The market IS NOT AWARE of this company & therefore the price...

The market IS NOT AWARE of this company & therefore the price doesn't reflect the value and the opportunity.

I was talking to a Small company fund manager during the week. They have a close eye on about 250 companies in the Aussie market from about $100m+. He hadn't heard of EQR and only knew tungsten being in light bulbs. However, he was a little more interested when I said it had an IRR of 477%, payback period of less than 1 year and little debt and a NPV that only reflected 20% of the KNOWN RESOURCE.

While we have research from Pacpartners (very small) and Morgans (reasonable retail following), tungsten isn't on the radar of investors as it isn't sexy (lithium, gold, copper or rare earth). They certainly aren't talking to their clients about the most economic important material according to EU (8.1).
Why? because there are few successful examples of tungsten producers outside of China.

However, one of the world's largest financial players OAKTREE capital management has had a good look and has not only sold their existing stake into us for 1 EURO, they have guaranteed the debt for 18 months and put in another $25m at a 30%+ premium. Why? Not sure, but I think they can see a bigger picture.

First the economics of our project are unrivalled. Looking at the recently published Austrade Critical Metals report of 60 mining projects. Only one project had an IRR within 100% of ours with most having an IRR less than 30%. G6M is currently at 28%. TGN 9%

Second, there aren't many non Chinese players and even fewer in production. The chart below is from Pacpartners initial tungsten assessment.

If we look at these players.

1. Sisson in Canada isn't producing and needs tungsten price at $400 plus to be vital.
2. Hermerdon - Tungsten West is trying to restart for the 3rd time after spending 200m pounds. They may get there but have a low grade deposit, close to a city (Plymouth) which could cause them issues.
3. Nu Phao - Masan, is the world biggest non Chinese producer. EQR has a MOU with Masan and our future could closer.
4. Almonty - Lewis Black. Lots of talk of being the biggest but has delivered little. I'm sure Oaktree looked at them as a possible partner, given they are in Spain.
a). Los Santos - care and maintenance
b) Panasqueira - producing 100t per month
c) Valtreixal - pre- feasibility
d) Sandong - under construction with 70m of debt. Timeline keeps being moved out. Some environmental questions?
5. Mittersill - Wolfram Bergbau und Hutten - producing Austrian mine and current offtaker of Saloro product. End to end product maker of tungsten products. Part of Sandvik Group. They were probably in the running as well.
6. Dolphin - G6M just starting, but cost blow outs and trying to ramp up. Will they need more capital before they reach a sustainable level; probably. Already has $50m of debt.

So, there aren't many profitable producers and some major question marks still around Almonty, G6M and Tungsten West.

This leaves a large gap for a major player to be the dominant tungsten producer. Especially with the US banning Chinese tungsten from defense from 2026.

I think Oaktree can see the opportunity especially when the aim is to increase the resource and the NPV. An extensive drilling program is not far away. Remember Tony believes this is a multi-generational deposit (60 to 100 years). They want to get the value up NPV $600m-$1bn so any expansion is being done with our increased value. We also have access to Wolfram Camp and likely Watershed as well given Tungsten Mining has done little with it.

Oaktree will bring a wider range of vlewers, who after having a look and a great understanding will also see the opportunity. But we aren't there yet.

This deal will probably be a slow burn, rather than an instant bang. But we can only hope. The other thing Oaktree brings is wider net to bring management capability and other bolt on opportunities

Patience is a still a virtue!!! and happy where this story is going.