Almonty Clears KfW Debt as Tungsten Cash Pile Swells Past C$1.2 Billion

Almonty's cash jumps to C$1.2B after convertible bond, repays KfW loan, and starts production at Sangdong, driving revenue up 498%.

The balance sheet transformation at Almonty Industries has been nothing short of dramatic. Six months ago, the tungsten producer held C$268.4 million in cash. By June 30, that figure had ballooned to C$1.2 billion — a roughly C$930 million swing fueled largely by an oversubscribed US$800 million convertible bond offering.

The company has now fully repaid its credit facility with KfW IPEX-Bank, a move completed after the second quarter closed. That repayment eliminates a major liability and, according to CEO Lewis Black, unlocks the ability to advance global projects in parallel rather than sequentially. Both the Gentung tungsten project in Montana and the expansion of the Panasqueira mine in Portugal are now slated for simultaneous development.

A Quarter of Two Halves

The headline numbers for the three months ending June 30 tell a story of explosive growth — but the fine print matters. Net income came in at US$181.8 million, a staggering swing from the US$58.2 million loss recorded in the year-ago period. Yet roughly US$173.1 million of that profit stems from non-cash revaluation gains, not operational performance.

The underlying operating picture is nonetheless robust. Gross revenue hit US$43.0 million, up 498 percent from US$7.2 million in the same quarter last year. Adjusted EBITDA flipped to positive US$17.6 million from a US$4.8 million loss. Operating profit from mining reached US$26.1 million, versus a US$0.9 million loss a year earlier. Diluted earnings per share came in at US$0.62, compared with a US$0.30 loss previously.

The engine behind this growth is the Sangdong tungsten mine in South Korea, which began producing in late June and has entered early commercial production. The company reported an ore inventory of roughly 139,700 tonnes at an average grade of 0.25 percent tungsten trioxide for the quarter, with first-phase processing capacity targeted at 640,000 tonnes annually. A second phase — already fully permitted — would double that to 1.2 million tonnes per year.

Structural Shifts and Strategic Positioning

The transition from developer to producer is also reflected in the corporate structure. Jorge Beristain took over as chief financial officer on June 1, succeeding Brian Fox, and the company officially relocated its headquarters from Toronto to Dillon, Montana. The move stateside, combined with fresh financial leadership, is designed to deepen Almonty's integration into Western supply chains for strategic metals. Recent inclusion in the Russell 1000 and Russell 3000 indices underscores the company's growing market capitalization and institutional footprint.

Tungsten pricing provides a favorable tailwind. The European APT average price stood at US$3,075 per MTU during the quarter, with China controlling roughly 80 percent of global production — a geopolitical dynamic that elevates the value of Western mining projects like Sangdong. Almonty has also extended its offtake agreement with Global Tungsten & Powders, lengthening the term by six years to 21 years total and boosting volume by 40 percent. At current prices, the company pegs the annual revenue potential from that contract at around US$490 million.

Market Dynamics and the Road Ahead

Investors are parsing the numbers with some caution. The convertible note carries a 2.25 percent coupon and matures in 2031, but the sheer size of the raise has raised questions about potential future dilution. Short interest adds another layer of intrigue: as of mid-July, roughly 6.6 percent of the float — about 19 million shares — was sold short. Analyst price targets cluster between US$16 and US$22, while the stock recently traded at US$13.70, a gap that has fueled speculation about possible short-covering pressure.

For context, the first quarter saw a loss per share of US$0.02 on revenue of US$25.40 million, beating consensus estimates of US$22.99 million. The Q2 revenue figure of US$43 million landed within the US$35–50 million range analysts had anticipated ahead of the release.

The Portuguese operations also merit attention: Panasqueira generated US$25.4 million in revenue during Q1, up 221 percent year over year, with EBITDA of US$6.1 million. The next quarterly report is scheduled for August 17, which will offer the first glimpse of whether Sangdong's ramp-up trajectory can be sustained — and whether the market's skepticism, reflected in the short position, begins to erode.