Shares of Almonty Industries surged 7.1% to $11.84 on August 7 as investors continued to digest the tungsten producer's rapid-fire exit from two stock exchanges, a restructuring that has whipsawed the stock nearly 33% lower over the past month before triggering a sharp rebound.
• Forced Selling Created the Dip, Not Bad News About the Business. When Almonty pulled its listing from the Toronto Stock Exchange on July 31, the move triggered automatic ejection from several small-cap indices — including the FTSE Global Small Cap Index — forcing index-tracking funds to dump shares regardless of the company's fundamentals.
The result was a 30-day slide of nearly 33%, but that seller-induced pressure is now abating.
The Australian leg follows the same playbook: CDI trading ends August 28, with formal removal September 1. Investors buying today are betting the mechanical selling is mostly finished.
• The Company Is Cutting Costs by Simplifying Where It Trades. Almonty cited that most daily trading volume already occurs on Nasdaq, and referenced the financial, administrative, and compliance costs of maintaining a TSX listing as reasons for the change.
After the TSX exit, the company is consolidating liquidity around Nasdaq and the Frankfurt exchange. Fewer listings mean lower overhead — but also fewer pools of buyers, a risk for a stock with a $3.8 billion market cap that still posts negative earnings.
• The Operational Story Is Strengthening Underneath the Noise. First-quarter revenue surged 221% to $25.4 million, propelled by record tungsten prices, while adjusted EBITDA swung to $6.1 million from a $2.4 million loss a year earlier.
For the upcoming quarter, analysts expect earnings of $0.10 per share and revenue of $52.66 million, up 912% year-over-year,
with the report due August 17. The Sangdong tungsten mine in South Korea — sitting on a stockpile with an estimated in-process value of roughly $68 million — is now in its first production cycle.
• Analysts Still See Major Upside, But the Gap Is Huge. DA Davidson carries a $33 price target, while Oppenheimer holds $25 with an "Outperform" rating.
Almonty's June 29 inclusion in the Russell 1000 and Russell 3000 indexes introduced a fresh wave of institutional demand that partially offsets the Canadian and Australian outflows. The question now is whether Nasdaq-only trading provides enough liquidity for that institutional base — or whether a tighter float simply amplifies volatility in both directions.