South Korea’s Molybdenum Emergency Fuels Almonty’s Second Act as Russell 1000 Entry Beckons

Almonty's Sangdong tungsten mine enters production as South Korea's molybdenum emergency opens new revenue line; stock surges 459% with Russell index upgrade and institutional backing.

Almonty Industries has spent years as a one-trick tungsten pony in the eyes of investors. That narrative is fracturing. The company now stands at the intersection of two critical-mineral crises, with South Korea’s molybdenum shortage opening a fresh revenue line alongside its flagship Sangdong tungsten mine. Meanwhile, a Russell index upgrade and a blockbuster convertible bond highlight just how much institutional appetite has shifted.

The molybdenum story broke into the open on Tuesday when management provided a drilling update at the Sangdong molybdenum project, which sits adjacent to the operating tungsten mine. South Korea has declared a national emergency over molybdenum supplies, with state reserves completely depleted. The government is now leaning on private companies to secure domestic sources, and Almonty is drilling at exactly the right time. The current program covers 12,000 metres; roughly 37% has been completed, and laboratory results confirm historical data. The company plans an accelerated development schedule, leveraging existing infrastructure to close what is effectively a supply gap for the nation’s semiconductor and defence industries.

Spot molybdenum prices have climbed more than 23% over the past year. That tailwind, combined with the South Korean urgency, has given the stock a second gear. Almonty shares surged 459% in the twelve months to Tuesday’s close of C$26.08, good for a 22% weekly gain. Yet the stock remains just below its 50-day moving average, consolidating after hitting an all-time high in mid-April. The relative strength index sits at a neutral 51, suggesting the rally may have room to run if operational milestones are met.

Tungsten’s strategic stranglehold

Molybdenum is the new chapter, but tungsten remains the bedrock of Almonty’s value proposition. China controls the lion’s share of global tungsten output, and in February 2025 it introduced export licences for ammonium paratungstate. The result: APT exports collapsed by roughly 70% last year. Tungsten is nearly impossible to substitute in armour-piercing ammunition, missile guidance systems, and high-performance semiconductors. Western defence buyers are scrambling for alternatives, with the Pentagon aiming to eliminate imports from hostile states by 2027.

Almonty’s Sangdong mine began production in March and, at full capacity, could supply over 80% of the world’s tungsten output outside China. That position is reinforced by a board that now includes two retired U.S. generals – Gustave F. Perna and Alan Estevez – approved by shareholders with more than 99% of the vote. The company has also moved its headquarters from Toronto to Montana, a deliberate signal that it intends to be a trusted Pentagon partner. The recent acquisition of the Gentung project, which will reuse older machinery from Almonty’s Spanish operations, aims to start production by the end of 2026 at reduced capital cost.

Institutional catalysts pile up

Financial firepower is no longer a concern. Last week Almonty closed a $800 million convertible note with a coupon of just 2.25%. The offering was heavily oversubscribed, and the company exercised the full overallotment option. Institutional capital, far from being hesitant, is competing for access.

The next trigger is structural. By the end of June, Almonty will join the Russell 1000 and Russell 3000 indices. Index funds and ETFs tracking these benchmarks will be forced to buy the stock. History shows that such inclusion typically boosts trading volumes, broadens analyst coverage, and steadily increases the institutional shareholder base long after the initial rebalancing.

The pattern echoes the rare-earth panic of the early 2010s, when China cut exports and Western nations spent years scrambling to build new supply chains. New mines take at least 24 months to come online; reopening old ones takes a similar amount of time. Almonty has already completed that lead time. Sangdong is producing. The financing is secured. The board speaks the language of the Pentagon. And now, with a molybdenum crisis handing it a second pillar, the company has two geopolitical tailwinds blowing in the same direction. The only missing piece is consistent operational delivery – but for a stock that has already flown 116% year-to-date, the market is betting that the execution will follow.