rule DFARS will prohibit military procurement of tungsten from China, Russia, Iran, and North Korea. Almonty’s production sites in South Korea, Portugal, and Spain all fall outside those restricted jurisdictions, positioning the company as a compliant supplier for defense and aerospace contractors.

The liquidity cushion built from a US$90 million Nasdaq IPO in July 2025 and a US$129 million follow-on placement in December — totalling US$219 million — provides ample runway. At the end of the first quarter, Almonty held roughly C$260 million in cash and working capital of nearly C$170 million.

With the proxy deadline approaching on Friday and index rebalancing two weeks later, Almonty enters a period where execution discipline and shareholder confidence must align. The first positive operating cash flow in the company’s modern history suggests the operational engine is finally firing. Whether the market — and the company’s own investors — fully validate that shift will become clear in the days ahead.