Almonty's Q2 2026 revenue rose 498% to C$43.0M on a near seven-fold tungsten price, but C$173.1M of its C$181.8M net income was a non-cash gain on its new convertible notes; Sangdong was certified for commercial operation in September.
Revenue
CAD 43M
+497.7% YoY
Net income
CAD 182M
Diluted EPS
CAD 0.62
Operating margin
37.5%
This period vs a year ago
Same period last year
This period
Revenue▲+497.7%
≈CAD 7.2M
CAD 43M
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Overview
Almonty Industries' revenue rose about six-fold to C$43.0 million in the second quarter of 2026 (C$7.2 million a year earlier), and almost all of that came from price, not volume. Its only producing mine, Panasqueira in Portugal, actually produced 20.8% less and shipped 17.9% less than a year ago, but the European benchmark price for tungsten (APT, ammonium paratungstate, the traded intermediate chemical that tungsten concentrate is priced off) averaged US$3,075 per MTU in the quarter versus US$453 a year earlier. (An MTU, metric tonne unit, is 10 kg of contained tungsten trioxide, the standard unit tungsten is sold in.) The reported net income of C$181.8 million is a different story: C$173.1 million of it is a non-cash accounting gain on the company's own convertible notes and related instruments, not money earned from mining.
All figures are in Canadian dollars unless stated otherwise. Almonty reports under IFRS as a foreign private issuer, so these results come from its 6-K filing (financial statements, MD&A and earnings release) rather than a 10-Q.
At a glance
Revenue C$43.0M, up 498% year on year — driven by a tungsten price roughly 6.8x higher, while Panasqueira shipped 17.9% less concentrate.
Net income C$181.8M, but about C$8.7M excluding derivative and warrant revaluations (our calculation from the filing) — the headline profit is overwhelmingly an accounting effect.
Cash C$1.23 billion at June 30, up from C$268.4M at December 31 — almost entirely from the US$800 million convertible notes sold in June, not from operations.
Key metrics
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
C$43.0M
C$7.2M
+497.7%
Income from mining operations (gross profit)
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C$26.1M
-C$0.9M
n/m (loss to profit)
Gross margin
60.7%
-13.1%
n/m
Operating margin (after G&A and share-based pay)
37.5%
-164.1%
n/m
Net income (loss)
C$181.8M
-C$58.2M
n/m (loss to profit)
Diluted EPS
C$0.62
-C$0.30
n/m (loss to profit)
Adjusted EBITDA (non-IFRS)
C$17.6M
-C$4.8M
+C$22.3M
European APT average price
US$3,075/MTU
US$453/MTU
+578.8%
Panasqueira production
—
—
-20.8%
Panasqueira shipments
—
—
-17.9%
Cash (period-end vs Dec 31, 2025)
C$1,227.2M
C$268.4M
+357%
"Operating margin" here is income before financing items, derivative revaluations, FX and tax (C$16.1M) divided by revenue — the share of revenue left after mining costs, head-office costs and stock-based pay. Almonty does not disclose its average realized selling price per MTU or absolute tonnages, only the percentage changes above.
Takeaway: Almonty's underlying business in Q2 2026 is a single, shrinking-volume Portuguese mine riding a tungsten price that rose almost seven-fold — it earned roughly C$9 million on an underlying basis, not C$182 million. The investment case now rests almost entirely on Sangdong in South Korea, which contributed just C$0.1 million of revenue in the first half but received its final operating certificates on September 17, 2026.
Where the revenue came from: price, not volume
Panasqueira is effectively the whole income statement. In the six months to June, it generated C$68.3 million of the company's C$68.4 million revenue; Sangdong contributed C$120 thousand. The MD&A attributes the entire C$35.8 million year-on-year revenue increase at Panasqueira to "the significant increase in the selling price of concentrate," while production fell 20.8% because of "a lower amount of ore mined and processed."
Almonty prices concentrate not under fixed-price contracts off the prior month's average APT quote. That lag matters for reading the sequential numbers: revenue rose 69% from Q1 2026 (C$25.4M) even though the company sold 21.1% fewer MTUs than in Q1, and the APT quarterly average rose only from US$2,975 to US$3,075. Two facts in the filing help explain the gap: C$3.4 million of March shipments were only recognized as revenue in April, and APT began 2026 near US$862.5 before climbing, so Q1's sales were partly priced off much lower December–January quotes.
Mining costs barely moved with the price: mining ore costs were C$5.9M (C$4.8M a year ago) and processing C$2.5M (C$3.2M). The cost line that did move was royalties, which jumped to C$7.0M from C$0.1M — about 16% of revenue, versus 1% a year ago. The filing does not explain the increase; the size of the jump relative to price suggests royalties that scale with price or profitability, which means part of every further price gain will be shared rather than flowing fully to Almonty.
