Almonty Industries: The Mechanical Sell-Off That Has Nothing to Do With Tungsten

Almonty's shares drop nearly 12% as forced liquidation from TSX and ASX delistings overshadows strong year-to-date gains and the strategic Sangdong mine in South Korea.

For a company that just flipped the switch on one of the most strategically important mines outside China, Almonty Industries is getting a brutal reception from the stock market. But the bloodletting has almost nothing to do with the metal in the ground.

The tungsten producer's shares tumbled 11.79 percent on Wednesday to close at C$15.19, extending a slide that has pushed the 14-day relative strength index to 29.8 — territory that typically signals a stock is deeply oversold. The move came just days after a separate 8.40 percent drop on Tuesday, when the stock settled at C$17.22 and breached its 200-day moving average of C$19.21 by more than 10 percent.

The Real Reason Behind the Rout

What looks like a classic sell-off is actually a mechanical unwind driven by corporate housekeeping. Almonty is in the middle of a two-pronged exit from secondary stock exchange listings, and the forced selling from index-tracking funds is overwhelming the fundamental picture.

The company received approval on July 23 for a voluntary delisting from the Australian Securities Exchange, following an earlier announcement that it would also leave the Toronto Stock Exchange. The TSX departure takes effect at the close of trading on July 31, while the ASX exit is expected to be finalized by September 1. That leaves Almonty with just two trading venues — the Nasdaq under ticker ALM and Frankfurt under ALI1 — where the vast majority of trading volume already occurs.

The problem is the gap between the strategic logic and the market mechanics. Consolidating listings saves administrative costs and makes sense for a growing company. But in the short term, it forces funds with mandates tied to TSX or ASX listings to liquidate their positions, regardless of how the underlying business is performing.

A Regional Headwind Adds Pressure

Those forced sales are hitting a stock that's already caught in a regional downdraft. South Korea's KOSPI index has suffered a historic sell-off, triggering multiple circuit breakers as leveraged positions were liquidated. Almonty's crown jewel — the Sangdong mine — sits in South Korea, and the stock is absorbing collateral damage from the broader market panic.

Deutsche Rohstoff AG, a significant shareholder, recently added to the selling pressure by offloading 5 million Almonty shares at an average price of roughly US$16. The German resource holding company still retains about 5.5 million shares along with convertible bonds and loans, but the sale has contributed to the downward momentum.

The Numbers Tell Two Stories

Zoom in on the past week and the picture looks grim. Zoom out, and the narrative flips. Despite the recent carnage, Almonty shares are still up 25.85 percent year-to-date. The 12-month gain stands at a staggering 223.19 percent from the stock's low point last year.

From the April peak of C$33.35 — the 52-week high — the stock has now retreated 48.37 percent. But that peak came before the delisting announcements triggered the current wave of forced selling, which has little to do with the company's operational trajectory.

Sangdong Is Running

While the stock market drama unfolds, the operational story is moving in the opposite direction. Almonty's processing plant at the Sangdong mine in South Korea began operations on July 1, transitioning the project from development into active production of tungsten concentrate.

The first phase is designed to process 640,000 tonnes of ore annually. A long-term offtake agreement with Global Tungsten & Powders, recently extended to 21 years, covers the majority of planned output. At current ammonium paratungstate prices, that contract is expected to generate substantial annual revenue.

Tungsten is classified as one of the most critical metals for defense and industrial applications. China dominates global production, and Almonty has spent years positioning itself as the primary alternative outside Chinese supply chains. That narrative is now becoming operational reality — just as the stock is being hammered by administrative mechanics.

What Comes Next

The forced selling from TSX- and ASX-linked funds is a finite process. Once those positions are fully liquidated, the artificial pressure on the stock should dissipate. Australian CDI holders have until August 28 to either sell on the ASX or convert their holdings into regular shares that would trade on the Nasdaq or in Frankfurt.

With a market capitalization of €3.32 billion, Almonty remains a heavyweight in the critical minerals space. The current sell-off has all the hallmarks of a transitional friction — delisting mechanics and regional market turbulence obscuring the fundamental value of a mine that has only just begun to deliver. The real test will come once the administrative noise clears and the market can focus on whether Sangdong's ramp-up can translate the offtake agreement into actual earnings.