Almonty Industries’ US$700m notes: funding Sangdong ramp-up explained for mine planners
Reviewed by Tom Sullivan
First reported on MINING.com
30 Second Briefing
Tungsten producer Almonty Industries is issuing US$700 million of 2.25% senior convertible notes, convertible at US$27.40 per share with a capped call at US$41.36, to fund about US$543 million of working capital plus US$50 million of debt refinancing, causing an 18% share price drop to roughly US$17.20. The notes, offered to qualified institutional buyers and settling on 9 June 2026, include an option for a further US$100 million. Funding supports ramp-up at the Sangdong mine in South Korea, where a 640,000 t/y plant targets 2,300 t/y tungsten concentrate, with Phase 2 aiming for 1.2 Mt/y and 4,600 t/y output.
Technical Brief
- Net proceeds are expected at US$675.9 million, rising to US$772.7 million if the US$100 million option is exercised.
- Initial purchasers’ US$100 million over-allotment option must be exercised within 13 days of first issuance.
- Almonty will spend about US$83 million on privately negotiated capped call transactions with note buyers.
- Capped call structure is intended to offset share dilution on conversion up to a US$41.36 cap price.
- Sangdong’s Phase 1 plant, commissioned March, is already operating post-December start-up towards commercial production.
- Phase 2 at Sangdong is targeted for next year, doubling both ore throughput and tungsten concentrate output.
- At full Phase 2 capacity, Sangdong is projected to supply ~40% of ex-China global tungsten demand.
Our Take
Almonty Industries’ plan for Sangdong to supply about 40% of ex-China tungsten demand aligns with its inclusion in Morgan Stanley’s “Space 60” list, signalling that this financing is likely being underwritten with aerospace and defence-grade tungsten applications in mind rather than just traditional tooling markets.
The move comes shortly after Almonty shifted its headquarters to Montana to sit closer to US tungsten assets, which, combined with this New York–priced note structure, indicates a deliberate pivot towards US capital markets and offtakers rather than relying on traditional Asian or European financing channels.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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