Almonty's All-In Bet on Western Tungsten: $800M Convertible, New CFO, and a Share Price That Can't Catch a Break

Almonty Industries closes $800M convertible note, confirms board, and joins Russell 1000/3000, but stock falls 5%, highlighting a disconnect between strategic gains and market sentiment.

Almonty Industries capped a frantic week with a fully subscribed $800 million convertible note, a board vote confirming its leadership, and an imminent Russell index entry — yet the stock ended the session nursing a fresh five-percent loss. The disconnect between strategic momentum and market sentiment has never been starker for the Canadian tungsten miner.

Since June 1, Jorge Beristain has taken over as chief financial officer, working directly with chairman and CEO Lewis Black. The annual general meeting on June 9 formally ratified the new seven-member board and appointed Zeifmans LLP as auditor, giving management a clear mandate for the next growth phase. Simultaneously, Almonty shifted its corporate headquarters from Toronto to Dillon, Montana — a move designed to deepen ties with U.S. defense and technology supply chains.

The centerpiece of the financing is a 2.25% convertible note maturing in 2031. Originally targeting $700 million, the deal swelled to $800 million after full exercise of a $100 million overallotment option. Net proceeds came in at roughly $772.7 million. Management will channel about $543 million into working capital and general corporate purposes, including potential acquisitions; $83 million toward capped-call transactions to limit shareholder dilution; and the remaining $50 million to refinance existing debt.

Sangdong in South Korea remains the strategic linchpin. One of the world's largest and highest-grade tungsten deposits, the historical mine is being ramped up to reduce Western reliance on Chinese supply — a geopolitical priority that gives Almonty an outsized profile. The company also operates the Panasqueira mine in Portugal and holds projects in Spain and the United States.

Index inclusion arrives on June 29, when Almonty enters both the large-cap Russell 1000 and the broad-market Russell 3000. The listing typically triggers passive fund buying and lifts institutional visibility, though it has done little to arrest the share price slide so far.

The stock closed at C$21.08 on Wednesday, extending a one-month decline of more than 26%. That leaves it well below the 50-day moving average of C$26.76 and roughly 37% beneath April's all-time high of C$33.35. The relative strength index has slipped to 36.2, flirting with oversold territory, while annualized 30-day volatility exceeds 100% — a measure of the violent swings in both directions. Over twelve months the picture is more encouraging: the shares have still advanced 335%.

Analysts remain constructive. Oppenheimer raised its price target to US$25.00 on June 3 and maintains an outperform rating; B. Riley also stays positive. Both point to the long-term potential of Sangdong once production milestones materialize.

Tungsten is classified as a critical mineral for defense, munitions, and electronics manufacturing. With the financing locked in and a fresh CFO in place, Almonty's ambition to become one of the few significant non-Chinese tungsten suppliers is closer than ever — but the market, for now, is demanding proof in production rather than promise on paper.