Research flash note from Morgans.The target price is lower than...

Research flash note from Morgans.

The target price is lower than Chris's initial assessment in Nov. I think this just relates to the 9c being paid by Oaktree and it's closer to the market price.

He says below a couple of important points.

My valuation and target price are currently A$0.10, and it’ll probably continue to go up as the hard rock mining re-starts (it has) and as the optimisation of extracting the resource evolves (it has as well).

What’s not to like for retail shareholders who can invest at A7cps, when knowledgeable people in the industry are valuing EQR at 9cps.

.10

EQ Resources banks AM from Oaktree Capital at 9 cents per EQR share

EQR has acquired the European tungsten producer Saloro S.L.U., which operates the Barruecopardo tungsten mine in Spain. As part of the transaction, Oaktree Capital has subscribed AM to EQR for the issue of EQR shares at A9 cents per share. The money is in the bank. You can buy EQR shares on the ASX at A6.3 cents. As I wrote before, What’s not to like?

Oaktree Capital

Oaktree is a leader among global investment managers specializing in alternative investments, with 3 billion in assets under management as of September 30, 2023. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,200 employees and offices in 21 cities

EQ Resources - the largest tungsten miner in the Western World.

With the Barruecopardo acquisition EQR will double production, acquire Euro35M in debt and an AM equity injection – also at A

.09 per share. What’s not to like for retail shareholders who can invest at A7cps, when knowledgeable people in the industry are valuing EQR at 9cps. I’m waiting for the September Quarter report before revising my valuation.

1		EQ Resources (ASX:EQR) Market Cap @ A6.3cps: A.2M Valuation & TP: A
2	EQ Resources (ASX:EQR) Market Cap @ A6.3cps: A$99.2M Valuation & TP: A$0.10 EQ Resources banks A$25M from Oaktree Capital at 9 cents per EQR share EQR has acquired the European tungsten producer Saloro S.L.U., which operates the Barruecopardo tungsten mine in Spain. As part of the transaction, Oaktree Capital has subscribed A$25M to EQR for the issue of EQR shares at A9 cents per share. The money is in the bank. You can buy EQR shares on the ASX at A6.3 cents. As I wrote before, What’s not to like? Oaktree Capital Oaktree is a leader among global investment managers specializing in alternative investments, with $183 billion in assets under management as of September 30, 2023. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,200 employees and offices in 21 cities EQ Resources - the largest tungsten miner in the Western World. With the Barruecopardo acquisition EQR will double production, acquire Euro35M in debt and an A$25M equity injection – also at A$0.09 per share. What’s not to like for retail shareholders who can invest at A7cps, when knowledgeable people in the industry are valuing EQR at 9cps. I’m waiting for the September Quarter report before revising my valuation.
3	EQ Resources (ASX:EQR) Market Cap @ A6.3cps: A$99.2M Valuation & TP: A$0.10 EQ Resources banks A$25M from Oaktree Capital at 9 cents per EQR share EQR has acquired the European tungsten producer Saloro S.L.U., which operates the Barruecopardo tungsten mine in Spain. As part of the transaction, Oaktree Capital has subscribed A$25M to EQR for the issue of EQR shares at A9 cents per share. The money is in the bank. You can buy EQR shares on the ASX at A6.3 cents. As I wrote before, What’s not to like? Oaktree Capital Oaktree is a leader among global investment managers specializing in alternative investments, with $183 billion in assets under management as of September 30, 2023. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,200 employees and offices in 21 cities EQ Resources - the largest tungsten miner in the Western World. With the Barruecopardo acquisition EQR will double production, acquire Euro35M in debt and an A$25M equity injection – also at A$0.09 per share. What’s not to like for retail shareholders who can invest at A7cps, when knowledgeable people in the industry are valuing EQR at 9cps. I’m waiting for the September Quarter report before revising my valuation.
4	As we noted last time we issued a RSEARCH FLASH: Our expectation is that the (Mt Carbine) resource will be increased (further) by drilling, and that there will be further additions to the Reserve base. My valuation and target price are currently A$0.10, and it’ll probably continue to go up as the hard rock mining re-starts (it has) and as the optimisation of extracting the resource evolves (it has as well).
5	Disclosure: Morgans Corporate Limited was a lead Manager to the Placement of shares in EQ Resources Limited in March 2021 and received fees in this regard Morgans Corporate Limited holds 25.0m Options in EQ Resources Limited at an exercise price of $0.0432 expiring 19 March 2024 as a result of capital raising activities. The Consultant involved in the preparation of this Research Flash holds shares in EQ Resources (ASX:EQR).