Almonty Posts $181.8M Q2 Profit on Record Tungsten Prices and $800M Convertible Notes

Record Tungsten Prices Fuel Massive Revenue Jump

Almonty Industries Inc (ASX:AII, Nasdaq:ALM) delivered a remarkable financial performance in the second quarter of 2026, posting revenue of CAD 42.99 million, a 498% increase year-over-year from CAD 7.19 million in Q2 2025. This surge was propelled by the European ammonium para tungstate (APT) price rocketing to around US$3,075 per metric tonne unit (MTU), up from US$453 per MTU a year earlier. The price spike transformed Almonty’s mining operations from loss-making to highly profitable, with income from mining operations reaching CAD 26.1 million compared to a loss of CAD 0.9 million in the prior period.

Net income soared to CAD 181.8 million for Q2 2026, a dramatic swing from a CAD 58.2 million loss in Q2 2025. Much of this gain stems from non-cash accounting adjustments related to the revaluation of convertible instruments, including a CAD 204.4 million gain on embedded derivative liabilities partially offset by CAD 30.7 million in derivative asset losses and warrant liability losses. Despite these accounting nuances, the underlying operational metrics tell a story of a business capitalising on a rare price environment.

Sangdong Mine Ramps Up Amid Expansion Plans

Almonty’s flagship Sangdong tungsten mine in South Korea began commercial production in December 2025 and is currently in commissioning and ramp-up phases. The mine is targeting an ore throughput of approximately 640,000 tonnes per year in Phase I, with a fully permitted Phase II expansion planned to boost capacity to 1.2 million tonnes annually. This expansion could come online as soon as 2027, subject to operational success and market conditions.

Supporting this growth, Almonty recently amended its long-term offtake agreement with Global Tungsten & Powders LLC, a member of Austria’s Plansee Group. The deal extends the contract term by six years, increases contracted volumes by 40%, and improves pricing by about 6.3%, cementing a secure revenue stream for Sangdong’s output. This move aligns with Almonty’s strategic positioning as a key Western-aligned supplier amid tightening global tungsten supply chains.

Robust Balance Sheet Backed by $800 Million Convertible Notes

In June 2026, Almonty closed an oversubscribed offering of US$800 million aggregate principal amount of 2.25% convertible senior notes due 2031, including the full exercise of a US$100 million over-allotment option. The proceeds have bolstered Almonty’s cash position to CAD 1.23 billion as of June 30, 2026, up from CAD 268 million at the end of 2025, giving the company substantial financial flexibility to advance multiple projects concurrently.

The convertible notes feature a conversion price of approximately US$27.40 per share and allow Almonty to settle conversions in cash, shares, or a combination thereof. The company has also entered into a capped call transaction to hedge potential dilution from the convertible notes. Subsequent to quarter end, Almonty fully repaid its EUR 14.7 million term loan with KfW IPEX-Bank, further strengthening its debt profile.

Operational Footprint and Strategic Moves

Beyond Sangdong, Almonty continues to mine and ship tungsten concentrate from the Panasqueira Mine in Portugal, which saw a production decline but benefited from soaring concentrate prices. The company is also evaluating expansion opportunities at Panasqueira, as well as developing the Gentung Tungsten Project in Montana, USA, acquired in late 2025.

Reflecting its strategic pivot towards the US market and Western supply chains, Almonty relocated its corporate headquarters from Toronto to Dillon, Montana in April 2026. The move places management closer to key US stakeholders, including government agencies and defense contractors.

In a cost-saving and strategic streamlining move, Almonty voluntarily delisted from the Toronto Stock Exchange effective July 31, 2026, and secured approval to delist from the Australian Securities Exchange, expected by September 1, 2026. The company remains listed on Nasdaq and Frankfurt exchanges.

Internal Controls and Risk Factors

Despite the strong financial results, Almonty disclosed ongoing material weaknesses in its internal controls over financial reporting, primarily related to segregation of duties and system data integrity. Management is actively implementing remediation measures, including expanding the finance team and engaging external consultants, with expectations to substantially complete assessments by Q3 2026.

The company also faces typical mining sector risks such as commodity price volatility, geopolitical supply constraints given China’s dominant role in tungsten markets, operational ramp-up challenges, and regulatory uncertainties in foreign jurisdictions.