Almonty Industries launches a US$300 million share repurchase program over three years, aiming to capitalise on undervalued shares ahead of full capacity at its Sangdong mine.
- US$300 million buyback authorised over 36 months
- Up to 14.4 million shares, about 5% of float
- Repurchase to reflect undervaluation of tungsten assets
- Sangdong mine ramp-up driving growth prospects
- Use of Rule 10b5-1 plans for blackout period purchases
Almonty Targets Share Price Disconnect with US$300 Million Buyback
Almonty Industries (ASX:AII, NASDAQ:ALM) has greenlit a substantial new share repurchase program worth up to US$300 million, signalling management’s conviction that the market is underpricing the company’s strategic tungsten assets. The buyback, approved by the board and commencing August 24, 2026, will run for three years and allow the company to acquire up to 14.4 million shares, roughly 5% of its outstanding stock.
Lewis Black, Almonty’s Chairman and CEO, emphasised the timing of the program, highlighting the advancing ramp-up of the Sangdong Tungsten Mine in South Korea. He pointed to the mine’s status as one of the world’s largest and highest-grade tungsten deposits outside China, a critical factor amid Western efforts to secure non-Chinese supply chains for defence and advanced technology sectors.
Strategic Positioning Amid Rising Tungsten Demand
The repurchase program is clearly designed to capture value from what management perceives as a disconnect between the company’s share price and its underlying asset value and growth trajectory. This comes at a time when global tungsten demand is underpinned by geopolitical tensions and supply chain realignments, with tungsten’s role in armour, munitions, and electronics manufacturing becoming increasingly vital.
Almonty’s flagship Sangdong mine is approaching full production capacity, positioning it as a key supplier in the global non-China tungsten market. The company’s operations in Portugal, Spain, and the United States further diversify its portfolio and align it with Western allies’ critical minerals strategies.
Program Structure and Execution Flexibility
The buyback will be executed primarily through open market purchases on the Nasdaq Stock Market and alternative trading platforms, adhering to market regulations including the safe harbour provisions of Rule 10b-18 under the U.S. Securities Exchange Act. Notably, Almonty may employ Rule 10b5-1 trading plans, allowing share repurchases during blackout periods under prearranged parameters, providing flexibility and regulatory compliance.
The company retains discretion over the timing and volume of purchases and may amend, suspend, or discontinue the program as market conditions and legal requirements dictate.
Capital Allocation Amid Recent Financial Momentum
This buyback initiative follows a period of strong financial momentum for Almonty, including a surge to a CAD 181.8 million profit in Q2 2026 driven by record tungsten prices and the ramp-up of Sangdong operations. The company also recently completed a significant US$800 million convertible notes offering, bolstering its balance sheet to support ongoing development and growth.
With the delisting from the Toronto Stock Exchange completed and trading focused on Nasdaq, Almonty is streamlining its market presence to better align with its investor base and liquidity.
Bottom Line?
Almonty’s sizeable buyback program underscores management’s confidence in its undervalued tungsten assets and growth potential, but execution will depend on market conditions and the pace of Sangdong’s ramp-up.
Questions in the middle?
- How aggressively will Almonty deploy capital under the repurchase program amid fluctuating tungsten prices?
- What impact will the Sangdong mine reaching full capacity have on the company’s earnings and share price?
- Could geopolitical shifts further elevate demand for Almonty’s conflict-free tungsten supply?