Almonty Industries arrived at the second quarter at the center of the tungsten market's most violent repricing in a generation. The company is a conflict-free tungsten concentrate producer - the rare listed pure-play on a metal China dominates roughly 80% of - and the world caught up to it in 2025, when Beijing's export controls sent European ammonium paratungstate (APT) prices from about US$330 per metric tonne unit at the start of 2025 to roughly US$3,075 by the middle of 2026, nearly a tenfold move. The surge, layered on top of the commissioning of its flagship Sangdong Mine in South Korea, is what this quarter is about: for the first time, Almonty's long-built earnings potential showed up in a real operating result. Financial figures here, drawn from the company's Canadian-dollar statements, are converted at approximately US$0.72 per C$1.
The headline is flattering and needs to be read twice. Revenue rose 498% year over year to US$31.0 million (C$43.0 million), and net income swung to US$130.9 million (C$181.8 million) from a US$41.9 million loss a year earlier. But most of that net income - US$124.7 million (C$173.1 million) - is a non-cash fair-value gain on the revaluation of the convertible note and warrant instruments the company issued in the quarter, an accounting artifact that did not touch the operating business. Strip it out and the real story is an operation turning its first meaningful profit: income from mining operations of US$18.8 million (C$26.1 million) on a 60.7% gross margin, and US$12.6 million (C$17.6 million) of adjusted EBITDA against a loss a year ago.
The quarter also rewrote the balance sheet. Almonty closed an oversubscribed US$800 million offering of 2.25% convertible senior notes due 2031 in June, leaving it with roughly US$883 million (C$1.2 billion) in cash - firepower to fund the Sangdong Phase II expansion, a tungsten oxide processing plant in South Korea, the Gentung project in Montana, and a Panasqueira extension in parallel rather than in sequence. The question the next several reports answer is the one that defines the whole investment case: is this the beginning of durable, price-driven earnings power, or a snapshot of a tungsten spot price that history says does not stay this high - with the Sangdong ramp still to prove it can fill what the price surge has started?