Almonty's $300 Million Share Buyback Lands as Tungsten's Strategic Value Comes Into Focus
Published on 08/18/2026 at 21:20 | Redaktion boerse-global.de
The tungsten producer Almonty Industries is sending a clear signal about its own valuation just as the geopolitical calculus around critical minerals shifts. On August 17, 2026, the company's board authorized a buyback of up to 14.4 million common shares — roughly five percent of outstanding equity — with a budget of $300 million spread across 36 months. The program takes effect on August 24, 2026, and runs through August 24, 2029.
Management framed the repurchase as a response to a disconnect between the prevailing share price and the intrinsic worth of its tungsten assets. That argument carries added weight given the timing: Washington has recently imposed procurement bans on certain Chinese raw materials for the defense sector, and Almonty has positioned its Sangdong mine in South Korea as one of the largest and highest-grade tungsten deposits outside China — a strategic answer to precisely that supply-chain gap.
The market took notice immediately. On the day of the announcement, the stock traded between $15.53 and $16.32, well above its session low, and the broader move following the news was a gain of 6.3 percent.
A Split Screen Among Institutional Investors
Fresh 13F filings paint a picture of divergent conviction among large shareholders. During the second quarter of 2026, 136 institutional investors increased their Almonty positions while 76 trimmed theirs.
BlackRock emerged as the most prominent buyer, acquiring just over 6 million shares at an estimated cost of $100.6 million. Price T Rowe Associates invested roughly $94.7 million in nearly 5.7 million shares, while T. Rowe Price Investment Management separately deployed around $83.6 million for just over 5 million shares.
When your business depends on critical materials and complex operations, documenting workplace risks properly is just as essential as managing your balance sheet. A free toolkit with 41 ready-to-use templates and checklists helps you keep your risk assessments current and legally sound. Download the free Risk Assessment Toolkit
The sellers tell a different story. Cooper Creek Partners Management liquidated its entire holding of 4.78 million shares for approximately $79.2 million. Encompass Capital Advisors also exited completely, selling around 4.3 million shares worth $71.2 million. Goldman Sachs Group cut its position by 80.2 percent, removing roughly $66.1 million from its book.
The Fundamentals Behind the Confidence
The buyback doesn't stand in isolation — it follows a quarter that transformed the company's financial profile. Revenue in Q2 2026 jumped nearly fivefold year over year to $43 million. Even more striking, Almonty swung from a net loss of $58.2 million in the prior-year period to net income of $181.8 million. Adjusted EBITDA climbed to $17.6 million, reversing a negative $4.8 million a year earlier.
That revenue surge was driven primarily by rising tungsten prices rather than new production from Sangdong, which remained in its commissioning and ramp-up phase at quarter's end. The established Panasqueira mine in Portugal continued to supply the bulk of revenue.
The balance sheet has also been transformed. As of June 30, 2026, Almonty held $1.23 billion in cash and equivalents, up from $268.4 million at the end of 2025. Most of that increase traces back to a convertible bond offering completed on June 9, 2026 — a 2.25 percent coupon instrument maturing in 2031 that was oversubscribed, with initial purchasers fully exercising their option for additional notes, generating gross proceeds of $800 million.
Sangdong Ramp-Up and the Analyst View
Operationally, Almonty started processing at Sangdong in July and shortly thereafter expanded a long-term offtake agreement that the company says should deliver better pricing and higher contracted revenue at current market prices.
Wall Street has largely stayed constructive. Three analysts have published price targets over the past six months, with a median of $25. The most recent call is a "Buy" with a $33 target. Not every assessment is glowing, however: TipRanks' AI-driven analyst Spark rates the stock neutral, citing persistent high losses and ongoing cash burn despite improved revenue and a stronger debt profile. Technical indicators remain weak, with the shares in a downtrend and negative momentum.
The buyback arrives at a moment when Sangdong's contribution to financial results is still largely pending. Whether the combination of fund inflows and share repurchases closes the valuation gap Almonty itself has identified remains an open question — skeptics continue to weigh the company's loss-making history against its more optimistic production narrative.
