Almonty Switches On $300 Million Buyback as Sangdong Mine Shifts From Build to Production
Published on 08/24/2026 at 08:51 | Redaktion boerse-global.de
The tungsten producer's capital-return program officially kicked off on August 24, giving management the green light to repurchase up to 14.4 million common shares — roughly 5 percent of the outstanding float — for a maximum outlay of $300 million. The authorization, which runs through August 2029, was approved by the board on August 17, with directors pointing to a disconnect between the current share price and the intrinsic value of the company's strategic, non-Chinese tungsten assets.
That valuation gap has been narrowing in the market's eyes, but not for the reasons one might expect. The stock has actually shed around 21.3 percent since Almonty repaid its KfW loan in full — a deleveraging milestone that, while strengthening the balance sheet, failed to ignite the share price. The buyback now serves as a fresh, independent catalyst, signaling that management considers the equity undervalued even as the company transitions from construction phase to commercial operations.
A Balance Sheet Transformed in One Quarter
The financial firepower behind the repurchase program comes from a second quarter that rewrote the company's earnings trajectory. Revenue for the period ended June 30 reached C$43.0 million, a 498 percent jump year over year, while net income swung to C$181.8 million from a C$58.2 million loss in the comparable 2025 quarter. Adjusted EBITDA came in at C$17.6 million.
The headline profit figure, however, carries a caveat worth flagging: roughly C$173.1 million of that net income stemmed from non-cash mark-to-market gains on derivative instruments, meaning the underlying operational earnings are considerably more modest than the bottom line suggests. European APT tungsten prices, which averaged $3,075 per MTU during the quarter, provided the fundamental tailwind.
Cash on hand stood at C$1.23 billion as of June 30, bolstered by an oversubscribed $800 million bond issuance in June carrying a 2.25 percent coupon and maturing in 2031. That liquidity cushion enabled the full repayment of the KfW loan — completed roughly a month ago — and leaves ample room to fund the buyback without crimping growth capital expenditures.
Sangdong Hits Its Stride
The operational backdrop for the capital return is the Sangdong mine in South Korea, which has crossed the threshold into commercial production. The processing mill, completed in March, began commercial processing in July, drawing on an ore stockpile of 139,700 tonnes accumulated during the ramp-up phase — sufficient for approximately 2.6 months of operations. Phase I throughput is targeted at a steady 640,000 tonnes annually.
GBC AG analysts issued a buy rating on August 20 with a price target of $30.00 by year-end 2027, citing the mine's transition from construction to commercial processing of stockpiled ore as a pivotal moment.
Contract Extension Locks In Future Demand
Alongside the quarterly results released August 11, Almonty announced an expanded long-term offtake agreement with Global Tungsten & Powders LLC. The contract extension adds six years to the term, increases contracted volumes by 40 percent, and improves pricing terms by roughly 6.3 percent. At current prices, the contracted annual volume translates to an estimated $490 million in revenue — a figure that underpins the sustainability of the buyback program without constraining operational expansion.
Institutional Conviction Builds
The buyback arrives as institutional interest in the tungsten producer gathers pace. Bank of America disclosed in a regulatory filing that it increased its stake by 309.6 percent during the first quarter, lifting its position to 908,911 shares valued at approximately $13.2 million.
The next milestone for investors arrives November 15, when Almonty reports third-quarter results and delivers an operational update on the Sangdong ramp-up — the first full quarter of commercial production since the mine's transition.
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