Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-69

Like always, DYOR and the below is just my opinion. A couple of things.

“If EQR had not bought it and it went into care and maintenance, then all of that volume would have been removed from the market.”

Are you suggesting that EQR would be better off with the Saloro tungsten production being removed from the market and them not owning it, than them owning it? Would you care to explain that a little further as I and I assume most EQR shareholders would strongly disagree.

“When you say, "I still believe that EQR will turn it around and make myself (and hopefully all shareholders) a profit in the near future". What is the date you are expecting???”

I am hopeful that post the June 2025 quarter results I will be in profit. So if you would like a date by September the 1st 2025 I expect to be in the green.

When you get a bit more time can you elaborate on “Although I think your value proposition on Almonty is floored.“. What part do you think is floored? All I did was pretty much cut and paste the info from their latest presentation.

I find it quite telling that phase one of Sandong was capex of USD 75m, phase 1 is still not complete and no doubt is going to require more funds to finish the build and keep afloat while Almonty achieves the ramp up to steady state production. Yet Almonty is currently in 103m USD of debt.

“For me, it is going to be a tuff year at MC with the stripping.”

I don’t fully agree, recent times have seen Mt Carbine in a particularly unprofitable situation with stripping being the main focus, the LGS being a larger source of ore and the lack of water impacting the plant/crushing. However, the water issues should be solved soon if not already. The first 8 days of Feb Mareeba had 115mm, over half the average of feb.

Based on the quarterly they got access to and have started mining the start of the higher grade ore body after stripping exposed it. More stripping is needed to get to even higher grade ore but by today they should be able to access this higher grade ore. Stripping will continue whilst higher grade ore is mined and supplied to the plant and it is occurring now or very soon. See the quote below.

“The Iolanthe vein system is the main ore zone being targeted and significant volume of waste removal has been completed (with more required in January / early February) to reach the thick of the high-grade ore zones. While the top of the ore body on level 355-345m RL is currently being mined in January 2025, it is expected that the ore at the level 325m RL will deliver significant grade increase as the veins thicken and the mineralised zones are enriched, as confirmed by the thorough RC drilling campaigns conducted in 2024 and January 2025. “

Assuming water levels are back up enough that the plant is back to full time along with crushing, EQR having accessed the start of the higher grade ore in January and is now starting to access even higher grade ore I think we can expect the worst is behind us for Mt Carbine.

“At Saloro I just cannot see how it ever makes any real profit. The grade is just too low, and the ore sorters are not having the effect need. If you look at last quarter (Q2) the ore sorter feed was less than 10% of the gravity plant feed compared to nearly 25% at MC in Q1”

The obvious way to “see” Saloro making real profit is an increase to the tungsten price. Anyone jumping into AII/TGN/EQR are all banking on this and while AII is still months (12+??) from any real volume of production and still needs to prove itself, and TGN is many years and a full development lifecycle away, EQR is producing and will get the full impact of any increase to the tungsten price.

According to the quarterly Saloro had free cash flow from its operations of $1.5m and record production. “the ore sorter feed was less than 10% of the gravity plant feed ” it was just over 10%. But let's just call it 10%. My understanding is this 10% of ore (or at least 50% of the 10%) was previously discarded as waste before the ore sorters were installed. Yes they want more ore sorters but I would not consider turning waste into high grade ore as “not having the effect needed”

Improvements are still ongoing and EQR are still aiming for 70% recoveries and more uptime at Saloro. This leads me to believe that the March quarter will be better than the Dec quarter for Saloro.
So to wrap things up IMO EQR has:
Saloro humming along with record production, cash flow positive operationally, and more improvements occurring and will have a better set of production numbers this quarter than last.

EQR rebounding off of a terrible quarter with access to high grade ore again and will have a better set of production numbers this quarter than last.

Both mines have serious expansion options(both planned and progressing, although delayed)

All with the backdrop of the Tungsten price potentially increasing substantially in the near term.
GLTA