Almonty's Billion-Dollar Quarter: How a Convertible Note and a Tungsten Price Surge Reshaped the Balance Sheet

Almonty's Q2 2026 revenue jumps 498% to $43M, but profit driven by non-cash gains. $800M convertible note funds Sangdong and Portugal growth.

The numbers landing on Almonty Industries' second-quarter 2026 income statement are the kind that usually demand a double take. Revenue of $43.0 million, up 498 percent year over year. Net income swinging from a $58.2 million loss to a $181.8 million profit. Adjusted EBITDA flipping from negative $4.8 million to positive $17.6 million. On the surface, it reads like a company that has simply hit its stride.

Dig one layer deeper, though, and the picture becomes more nuanced. Roughly $173.1 million of that net income — the vast majority — came from non-cash revaluation gains on derivatives and options. The operational improvement is genuine, but the headline profit figure flatters the underlying business. Diluted earnings per share landed at $0.62, against a loss of $0.30 in the same period last year.

The real story sits in the company's war chest and its production pipeline. Almonty secured a convertible note worth $800 million, carrying a 2.25 percent coupon and maturing in 2031, bringing total liquidity to approximately $1.23 billion. CEO Lewis Black framed the instrument as the cornerstone of a multi-year financing strategy spanning expansion efforts in the United States and Portugal, while also underpinning the continued build-out of the Sangdong mine in South Korea.

That mine is where the operational narrative converges. Sangdong has been in production for just over a month, having started output at the end of June, and is now described by management as being in early commercial production. The project is designed to reach 640,000 tonnes per year in Phase 1, with an approved Phase 2 that could push capacity to 1.2 million tonnes annually. It also sits at the center of a geopolitical dynamic that has sharply boosted its strategic value: China controls roughly 80 percent of global tungsten production, making Western supply sources like Sangdong increasingly attractive to buyers and policymakers alike.

The pricing environment has compounded that tailwind. Ammonium paratungstate (APT) prices averaged $3,075 per MTU in the second quarter, compared with just $453 per MTU in the year-ago period. That near-sevenfold increase explains a substantial portion of the revenue surge and, if sustained, should provide meaningful margin support as Sangdong scales.

Demand visibility has also improved. The offtake agreement with customer GTP has been extended by six years, stretching the contract to a 21-year term. Volume under the agreement rises 40 percent, with pricing up 6.3 percent. At current prices, the company estimates the annual revenue potential from that contract at roughly $490 million.

The Portuguese side of the business adds another growth vector. Panasqueira posted first-quarter revenue of $25.4 million, up 221 percent, with EBITDA of $6.1 million — evidence that Almonty's geographic diversification is beginning to pay operational dividends.

Investors responded to the quarterly report and the financing news with an 8.3 percent share-price advance on Wednesday. Yet the stock still trades about 22 percent below its three-month high, a gap that reflects lingering market unease over the company's recent delisting from the TSX and ASX, as well as the early-stage nature of Sangdong's production ramp. Short sellers have taken notice: as of mid-July, roughly 6.6 percent of the float — about 19 million shares — was sold short, a positioning that has fueled speculation about a potential squeeze. Analyst price targets cluster between $16 and $22, against a recent share price of $13.70.

For context, the first quarter of 2026 saw Almonty post a loss per share of $0.02 on revenue of $25.40 million, beating consensus estimates of $22.99 million. The second-quarter revenue figure of $43 million came in within the $35 million to $50 million range analysts had flagged ahead of the release.

The balance sheet now carries substantial firepower, but it also carries a caveat. The convertible note, if converted, would dilute existing shareholders meaningfully — a risk that carries extra weight given the company's history of recurring losses. Inclusion in the Russell 1000 and 3000 indices at the end of June boosted institutional visibility, but the market's attention now turns to execution: whether Sangdong's ramp-up can translate the elevated tungsten prices and extended offtake agreements into sustained operational delivery. The next quarterly report, scheduled for August 17, will offer the first clear read on that question.