What the headline numbers hide
The profit is an accounting artifact. Net income includes a C$204.4M gain on "embedded derivative liabilities," partly offset by a C$30.7M loss on the capped call and C$0.6M on warrants (C$173.1M net). The June notes can be converted into shares, and IFRS required Almonty to book that conversion option as a liability valued at C$441.8M on issue. When the share price fell to US$16.56 by June 30 (well below the US$27.40 conversion price), that option became less valuable to noteholders, and the decline was booked as a gain. Put plainly: a falling share price created most of this quarter's profit. Stripping out the three revaluation lines leaves roughly C$8.7M of net income, versus roughly -C$13.2M on the same basis a year ago (our calculations from the filing's reconciliation). The reverse also applies: a rising share price would produce large paper losses in future quarters.
Interest expense is about to step up sharply. The notes carry a 2.25% cash coupon (about US$18M a year on US$800M), but because the conversion option was split off, the debt is carried at a discount and accrues interest at an effective rate of 15.32%, per the notes to the financial statements. On the C$649M net carrying value, that works out to roughly C$25M of interest expense a quarter (our estimate), mostly non-cash — close to the entire C$26.1M of Q2 mining income. Q2's C$5.7M interest expense only included three weeks of the notes. Interest income on the cash pile (C$3.8M in Q2) offsets part of it.
Cash conversion is decent but propped up by payables. First-half operating cash flow was C$31.6M (versus -C$14.9M a year ago), well below first-half net income of C$176.5M for the reasons above. Of that C$31.6M, C$26.5M came from a rise in accounts payable, partly offset by trade receivables up C$10.0M. Cash spent on mine assets was C$36.9M, so first-half free cash flow was about -C$5.3M.
Overheads more than doubled. General and administrative costs rose to C$8.9M from C$4.1M, which management attributes to a larger management team plus consulting, legal and operating costs; it says it expects them to normalize over time.
Potential dilution. At the initial conversion rate of 36.4950 shares per US$1,000, the notes could convert into about 29.2 million shares, roughly 10% of the 288.1M outstanding at June 30 (our calculation). The capped call Almonty bought for US$94.8M offsets dilution between the US$27.40 conversion price and a US$41.36 cap.
Sangdong: from commissioning to commercial operation
Sangdong, in Gangwon Province, South Korea, is the reason Almonty raised the money. Per the MD&A, Phase I began commercial mining in December 2025, the processing plant was in commissioning and ramp-up, and completion was expected during Q3 2026, with targeted ore throughput of about 640,000 tonnes a year. A fully permitted Phase II could lift that to up to 1.2 million tonnes, which the company says could be completed in 2027 subject to Phase I results and market conditions. Sangdong capital spending was C$44.8M in the first half.
Two later filings move this forward. On July 14, 2026, Almonty amended its offtake agreement with Global Tungsten & Powders (part of Austria's Plansee Group): term extended by six years, contracted volumes up 40%, and pricing improved by about 6.3%. A September 21 6-K says the agreement now covers 4.41 million MTU over 21 years from first delivery, with a minimum of 210,000 MTU a year after ramp-up, and more than 90% of Phase I output. The same filing reports that inspection certificates issued September 17, 2026 authorize commercial operation of the processing plant, and that ore has been running through the plant since June.
Balance sheet and capital allocation
Cash was C$1.23 billion against long-term debt of C$813.1M (C$57.6M due within 12 months), and Almonty repaid its KfW term loan (EUR14.7M) in full on July 15, 2026. Management says the cash lets it fund Sangdong Phase II, a planned tungsten oxide plant in South Korea, the Gentung project in Montana and the Panasqueira extension in parallel. Of the July 2025 IPO proceeds earmarked for the tungsten oxide plant (US$68.3M), none had been spent as of June 30. On August 17, 2026, the board also approved a share buyback of up to US$300M (up to 14.4 million shares) over 36 months. Using cash raised through convertible debt to buy back shares adds leverage to a company whose main mine has only just been certified.
The company also moved its headquarters from Toronto to Dillon, Montana, delisted from the Toronto Stock Exchange (July 31) and the ASX (September 1), and joined the Russell 1000 index on June 29.
Outlook
Almonty gives no revenue, production or cost guidance. The MD&A's market section notes China accounted for about 80% of tungsten supply in 2025 (per the USGS), China imposed export controls on tungsten in February 2025, and APT stood at about US$3,087 per MTU on August 7, 2026 — roughly level with the Q2 average, so price alone is unlikely to drive the same sequential jump in Q3 that it did in Q1 and Q2. Against the US$615 Q3 2025 average, though, Panasqueira's year-on-year comparison will remain very strong.
Our read: Q3 2026 is the first quarter that could show Sangdong sales, and Q4 is the first that could show a meaningful amount. The things to watch are Sangdong's concentrate output and recovery rates as it ramps, whether royalties keep taking around 16% of revenue, the size of the new interest expense line against mining income, and how much of the reported profit continues to come from swings in the share price. Panasqueira's falling volumes mean that if tungsten prices weaken, the existing business has little volume growth to cushion it until Sangdong is running at rate.