After a truly galactic IRR ...!, page-3

Good summary Gopher

There are plenty of reasons to be optimistic about the future of EQR. The valuation metric is ridiculously cheap. As noted above, that includes less than 20% of the KNOWN RESOURCE. There is plenty more to come with the drilling program starting soon.

There are a range of wannabes, but they are struggling to get to the line.

- Almonty is all marketing and little substance. 75 million Euro debt likely to slow them up. Got environmental issues.
- Tungsten West continues to run into problems for its low grade, close to town deposit. Can't generate income from sale of aggregates. Changing the design to try and make it economic after Wolf spent $200m
- G6 wanting more money $18m & it won't be the last cap raise. They say they have a NPV of $300m but that includes at least $100m for the underground. They have provided very little detail of how the underground will work. In short, they are unlikely to mine underground with BASS Strait metres from the mine. The risks are TOO HIGH. I'm also hearing of cost over runs. Those 28c option unlikely to be exercised. To exercise the market cap would be $250m plus (if including the existing performance rights & options). They will need a large expansion of their deposit to justify a mkt cap that large. AND 4 drill holes aren't going to do it.
- Other European deposits. Issues with Spanish and Portugal deposits as recoveries are an issue.

The only significant non Chinese player is Masan in Vietnam who has made a significant investment in the Nyobolt - EV technology. While this technology could be a complete game changer for the tungsten market we aren't there yet.

HOWEVER, there is another significant user that is likely to increase usage VERY SOON. While I'm a peace lover, the hard reality is DEFENSE SPENDING around the world is growing quickly. Below are some uses of tungsten.

Some modern-day applications of tungsten in military materials include:

• Tungsten is used in making bulletproof vehicles, armored tanks, and other kinds of protective equipment designed to withstand the high-speed impact of bullets. This is due to the hardness of tungsten. And this property, as well as others, can be enhanced through alloying to yield stronger composite materials.
• It is also used in making armor-piercing rounds. These are designed to pierce through protective armor and vehicles designed to be bulletproof. Tungsten can tolerate high levels of shock and does not easily shatter. This makes it useful in making these kinds of rounds.
• It is used in making high-speed cutting tools. These tools are usually made of high-speed steel, and they cut much quicker than ordinary carbon steel. Tungsten’s ability to withstand high temperatures makes it indispensable in fabricating these tools. This is because of the high temperatures when cutting at such high speeds.
• Tungsten is also used in the manufacturing of rocket and aircraft parts. It is instrumental in manufacturing parts like engines because of the high temperatures they have to withstand. Tungsten has a high thermal resistance and can withstand high temperatures without defect.