A comparison between EQR and G6M, page-154

Like always. Not financial advice. Just some fun. Let me know of the mistakes I have made.

Another quarter has come and gone. I think it is fair to say that both EQR and G6M have had disappointing results. Both were expected to have been hitting their straps yet both missed their mark considerably. Looking at the trend based on the below numbers vs the previous quarters one could assume G6M is trending up and EQR is trending down. However looking a bit closer to each situation it is my opinion that EQR is still the safer bet for future shareholder gains.

Comparing the activities between the two EQR acquired the biggest tungsten mine in Europe although it has been struggling with recoveries since inception in 2019. This brought along a capital injection(post quarter) of $25m AUD into EQR with $16.5m paying off a portion of the debt that was held by the European operation. $25m Euros of debt is still owed after the acquisition. Of note is the $25m AUD purchased EQR equity was at 9c a share vs its current trading price of 5.8c. Also of note an additional $80m Euro of debt was wiped for the grand total of 1 Euro as part of the transaction. It is estimated over $200m AUD has gone into the Spanish operation that EQR obtained. The completion of the acquisition will also trigger the dissolving of the current 50:50 JV with Cronimet bringing them on to the register and simplifying the Mt Carbine accounting. With Mt Carbine and Saloro under EQRs ownership EQR is now the biggest western producer of tungsten.

A lack of water at Mt Carbine during the quarter reduced crushing and in turn XRT sorting and plant throughput. This lack of water was solved by the wild weather brought by cyclone Jasper during the quarter which also put Mt Carbine out of action for 10 days in December.

G6M in comparison had a relatively quiet time. Operations during the quarter needed further capital so $8m AUD was obtained in bridging finance and less than 2 months later at the end of the quarter only $500k was left. Post quarter a further $14.3m R&D tax refund occurred with the $8m AUD bridging finance plus interest (12.5%pa) to be paid back within 72hrs. G6Ms month of December shows the operation is still struggling with obtaining recoveries despite higher grade ore being processed.

GLTA and here's to the next quarter bringing some positive news.