Shareholders React to Almonty Industries’ Dilutive Equity Raise

Almonty CA0203981034

Investors in Almonty Industries are facing the immediate cost of the company's ambitious growth strategy. The tungsten specialist has announced a significantly enlarged placement of new shares, a move that has unsettled the market and triggered a sharp sell-off. Rather than focusing on the planned expansion, the investment community is punishing the stock for the substantial dilution of existing holdings.

The capital raised is earmarked for a clear strategic purpose. A significant portion is allocated to the recently acquired "Gentung Browns Lake" tungsten project in Montana, USA. This marks Almonty's first operational foothold in the United States—a critical move as Western governments actively seek independent sources for strategic metals. Additional funds will support the expansion of the Panasqueira mine in Portugal and exploration at the Sangdong molybdenum project in South Korea.

The company's commitment to scaling its operations is further emphasized by the recent appointment of Steven L. Allen, a retired Brigadier General, as Chief Operating Officer in early December. His role will focus on optimizing the supply chains across the mining portfolio.

Market Reaction and Placement Details

The market was caught off guard by the scale of the financing. Almonty placed 18 million new common shares at a price of US$6.25 each. The volume was increased at short notice from an initially planned 15 million shares, grossing the company US$112.5 million. For current shareholders, the terms are difficult to swallow: the issue price sits noticeably below the prevailing trading level, which explains the immediate downward pressure.

The reaction was swift and severe. In extended trading, the stock lost approximately 13% of its value as market participants priced in both the discount and the dilution of their stakes. Should the underwriters exercise their option to purchase an additional 2.7 million shares, the total gross proceeds of the offering would rise to nearly US$129.4 million.

The transaction is scheduled for completion on December 10, 2025. In the near term, the negative dilution effect is overwhelmingly dictating the share price trajectory. For the medium to long term, Almonty's management must now demonstrate that the millions invested into its U.S. and European projects will create more value for the company than was destroyed by the issuance of new equity.