Almonty's $182 Million Quarter Comes With a Caveat — and a Contract Extension That Speaks Louder
Published on 08/13/2026 at 10:51 | Redaktion boerse-global.de
Investors scanning Almonty Industries' latest earnings release could be forgiven for doing a double-take. The Canadian tungsten producer reported a net profit of $181.8 million for the quarter ended June 30, 2026 — a staggering swing from the $58.2 million loss posted in the same period a year earlier. But buried in the fine print is a crucial distinction: roughly $173.1 million of that figure stems from non-cash revaluation gains on derivatives and warrants tied to convertible notes, not from mining operations.
Strip those out, and the picture becomes more measured — yet arguably more encouraging. On an adjusted GAAP basis, Almonty earned $0.10 per diluted share, matching the Zacks consensus estimate to the penny. The company's adjusted EBITDA came in at $17.6 million, a dramatic improvement from the negative $4.8 million recorded in the prior-year quarter.
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Revenue Surge Points to Sangdong's Growing Contribution
The headline numbers are hard to ignore. Revenue jumped 498% year over year to $43.0 million, and climbed 69% sequentially. The gains reflect both firmer tungsten prices and the first meaningful contributions from the Sangdong mine in South Korea's Gangwon-Do province, which remains in its commissioning and ramp-up phase.
Operating income from the mining business reached $26.1 million, reversing a loss in the year-ago quarter, while gross margin expanded to 60.7%. CEO Lewis Black described the period as a milestone, calling it a first taste of the earnings power the company has been building for over a decade.
The cash flow statement offers perhaps the clearest evidence of a genuine operational turnaround. Operating cash flow for the first half totaled $31.6 million, compared with a cash burn of $14.9 million in the same period last year.
A Beefed-Up Offtake Deal Stretches Into the 2040s
Alongside the earnings release, Almonty announced an expanded supply agreement with Global Tungsten & Powders, a unit of Austria's Plansee Group. The contract, covering tungsten concentrate from Sangdong's Phase I, has been extended from 15 to 21 years from first delivery, with contracted volumes rising 40% and prices improving by roughly 6.3%. Deliveries are now scheduled to run into the late 2040s.
Notably, the agreement covers only Phase I. The planned Phase II expansion — which would nearly double the mine's ore processing capacity from around 640,000 tonnes per year to as much as 1.2 million tonnes — remains outside the contract's scope, as do Almonty's other operations.
A $1.23 Billion War Chest and a Simplified Listing Structure
The company's balance sheet has been transformed by an oversubscribed $800 million convertible note offering completed on June 9, 2026. Cash and equivalents surged from $268.4 million at the end of 2025 to $1.23 billion as of June 30.
That financial firepower coincides with a deliberate consolidation of Almonty's public listings. The stock was delisted from the Toronto Stock Exchange on July 31, 2026, and the voluntary removal from the Australian Securities Exchange has been approved, with CDI trading ending August 28 and the delisting taking effect September 1. Management cited low and declining trading volumes in Australia relative to the Nasdaq. Following the ASX exit, shares will trade on the Nasdaq under the ticker "ALM" and on the Frankfurt exchange under "ALI1."
Diverging Views on Valuation
The market's response to the developments has been decidedly positive. On August 12, the stock climbed 8.2% to $14.37, though it remains well below its 52-week high of $24.41. The low end of that range sits at $3.97, underscoring just how volatile sentiment around the tungsten producer has been over the past year.
Wall Street appears increasingly convinced. Eleven analysts have issued 12-month price targets averaging $16.29, implying roughly 22.7% upside from current levels. That average has been revised upward by 12.4% over the past three months, with 84% of analysts rating the stock a buy. DA Davidson stands out as particularly bullish, lifting its target from $25 to $33 in July following a virtual roadshow with CEO Lewis Black. Analyst Matt Summerville cited progress at Sangdong, potential collaboration with the U.S. government, the strengthened balance sheet, and record tungsten prices.
Algorithmic models tell a different story. GuruFocus's GF Value estimate pegs fair value at just $1.34, suggesting the stock is overvalued by roughly 972%, with a middling GF Score of 53 out of 100.
That chasm between quantitative models and sell-side enthusiasm reflects the broader uncertainty surrounding Almonty's transition from mine developer to full-fledged tungsten producer. For now, the company's improving cash flows and extended offtake commitments offer tangible evidence of progress — even if the accounting noise from convertible-related derivatives will likely continue to distort net income figures in the quarters ahead.
