Almonty Industries Inc. reported a massive revenue jump for the second quarter of 2026, fueled by soaring tungsten prices. The company, currently ramping up its Sangdong mine in South Korea, ended the period with a significant C$1.2 billion cash reserve.
The surge to $3,075 per MTU tungsten prices
Almonty Industries Inc. saw its revenue skyrocket by 498% year-over-year to $43.0 million during the second quarter of 2026. as reported by the company, this massive growth was primarily fueled by a dramatic appreciation in the price of tungsten APT.. Specifically, the average price for European APT climbed to US$3,075 per MTU, a staggering increase from the US$453 per MTU recorded in the same quarter of 2025.
The revenue jump from $7.2 million in the previous year's quarter to $43.0 million in 2026 highlights the extreme sensitivity of Almonty's revenue to commodity pricing. This volatility is a double-edged sword; while it has propelled the company into a period of massive growth, it also underscores the risks inherent in being a pure-play tungsten producer. The company's gross profit margin now stands at 60.7% of revenue, a testament to the current pricing environment.
Scaling the Sangdong mine to 640,000 tonnes per year
The Sangdong tungsten mine in South Korea is currently in its critical commissioning and ramp-up phase. Almonty Industries Inc. is targeting an ore throughput capacity of 640,000 tonnes per year as it moves through Phase I of operations. CEO Lewis Black noted that these rseults offer a "first look" at the earnings power the company has been building toward for more than ten years.
To secure long-term stability for this production, the company recently amended its offtake agreement with Global Tungsten & Powders LLC. According to the company's financial report, this amendment extennds the contract term by six years and increases the total volume of contracted materials by 40%. This move provides a clearer roadmap for the Sangdong mine's output as it reaches full capacity.
A C$1.2 billion cash position and Russell 1000 entry
Almonty Industries Inc. has significantly strengthened its balance sheet , ending the quarter with C$1.2 billion in cash. This liquidity was bolstered by a successful, oversubscribed US$800 million offering of 2.25% convertible senior notes due in 2031. CFO Jorge Beristain highlighted that these results demonstrate a business with "substantial operating leverage."
This financial strength helped the company achieve a major institutional milestone: joining both the Russell 1000 and the Russell 3000 Indexes following the 2026 reconstitution. Furthermore, the company utilized its capital to fully repay its KfW term loan following the close of the quarter, further cleaning up its debt profile and providing substantial financial flexibility to advance its growth pipeline.
The $173 million non-cash gain and earnings volatility
While the reported net income reached a massive $181.8 million, much of this figure is tied to accounting adjustments rather than direct mining sales. The company reported that $173.1 million of that total came from non-cash gains related to the revaluation of derivative and warrant instruments under IFRS fair value accounting.
This creates a significant gap between the reported net income and the $26.1 million actually generated from mining operations. Investors must look closely at whether the company's profitability is driven by the physical sale of tungsten or by the fluctuating value of its convertible instruments and capped calls. While the company's report presents these gains as a positive reflection of its financial position, it does not address how a reversal in derivative valuations might impact future net income if tungsten prices stabilize.
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