Almonty’s $1.23 Billion War Chest Raises the Stakes on Tungsten Delivery

The balance sheet now tells a story that headlines have struggled to capture. Almonty Industries closed the second quarter with $1.23 billion in cash, a staggering leap from the $268.4 million it held at the end of 2025. For a company that spent years as a capital-hungry mine developer, the transformation into one of the best-funded players in the critical minerals space has been nothing short of abrupt.

That financial firepower traces back to a single event: the completion of a $800 million convertible bond placement on June 9, 2026, which the company said was heavily oversubscribed. Rather than funneling the proceeds into one flagship operation, management has spread the capital across four parallel initiatives — the Phase II expansion at Sangdong, the tungsten oxide plant in South Korea, the Gentung project in Montana, and an expansion at Panasqueira. It is an unusually broad bet for a company of this size, and it underscores a deliberate ambition: to build a multi-site Western counterweight to China’s grip on tungsten supply.

The operating numbers released in early August lend credibility to that ambition. Revenue surged 498 percent year-over-year to $43.0 million, and climbed 69 percent sequentially. Mine operating income reached $26.1 million, while adjusted EBITDA came in at $17.6 million — an improvement of more than $22 million against the prior-year quarter. Net income swung to $181.8 million from a loss of $58.2 million in the comparable period.

Jefferies took notice. On September 2, the bank initiated coverage with a Buy rating and a $26.25 price target, citing Almonty’s strategic position in Western tungsten supply chains through Sangdong, Panasqueira, and the Browns Lake project. The timing appears to have helped draw fresh institutional attention to the stock.

A Buyback That Reads as Confidence, Not Contradiction

On its face, repurchasing shares while simultaneously funding an aggressive multi-project expansion might seem counterintuitive. But with more than a billion dollars in cash on hand, the buyback program announced in late August — authorizing the repurchase of up to 14.4 million common shares, roughly 5 percent of outstanding stock, over 36 months — looks less like a capital allocation dilemma and more like a deliberate signal of conviction in the company’s own valuation.

The structural cleanup has continued in parallel. Almonty’s delisting from the Australian Securities Exchange took effect on September 1, following the suspension of its CHESS Depositary Interests in late August. Trading volumes in Sydney had dwindled to a negligible fraction of overall activity compared with the Nasdaq and the Toronto Stock Exchange. For a company whose investor base has increasingly shifted toward North American markets, the move was administrative logic rather than retreat — though the stock did slip 2.9 percent in the days following the final delisting, a move more consistent with broader market jitters than any fundamental concern.

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

The Contract That Quietly Matters More

Amid the delisting headlines, a strategically weightier development received comparatively little attention. The offtake agreement for the Sangdong mine with GTP has been extended to 21 years, with total volume increased by 40 percent to 4.41 million metric tonnes of tungsten units, including a guaranteed minimum offtake of 210,000 mtu per year. For a company whose value thesis rests on long-term revenue visibility, that contract extension arguably matters far more than any exchange listing structure.

The market’s reaction to the Jefferies initiation was telling in its own way: shares fell 5.2 percent on the day of the coverage announcement, suggesting expectations had already been priced in or that some investors chose to lock in gains. It was a reminder of how news-sensitive this stock remains — and how little short-term price action reveals about the underlying trajectory.

Reading the Gap From the High

The stock currently trades at €14.82, roughly 28 percent below its 52-week high of €20.61, which was set in mid-April. Over the past seven trading sessions, shares have shed 2.7 percent, though they remain up 31 percent on a monthly basis. The pullback from the peak has done little to dent the longer-term picture: the stock has gained roughly 310 percent over the past twelve months.

That gap between the April high and today’s price reflects a consolidation phase following an extraordinary run, rather than a fracture in the investment case. The structural leap — driven by the capital raise, quarterly results, and analyst coverage — occurred weeks ago, and the recent sessions have been characterized more by digestion than by deterioration.

The central question for investors has shifted. It is no longer whether Almonty has sufficient capital to execute its four simultaneous projects; the balance sheet has answered that. The more pertinent test is whether management can deliver operational execution at a pace that justifies such an exceptional cash position — and whether the market will continue to reward the Western tungsten alternative thesis with the same conviction it showed over the past year.