Almonty closes $129M placement as Sangdong ships its first tungsten in 30 years
What's the deal? AlmontyDealroom has a profile for this one. Try Dealroom → has completed an upsized post-IPO equity raise, pulling in gross proceeds of $129,375,000, just as its first commercial tungsten shipment in more than three decades left the Sangdong mine in South Korea. The placement covered 20,700,000 common shares at $6.25 each, with the overallotment option fully exercised.
Why now? The financing lands as Sangdong moves from commissioning toward commercial deliveries. Chief executive officer Lewis Black said the first commercial shipment departed on October 24, following the plant's first tungsten production since 1993.
What's the endgame? Proceeds are earmarked for project development and expansion, exploration, and general corporate purposes. A second expansion phase is underway, with equipment ordered and its impact expected next year.
What's underpinning sales? At an Investor Day on October 19, Black said the offtake agreement with Global Tungsten & Powders, a major Western producer of tungsten oxide, had been extended by six years at a higher price over the term, with the previous discount removed.
What could go wrong? The tungsten market is pulling in two directions. China's export controls have tightened Western availability and lifted prices, but Chinese ammonium paratungstate (APT) stood near US$64.6K per tonne on October 15 — roughly 69% below its mid-March peak — as weak demand weighed. A first delivery proves Almonty can ship, not what shipments will earn.
How do analysts read it? B. RileyDealroom has a profile for this one. Try Dealroom → cut its price target to $20 from $25 while keeping a buy rating — a still-positive view paired with more restrained valuation.
The signal: The raise ranks around the 95th percentile among all-time post-IPO equity rounds in Canadian energy, reflecting investor appetite for non-Chinese tungsten supply ahead of a US rule, effective January 2027, restricting defense procurement from designated countries. But its significance will depend on sustained production and deliveries — not the first shipment alone.
Read more: ad-hoc-news.de
Image credit: b3tarev3
