Plansee's Standby Order and a Wall Street Upgrade Ignite Almonty's Rally as Tungsten Supply Tightens

Almonty Industries surges after Plansee Group reaffirms Sangdong offtake and DA Davidson lifts price target to $33, underscoring its strategic role in Western tungsten supply as China cuts output.

Almonty Industries capped a volatile week with a bang, sending its Toronto-listed shares 12.4% higher on Friday to C$23.38. The advance was fuelled by two distinct but reinforcing catalysts: a formal reaffirmation of the long-term offtake agreement from its largest shareholder, Plansee Group, and a sharply increased price target from DA Davidson that underscored the company’s strategic value in a tightening tungsten market.

Plansee’s annual report, published on July 7, confirmed the group’s commitment to buying concentrate from the Sangdong mine in South Korea. The Austrian industrial giant booked revenue of €2.35 billion and stated explicitly that the long-term offtake arrangement remains in place — a signal to the market that the demand behind the current tungsten boom is backed by real industrial off-takers. The confirmation came just days after Almonty started processing ore at Sangdong on July 1, marking the transition from developer to producer. Roughly 139,700 tonnes of ore are now stockpiled, grading about 0.25% tungsten trioxide.

Wall Street took notice. DA Davidson lifted its price target on Almonty to $33 from $25, reiterating a Buy rating. The bank argued that the company’s position as one of the few Western tungsten producers outside China makes it a critical link in supply-chain diversification. Texas Capital continues to rate the stock a Strong Buy, and B. Riley has a $23 target, leaving the consensus at “Moderate Buy”.

The rally also came despite the overhang of a recently placed convertible note. Almonty issued $700 million in convertible debt — expanding to $800 million after full exercise of the greenshoe option — carrying a 2.25% coupon and maturing in 2031. The initial conversion price of roughly $27.40 per share sits well above the current trading level, meaning the instrument will function as straight debt for now, with no immediate dilution. The company reported roughly $260 million in cash, a current ratio of 2.5, and revenue of about $32.5 million.

Behind the strategic positioning lies a powerful commodity tailwind. China controls approximately 80% of global tungsten output, and Beijing cut its 2026 production quotas by 8%. That decision has sent the European price of ammonium paratungstate soaring 240.5% this year, from a range of $1,650–$1,900 per metric tonne unit in February to more than $3,000 today. Almonty, operating outside Chinese supply chains, is a direct beneficiary. Meanwhile, a 12,000-metre drilling programme is targeting additional molybdenum resources adjacent to the existing mine, potentially adding a second revenue stream tied to defence and high-tech demand.

Even with Friday’s sharp move, the stock sits 29.9% below its 52-week high of C$33.35, reached on April 17. On a weekly basis, the gain was a modest 1.04%, while the monthly return stands at 9.82%. Longer-term, the rally is undeniable: the shares have advanced 94.35% year-to-date and 200.51% over the past 12 months. Annualised 30-day volatility of 97.44% reflects the violent swings since production began.

Technically, Almonty is 7.94% below its 50-day moving average of roughly C$25.39, but 25.08% above the 200-day line. The relative strength index of 45.8 points to a neutral reading — neither overbought nor oversold. The long-term uptrend remains intact, though short-term momentum has cooled from the April peak.

With the mill running and Plansee’s commitment locked in, attention now turns to execution. The key question is how quickly Almonty can convert the stockpiled ore into consistent concentrate shipments and, ultimately, into revenue over the coming quarters. The convertible note provides ample liquidity without near-term dilution, giving management the runway to scale up production just as the West scrambles for non-Chinese tungsten supplies.