Almonty Doubles Down on Capital Markets Firepower as Tungsten Offtake Pipeline Lengthens

Almonty Industries files $246.8M shelf prospectus, expands buyback, and locks in offtake as Sangdong mine ramps production.

The tungsten producer's financing strategy is coming into sharp focus. Almonty Industries has filed a shelf prospectus covering up to US$246.79 million in common share issuance, including a component earmarked for an employee participation program. The August 23 filing hands the company fresh flexibility as it pushes ahead with the next phase of expansion at its Sangdong mine in South Korea, the tungsten oxide plant, the Gentung project in Montana, and the ongoing enlargement of its Panasqueira operations.

The timing carries a deliberate symmetry. Just a week earlier, the board had authorized a US$300 million share buyback program covering up to 14.4 million shares, to run over 36 months. Pairing a potential capital raise with a repurchase scheme signals how far Almonty has come in its own estimation as a capital markets operator — a standing underpinned by the oversubscribed US$800 million convertible bond completed earlier.

The Numbers Behind the Ambition

Almonty's second-quarter results, published August 11, provide the foundation for this financial headroom. Revenue surged 498 percent year over year to C$43.0 million. Net income reached C$181.8 million against a loss of C$58.2 million in the comparable period a year earlier — though roughly C$173.1 million of that figure stems from non-cash valuation gains on derivatives and warrants. Operating profit from the mining business swung to C$26.1 million, with a mine-level gross margin of 60.7 percent.

The balance sheet tells an equally striking story. Cash stood at C$1.23 billion as of June 30, up from C$268.4 million at the end of 2025. That liquidity underpins the planned capacity ramp: Sangdong is targeting roughly 640,000 tonnes of annual ore throughput in its first phase, with an already-approved second phase aiming for around 1.2 million tonnes.

Offtake Secured Before Full Ramp

On the sales side, Almonty has locked in a meaningful slice of future production. The long-term supply agreement with Global Tungsten & Powders LLC, part of Austria's Plansee Group, has been extended by six years retroactive to July 14, with contracted volumes increased by 40 percent and pricing improved by approximately 6.3 percent. The deal secures a substantial portion of Sangdong's future output before the plant reaches full utilization.

The operational backdrop supports the commercial push. Sangdong has been producing tungsten concentrate from stockpiled ore since June, having started processing with roughly 139,700 tonnes of material at a grade of about 0.25 percent WO3. The plant is working through ore accumulated over months while ongoing mining adds fresh feed in parallel.

That shift — from construction and financing risk to measurable operating metrics — was highlighted by GBC AG in its initial assessment on August 20, when the research house issued a buy recommendation with a price target of €25.87.

A Tale of Two Tungsten Markets

The revenue surge was driven in large part by the European APT price climbing to roughly US$3,075 per MTU, against US$453 in the year-ago quarter. But the pricing picture is more nuanced than a single headline number suggests.

In China, tungsten prices have been notably volatile. The SMM China reference APT price fell to US$79,731.63 per tonne by early August, down from US$105,775.02 in July — a drop of about 24.6 percent. The internationally relevant CIF Rotterdam benchmark, by contrast, held steady at US$3,075 per MTU, barely moving from US$3,100. The correction has been almost entirely contained to the Chinese domestic market, leaving the Western pricing that matters for Almonty's export business largely untouched.

Regulatory winds are also blowing in Almonty's favor. The Bureau of Industry and Security issued a temporary rule on August 6 restricting exports of tungsten waste and scrap, limiting allocation to US persons. While the measure targets secondary materials rather than primary concentrate procurement, it reinforces the broader political push to anchor tungsten supply chains within the US and among non-Chinese partners — a climate that tends to benefit producers like Almonty.

Insider Activity and Market Positioning

One development warrants attention on the ownership side: insiders have sold a net US$227.6 million over the past three months, including US$75.1 million by executives. Michael Lewis Black and Daniel D'Amato were among the sellers, offset by a single US$1.5 million purchase by Black. Profit-taking after a massive rally is understandable, but the scale suggests even those closest to the company are mindful of valuation levels.

The stock's recent trajectory reflects that tension. Shares closed Wednesday at €15.65, down 3.4 percent on the day — a move with no specific news catalyst, likely ordinary profit-taking after a strong run. Over 30 days the stock is still up 46 percent, and it has nearly doubled since the start of the year. Yet at €15.56, it sits roughly 24 percent below its 52-week high of €20.61, set in April — evidence that the market has not fully translated recent developments into new highs.

Streamlining the Corporate Structure

Almonty is also consolidating its trading venues. After delisting from the Toronto Stock Exchange in late July, the company's Australian depositary interests cease trading at Friday's close, with formal delisting from the ASX scheduled for September 1. Going forward, the stock trades on the Nasdaq and in Frankfurt.

The expanded Global Tungsten & Powders contract, the regulatory tailwinds, and the operational progress at Sangdong together give Almonty a clearer line of sight on revenue than at any point in its recent history. The question now is whether the market will reward that visibility with a return toward those April highs — or continue to weigh the insider selling and the gap between the shelf prospectus and the buyback against the operational momentum.