Q2 FY2026
Filed Aug 12, 2026Revenue Increases 498% Year-Over-Year to $43.0 Million, Driven by Record Tungsten Pricing; Net Income of $181.8 Million Compared to a Loss of $58.2 Million
Revenue increased 498% year-over-year and 69% sequentially, mining operations generated $26.1 million of income, and Adjusted EBITDA reached $17.6 million. The reported net-income result was substantially driven by $173.1 million of aggregate net non-cash revaluation gains, while the US$800 million convertible notes offering increased cash to $1.23 billion.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $43.0 million | 69% | 498% |
| Income (loss) from mining operationsother | $26.1 million | – | – |
| Total cost of salesother | $16.9 million | – | – |
| Gross profit marginother | 60.7% of revenue | – | – |
| Cost of sales as a percentage of revenueother | 39.3% of revenue | – | – |
| General and administrative expensesother | $8.9 million | – | – |
| Net income (loss) for the periodother | $181.8 million | – | – |
| Earnings per share, basicother | $0.64 | – | – |
| Earnings per share, dilutedother | $0.62 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $17.6 million | – | – |
| Net non-cash gains on revaluation of derivative and warrant instrumentsother | $173.1 million | – | – |
| Non-cash gain on revaluation of embedded derivative liabilitiesother | $204.4 million | – | – |
| Non-cash loss on revaluation of embedded derivative asset associated with capped call transactionsother | $30.7 million | – | – |
| Non-cash loss on revaluation of warrant liabilitiesother | $0.6 million | – | – |
| Cash flow provided by operating activitiesother | $31.6 million | – | – |
| Cashother | $1.23 billion | – | – |
Future operational targets outlook
- NoteOnce fully operational, targeted ore throughput capacity is expected to reach approximately 640,000 tonnes per year
- Notea fully permitted Phase II expansion contemplated to increase throughput capacity to up to 1.2 million tonnes per year
What drove it
- The increase was driven primarily by the significant appreciation in the price of tungsten APT.
- The European APT average price rose to US$3,075 per MTU during the second quarter of 2026 from US$453 per MTU in the second quarter of 2025.
- Phase I of the Sangdong Mine remains in commissioning and ramp-up.
- The July 14, 2026 amendment to the GTP offtake agreement extends the term by six years, increases total contracted volumes by 40% and improves pricing payable to Almonty on all contracted volumes by approximately 6.3%.
Concerns
- Reported net income included $173.1 million in aggregate net non-cash gains on the revaluation of derivative and warrant instruments.
- Phase I of the Sangdong Mine remains in commissioning and ramp-up.
- General and administrative expenses increased primarily due to higher salaries and wages, consulting, legal, and operating costs.
- The Company identifies the expected trajectory of tungsten prices as a key assumption underlying its forward-looking information.
What to watch
- Commissioning and ramp-up of Phase I of the Sangdong Mine.
- Execution of the Phase II Sangdong expansion, Tungsten Oxide Facility in South Korea, Gentung Tungsten Project in Montana and Panasqueira extension.
- Realization of the amended GTP offtake agreement's six-year extension, 40% increase in contracted volumes and approximately 6.3% pricing improvement.
- The trajectory of tungsten prices and its effect on operations.
- Whether general and administrative expenses normalize over time as the organization scales.
Balance sheet and cash flow
- Cash as of June 30, 2026 totaled $1.23 billion, as compared to $268.4 million as of December 31, 2025.
- Cash flow provided by operating activities was $31.6 million for the six months ended June 30, 2026, as compared to cash used in operating activities of ($14.9) million in the same year-ago period.
- On June 9, 2026, Almonty closed its oversubscribed offering of 2.25% convertible senior notes due 2031, generating gross proceeds of US$800 million.
- Subsequent to quarter end, the Company repaid its KfW term loan in full.
Analysis
Almonty reported a sharp improvement in operating results for the second quarter of 2026. Revenue was $43.0 million, up 498% from $7.2 million in the prior-year quarter and 69% from $25.4 million in the first quarter of 2026. The company attributed the increase primarily to tungsten APT pricing, with the European APT average price at US$3,075 per MTU during the quarter versus US$453 per MTU in the second quarter of 2025. Income from mining operations was $26.1 million, compared with a loss from mining operations of ($0.9) million, while Adjusted EBITDA was $17.6 million compared with ($4.8) million.
The reported profitability result requires separation between operating performance and IFRS revaluation effects. Net income was $181.8 million, or $0.62 per diluted share, versus a net loss of ($58.2) million, or ($0.30) per share. However, net income included $173.1 million of aggregate net non-cash gains on derivative and warrant revaluations. These included a $204.4 million gain on embedded derivative liabilities, partly offset by a $30.7 million loss on the capped-call embedded derivative asset and a $0.6 million loss on warrant liabilities. The company stated that these accounting items did not affect operating performance, cash flow, or liquidity.
Margin and cost disclosures show a substantial improvement in mine-level economics. Total cost of sales was $16.9 million, or 39.3% of revenue, and the CFO cited a gross profit margin of 60.7% of revenue. General and administrative expenses were $8.9 million compared with $4.1 million in the prior-year quarter, reflecting higher salaries and wages, consulting, legal, and operating costs as management expanded the organization. The company expects normalization of general and administrative expenses over time as the organization scales.
Liquidity changed materially during the period. Almonty closed an oversubscribed 2.25% convertible senior notes due 2031 offering on June 9, 2026, generating gross proceeds of US$800 million. Cash as of June 30, 2026 totaled $1.23 billion compared with $268.4 million as of December 31, 2025. Cash flow provided by operating activities was $31.6 million for the six months ended June 30, 2026, compared with cash used in operating activities of ($14.9) million in the same year-ago period. The company also said it repaid its KfW term loan in full subsequent to quarter end.
Operationally, Phase I of the Sangdong Mine remains in commissioning and ramp-up, with targeted fully operational throughput of approximately 640,000 tonnes per year. A contemplated Phase II expansion is fully permitted and could increase throughput capacity to up to 1.2 million tonnes per year. The amended GTP offtake agreement extends the term by six years, increases total contracted volumes by 40%, and improves pricing on contracted volumes by approximately 6.3%. Management intends to use its cash resources to advance the Sangdong Phase II expansion, Tungsten Oxide Facility, Gentung Tungsten Project, and Panasqueira extension.
Management, verbatim
The second quarter of 2026 demonstrated a first look at the prospective earnings power that Almonty has spent more than a decade building toward. Revenue increased 498% year-over-year to $43.0 million and 69% sequentially, income from mining operations reached $26.1 million, and Adjusted EBITDA was $17.6 million – an improvement of more than $22 million from the same quarter last year.
Lewis Black, Chairman, President & CEO
Reported net income of $181.8 million includes $173.1 million of net non-cash gains on the revaluation of derivative and warrant instruments, which are a function of IFRS fair value accounting on our convertible instruments and capped calls.
Jorge Beristain, CFA, Chief Financial Officer
Not in the filing
stated, not guessed- Segment revenue and segment profitability disclosure
- Free cash flow
- Capital expenditures
- Debt balance as of June 30, 2026
- Amount repaid on the KfW term loan
- Share repurchases and dividends
- IFRS operating income
- Tax rate
- Financial revenue, margin, operating-expense, or tax-rate guidance
- Prior-quarter values for income from mining operations, cost of sales, general and administrative expenses, net income, earnings per share, and Adjusted EBITDA
- Prior-year gross profit margin and prior-year cost of sales as a percentage of revenue
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.