Fresh Capital and a Landmark Index Listing Propel Almonty's Bid to Reshape Global Tungsten Supply

Tungsten producer Almonty closes oversubscribed convertible notes and joins Russell indices, fueling forced buying ahead of U.S. Chinese tungsten ban in 2027.

Almonty Industries has locked in a pair of structural catalysts that analysts say could redefine the company’s trajectory. On June 9, the tungsten producer closed a $773 million convertible note offering that was significantly oversubscribed, while also securing a place in the Russell 1000 and Russell 3000 indices effective June 29. The moves come as the company races to bring its Sangdong mine in South Korea to full production ahead of a U.S. deadline that will bar Chinese tungsten from defence supply chains on January 1, 2027.

The convertible notes carry an annual coupon of 2.25 percent and mature in July 2031, with interest payments beginning January 1, 2027. The conversion price was set at roughly $27.40 per share, a 32.5 percent premium over the $20.68 closing price on June 4. To mitigate dilution upon conversion, Almonty allocated roughly $83 million of the proceeds to capped-call transactions. Another $50 million goes toward repaying existing debt, with the remainder earmarked for working capital and potential acquisitions. The net proceeds landed at $772.7 million after the initial buyers exercised a greenshoe option that expanded the offering from $700 million to $800 million.

The Russell inclusion is no mere honour. With roughly $12.2 trillion in assets benchmarked to the index family, passive funds that track the Russell 1000 and 3000 must now buy Almonty shares. The mechanism creates a wave of forced buying that many hedge funds and active managers had been unable to justify until now. The listing date of June 29 sits just three weeks after the convertible close, compressing two powerful catalysts into a tight window.

Almonty’s operating performance is already accelerating. In the first quarter of 2026, revenue surged 221 percent to C$25.4 million, driven by higher spot prices for ammonium paratungstate and stronger output from the Panasqueira mine in Portugal. The company held C$259.9 million in cash at the end of March, a cushion that deepened further with the convertible proceeds. Almonty recently transitioned from project developer to operating miner, and the Sangdong mine is expected to supply more than 80 percent of all non-Chinese tungsten once it reaches nameplate capacity.

Shareholders ratified a slate of seven directors at the annual meeting, every one of them the candidates proposed in the April 29 management information circular. The board pledged to further refine its skill set and diversity to match the company’s growing presence in U.S. markets. Management itself was confirmed in office the day the convertible closed, signalling continuity at a pivotal moment.

Despite the bullish fundamentals, the stock slipped roughly 5 percent on Wednesday to C$21.08. Traders cited dilution anxiety from the convertible’s potential conversion, even though the capped-call structure caps the impact. The dip, however, sits within a 335 percent year-to-date rally, and analysts view the pullback as temporary profit-taking. The volatility of recent weeks remains elevated.

Regulatory tailwinds are now hard to ignore. Starting January 1, 2027, the U.S. DFARS rule will prohibit Chinese tungsten in military supply chains. Almonty’s Sangdong mine, situated in a U.S. ally, is the most advanced non-Chinese tungsten project capable of filling that gap. With fresh liquidity, an index-induced buying wave, and a regulatory deadline that aligns perfectly with the mine’s ramp-up, Almonty has entered a period where execution — not financing — will determine whether it captures the moment.