A good presentation.
Early in the presentation, they are explaining what the world would be like without tungsten. This is a good move as most people don't understand how critical it is and how much is coming from China.
The market has focused on rare earths but tungsten is more critical and difficult to source from western mines. Western mines are struggling to open and to remain open. Those that are open haven't been able to achieve the recoveries that EQR are achieving. We have a proven management team and a global offtake partner who will take all that is produced.
Future demand is strong due to technology uses and defense.
Production is happening as the second ore sorter cranks up. They have 50k tonnes of stockpiled material to put thru the ore sorters. This will allow the tonnage to increase from 30 to 90-100 ton per month. The $A at 68c will also help.
The economics are pretty compelling at current levels as it's fully funded $21m and IRR of 154%. This will only increase as they add the low halo and western drilling into the picture. That will add further years to the green box and improve the NPV and IRR without requiring more capex.
Coming together nicely.
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