Almonty Banks $773M Convertible and Turns Cash Flow Positive as Tungsten Price Rally and Russell Inclusion Reshape the Narrative

The tungsten pure‑play has delivered a week of multiple inflection points. Almonty Industries not only pulled off an oversubscribed convertible note raise of $800 million but also swung to positive operating cash flow for the first time since the Sangdong mine started commercial production. The stock closed Friday at C$24.75, up more than 4% on the day, and has more than doubled since the start of the year.

$800M Convertible Note Sealed Despite Market Jitters

Investor demand for Almonty’s debt offering was fierce. The company placed $700 million in 2.25% convertible senior notes due 2031, and underwriters fully exercised the greenshoe option for an additional $100 million. Net proceeds came to approximately $772.7 million after fees and expenses. A portion of the proceeds will fund capped‑call transactions designed to limit equity dilution, with the remainder earmarked for refinancing existing debt and general working capital.

First‑Quarter Numbers Show a Turnaround

The operational milestones are now translating into financial momentum. For the first quarter of 2026, revenue surged 221% to $25.4 million. Operating cash flow flipped from negative $4.4 million in the year‑ago period to positive $9.7 million. The net loss shrank to $5.3 million, compared to a $34.6 million loss in Q1 2025. The driver is the Sangdong mine in South Korea, where Phase 1 is processing around 640,000 tonnes of ore annually and producing roughly 2,300 tonnes of tungsten concentrate.

New CFO Brings Street Credibility

Alongside the financial firepower, Almonty refreshed its management team. Jorge Beristain, CFA, assumed the role of CFO on June 1. He previously served as Vice President Finance at Ryerson Holding Corp, a NYSE‑listed metals services company with roughly $5 billion in sales, where he helped double the market capitalisation. Before that, he spent years as Managing Director and head of metals and mining equity research for the Americas at Deutsche Bank Securities — one of the most cited voices in the sector.

Shareholders also overwhelmingly backed the board slate at the annual general meeting on June 9, re‑electing all seven directors with over 99% approval. Auditors Zeifmans LLP were reappointed with the same margin. Notably, several independent directors bring extensive US defence and security backgrounds, including retired senior US Army generals.

Montana Project Advances as Pentagon Deadline Looms

With Sangdong already in production, Almonty is racing to establish a second Western supply hub. The company now owns 100% of the Gentung‑Browns Lake tungsten project in Beaverhead County, Montana. It expects to achieve production readiness in the second half of 2026. The facility is designed for roughly 140,000 metric tonne units of annual capacity.

Should investors sell immediately? Or is it worth buying Almonty?

The timing is no accident. Starting in January 2027, the Pentagon will no longer be allowed to source tungsten from China. Almonty has already relocated its corporate headquarters to Dillon, Montana, and is working with American Defense International and the US Congress to position itself as a domestic alternative.

Tungsten Prices Explode on Chinese Export Controls

The commodity tailwind is dramatic. Since China imposed export controls early in 2025, the European ammonium paratungstate (APT) price has surged by more than 550%. APT now trades above $3,100 per metric tonne unit (MTU), up from below $1,900 in February. The constraint on Chinese supply has directly benefited Almonty, which offers one of the few non‑Chinese sources of tungsten concentrate.

At Sangdong, Phase 2 is slated for 2027 and will double processing capacity to 1.2 million tonnes per year. At full tilt, the mine could meet roughly 40% of global tungsten demand outside China. Longer term, Almonty is pursuing a fully integrated value chain that includes a tungsten oxide plant and development of the adjacent molybdenum deposit.

Russell Inclusion Triggers Passive Buying

Starting June 29, Almonty will be added to both the Russell 1000 and Russell 3000 indices. The move will force ETFs and index funds tracking those benchmarks to accumulate shares. Market observers expect institutional buying in the double‑digit millions of shares.

Technically, the stock still sits about 8% below its 50‑day moving average of C$26.91 and roughly 26% off its 52‑week high of C$33.35. The structural re‑rating that began with the year‑to‑date gain of more than 400% still has room to run, especially if the index‑driven inflow materialises as expected. For now, the combination of a strengthened balance sheet, a cash‑flow‑positive operating base, and a defence‑driven supply narrative gives the bull case more than just a price chart to lean on.