Almonty Bets $300 Million That Its Tungsten Story Is Still Undervalued

Almonty Industries authorizes $300M buyback (5% of shares) as Sangdong tungsten mine enters operations, signaling confidence in undervalued stock.

The tungsten producer is putting its money where its mouth is. Almonty Industries has secured board approval for a buyback of up to 14.4 million common shares — roughly 5 percent of its outstanding stock — worth as much as $300 million, to be executed over 36 months starting August 24. Management frames the move as a straightforward valuation play: the market, in its view, has yet to price in what the company's tungsten assets are truly worth.

The timing is deliberate. Just a day before the buyback kicks off, Almonty announced that its processing plant at the Sangdong mine in South Korea's Gangwon province has entered throughput operations. That milestone — long touted as the company's central value driver — now shifts the narrative from development story to operating reality. The message to shareholders is unambiguous: management believes the stock is cheap now that the mine is actually running.

The Numbers Behind the Confidence

Almonty's second-quarter results give the buyback some heft. For the three months ending June 30, 2026, the company reported revenue of $43 million and adjusted EBITDA of $17.6 million. Net income came in at $181 million, or $0.64 per diluted share — a figure that reflects the financial firepower underpinning the board's decision to authorize such a sizable capital return program.

The stock has already had a remarkable run. Shares recently traded at $16.36, up 85.9 percent year-to-date, with a one-day gain of 8.42 percent and a 19.42 percent weekly advance. Over twelve months, total shareholder return stands at 249.57 percent. Even after that rally, though, the shares sit well below analyst targets — the latest rating is a "Buy" with a price objective of $33.00.

Not everyone is cheering, however. Diamond Equity Research trimmed its earnings forecast for the current fiscal year on August 14, cutting its estimate from $0.55 to $0.39 per share. The revision landed in the same week as the delisting announcements and the production start, a reminder that the operational ramp-up at Sangdong is being watched with varying degrees of skepticism.

A Streamlined Listing Structure

The buyback coincides with a broader corporate restructuring. Almonty has already completed a voluntary delisting from the Toronto Stock Exchange, effective July 31, 2026. Its CDI listing on the Australian Securities Exchange is set to be suspended at the close of trading on August 28, with a final delisting expected on September 1. That leaves two primary venues: Nasdaq under the ticker ALM and Frankfurt under ALI1. The consolidation is likely to concentrate trading liquidity at the remaining exchanges.

What's Next

The buyback's success hinges on whether Sangdong can deliver on its promise. The mine is scaling up its processing capacity with an eye toward demand from AI-adjacent applications, and expanded offtake agreements plus a potential index inclusion are cited as key catalysts. The risks are equally clear: expectations are already high, and much of the optimism may be baked into the current price.

Whether the $300 million repurchase actually closes the valuation gap management describes will only become clear once Sangdong reaches full throughput. For now, Almonty has made its bet — and the market will be watching the operational data closely in the months ahead.