Almonty Secures Major Financing
Almonty Industries Successfully Prices Oversubscribed US$700 Million Convertible Senior Notes Offering
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Almonty Industries has priced an oversubscribed US$700 million offering of convertible senior notes, with the deal closing in just hours after it was announced, according to Financial Post. The notes carry a 2.25% annual interest rate and mature on July 1, 2031 — giving Almonty a long runway to build out what it calls the West's answer to Chinese tungsten dominance.
The timing is no accident. China controls roughly 79% of global tungsten production and slashed exports to the West by 40% in 2025, sending Rotterdam prices up 900% over 12 months to around US$3,185 per metric ton unit, Finance Yahoo reported. A U.S. federal ban on Chinese tungsten in defense contracts takes effect January 1, 2027 — and Almonty is positioning itself as the primary alternative supplier.
How the $700 Million Deal Is Structured
The notes convert to Almonty common shares at US$27.40 per share — a 32.5% premium over the June 4 closing price of $20.68, according to Barchart. That means investors only profit from conversion if the stock climbs significantly. The deal also includes an option for purchasers to buy an additional US$100 million in notes, which would push total net proceeds to roughly US$772.7 million.
Almonty plans to spend US$83 million of the proceeds on "capped call transactions" — a financial tool that raises the effective conversion price to US$41.36 per share. In plain terms, this protects existing shareholders from heavy dilution unless the stock nearly doubles. Another US$50 million goes toward paying off existing debt, with roughly US$543 million left for working capital and potential acquisitions, The Province reported.
Sangdong Mine Sits at the Center of the Strategy
Almonty's flagship asset is the Sangdong Mine in South Korea — once the world's largest tungsten producer before China undercut global prices and forced it to close in the 1990s. Almonty acquired it in 2015 and spent over US$100 million redeveloping it. In March 2026, CEO Lewis Black hosted a commissioning ceremony attended by more than 200 political figures and U.S. Embassy officials, Market Screener reported.
Black said Sangdong is "expected to become one of the largest and longest-life tungsten mines outside of China." At full Phase 2 capacity, the mine is projected to supply 40% of global tungsten demand outside China. That projection is a big part of why institutional buyers lined up to fund the deal.
Wall Street Is Split on Whether the Debt Load Makes Sense
The offering was oversubscribed — meaning more investors wanted in than there were notes to sell. Buyers reportedly included major pension funds from Australia and the Middle East. Oppenheimer raised its price target on Almonty stock to US$25.00 on June 3, calling the company the "primary beneficiary" of a tighter tungsten market. Bank of America set its target at US$23.00, citing the revenue boost from Phase 1 commissioning.
But skeptics point to a glaring number: US$700 million in new debt against a market cap of just ~US$325 million. On the morning of the announcement, Almonty shares dipped to $16.36, near a 52-week low. Some analysts warn the "oversubscribed" label may reflect investor hunger for yield in the critical minerals sector more than confidence in Almonty's current balance sheet, Fairview Post noted.
U.S. Defense Urgency Drives the Broader Play
Tungsten is used in armor-piercing ammunition, missile components, and cutting tools for military hardware. The looming 2027 U.S. procurement ban means the Pentagon needs a non-Chinese supplier — fast. Almonty reinforced its alignment with Washington by moving its headquarters from Toronto to Dillon, Montana in April 2026. The settlement date for the offering, June 9, coincides with the company's Annual General Meeting, Yahoo Finance UK reported.
The company's new CFO, Jorge Beristain, took the role on June 1 — just days before the offering was announced. With US$543 million earmarked for acquisitions and working capital, Almonty appears ready to consolidate other Western tungsten assets, including operations in Spain and Portugal, to further shrink the West's dependence on Beijing.
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