Convertible Note and First Concentrate: Almonty Marshals $800M for Tungsten Output

Almonty switches on Sangdong processing plant, raising $800M for ramp-up. DA Davidson lifts price target to C$33 amid tungsten supercycle and US defense demand.

Almonty Industries has switched on the processing plant at its Sangdong mine in South Korea, marking the company’s transition from project developer to active tungsten producer. The facility began throughput operations on July 1, 2026, feeding stockpiled ore through the newly commissioned circuit to produce saleable tungsten concentrate. The initial ramp-up draws on approximately 139,700 tonnes of ore already stockpiled on site, with a tungsten oxide grade ranging from 0.24% to 0.35%. The gross market value of that feedstock is estimated at US$68 million — enough to keep Phase 1 running for roughly 2.6 months while the plant dials in its process parameters.

The milestone comes with serious financial firepower. In June 2026, Almonty closed an oversubscribed convertible note offering that raised a gross US$800 million. The underwriters fully exercised the over-allotment option. After costs, the company nets around US$772.7 million. The note carries a 2.25% coupon and matures in 2031. That capital is earmarked to finance the ramp-up and the eventual expansion to Phase 2, which targets annual concentrate production of 4,600 tonnes — a volume that would represent roughly 40% of all tungsten output outside China. Just days before the plant start, Almonty was also added to the Russell 1000 and Russell 3000 indices on June 29, 2026, boosting its visibility among institutional and passive fund managers.

DA Davidson responded to the production start by lifting its price target to C$33 from C$25 on July 10, 2026, while reaffirming a “Buy” rating. The bank cited the progress at Sangdong, a strengthened balance sheet, elevated tungsten prices, and the potential for US government involvement as key drivers. The broader analyst consensus, tracked by MarketBeat, sits at C$21.88 over twelve months from six analysts, with the new C$33 target marking the high end of the range.

The tungsten market itself is in the midst of a supercycle. Ammonium paratungstate recently traded between US$3,040 and US$3,250 per metric tonne unit, with Chinese export restrictions tightening supply and pushing prices to record levels. Almonty has locked in offtake agreements with price floors, including commitments tied to US defence applications, providing revenue visibility in a market where the stock’s 30-day volatility stands at 97.44%.

Shares closed the week at C$23.38 in Toronto, up 12.4% on the session. The stock has gained 94.35% year-to-date and a striking 258.59% over the trailing twelve months, though it remains 29.90% below its 52-week high of C$33.35 set in April 2026. On a monthly basis, the equity has slipped 5.54% as traders digest the earlier rally.

Technically, the 14-day relative strength index sits at 48, neutral territory with no overbought or oversold signal. The 200-day moving average at C$18.69 provides a long-term floor, while the 50-day average at C$25.40 — roughly 8% above the current price — acts as near-term resistance. That leaves Almonty trading about 25% above its 200-day line.

Sangdong’s ramp-up places Almonty among a handful of active high-grade tungsten producers outside China, a strategic advantage as Western governments and industries seek to secure critical mineral supply chains. By contrast, peers such as Fireweed Metals only began a feasibility study for its Mactung project in Yukon in 2026, with completion not expected until early 2027 at the earliest. Almonty is already shipping concentrate, and with an $800 million war chest and a C$33 analyst target in place, the next phase of the story hinges on consistent output and the trajectory of tungsten prices.