Almonty Puts $300 Million on the Table in Three-Year Buyback as Tungsten Rally Reshapes Its Numbers

Almonty launches $300M buyback after Q2 revenue jumps 498% on strong tungsten prices and $800M convertible note raise.

The tungsten producer's balance sheet has been transformed by a surge in prices and a hefty capital raise, and management is now betting a slice of that firepower on its own stock. Almonty Industries has secured board approval to repurchase up to 14.4 million common shares — roughly five percent of outstanding equity — over a 36-month window, with the program capped at $300 million.

The announcement, greenlit on August 17, landed as the company's operational turnaround gathers pace. Second-quarter 2026 revenue hit C$43 million, a 498 percent leap from the C$7.2 million posted a year earlier and a 69 percent improvement over the first quarter. Adjusted EBITDA swung from a negative C$4.8 million to a positive C$17.6 million, while mining segment earnings reached C$26.1 million against a C$0.9 million loss in the prior-year period, supported by a 60.7 percent gross margin in that division.

The headline net income figure of C$181.8 million — versus a C$58.2 million net loss in Q2 2025 — deserves a closer look. Roughly C$173.1 million of that came from non-cash gains tied to the revaluation of derivatives and warrants, meaning the underlying operating story is solid but less spectacular than the bottom line alone suggests.

What's driving the operational lift? The Sangdong mine in South Korea is scaling up just as European ammonium paratungstate prices have climbed from around $453 per MTU last year to roughly $3,075 per MTU, with demand for the metal increasingly linked to AI-related applications. Management points to a perceived gap between the share price and the value of its tungsten assets, particularly with Sangdong's processing capacity ramping into that favorable pricing environment.

The buyback also rests on a much stronger capital structure than the company had just months ago. A mid-June offering of convertible senior notes — carrying a 2.25 percent coupon and maturing in 2031 — pulled in $800 million in gross proceeds, including full exercise of the greenshoe option. That left Almonty holding $1.2 billion in cash as of June 30, up from $268.4 million at the close of 2025. A July amendment to its supply agreement with Global Tungsten & Powders LLC extended the term by six years, lifted contracted volumes by 40 percent, and improved pricing terms by roughly 6.3 percent.

Shareholder activity in the second quarter painted a picture of institutional conviction. BlackRock, T. Rowe Price Associates, and T. Rowe Price Investment Management all built positions worth tens of millions of dollars, with 136 institutional investors adding to holdings while 76 trimmed. That inflow stands in contrast to director Mark Trachuk's early-July sale of 200,000 shares at $24.070 each — a $4.814 million transaction that reduced his stake by 7.4 percent. The insider sale is a single data point, though, set against broader accumulation and a share price that has trended higher over time.

The buyback arrives amid structural changes to how the stock trades. Almonty completed its voluntary delisting from the Toronto Stock Exchange at the close of July 31, and its Australian CHESS Depositary Interests are slated to leave the ASX at the close of August 28, with delisting expected September 1. That leaves Nasdaq under the ticker "ALM" and Frankfurt under "ALI1" as the remaining venues. The consolidation of liquidity at fewer exchanges is widely read as an effort to sharpen visibility among US investors — a logical move for a company producing a metal classified as critical. The stock's late-June inclusion in both the Russell 1000 and Russell 3000 indexes underscores the growing market cap and trading depth behind that strategy.

Market reaction to the buyback news was muted in Canada — the shares held near C$15.51 on the TSX — but more enthusiastic on Nasdaq, where the stock advanced 4.64 percent to $18.51. That mixed response comes after a volatile stretch: the 52-week range spans C$5.35 to C$33.35, and the stock had given back roughly a fifth of its value since the TSX delisting date before the buyback announcement added fresh momentum.

Analyst expectations remain constructive despite the swings. A price target of C$27.80 implies upside of 79.2 percent from the recent Canadian trading level of C$15.51. Whether the buyback program — which management frames as a signal that the equity remains undervalued even after recent gains — can help close that gap is the question now hanging over the stock.