Ann: EQR to Acquire 100% interest in Tungsten Metals Group, page-26

Biggest western producer of Tungsten concentrate.
Biggest western producer of Ferrotungsten.

Tungsten Metal Groups recent IPO was chasing $14m @20c a share. After raising on listing they would of had a Market Cap of $39.75m AUD.

170m x 5.3c=$9m
+$2.5m cash
=$11.5m AUD total. Both EQR and the newly listed ASX after IPO would of held the same liabilities and assets. I expect EQR was in the drivers seat on this transaction.

Thinking about a listed Tungsten Metal Group (LTMG from here on) vs an EQR controlled Tungsten Metal Group you can see a much better fit with EQR and a lot more value being generated from the assets.

LTMG would be struggling to obtain tungsten ore. EQR has its own source. And enough to mean one source of ore/grade/blend not an ever changing ore composition. I expect a static ore would lead to a lot of efficiency when compared to an ever changing ore source. The plant uptime would also be a lot higher with a constant feed of ore vs LTMG toll processing.


LTMG would be paying full price for the concentrate including fees and shipping and all the middle men. EQR can stream line the process and absorb a lot of the extra costs associated with buying and selling.

EQR already has a board and ASX requirements. LTMG would need there own corporate structures and associated costs.

I believe Ferro tungsten is somewhere between 70% and 80% Tungsten. EQR can go from selling a 100% contained in concentrate MTU for ~$420 Aud to selling 100% of that MTU mixed with Iron (very low cost compared to Tungsten) for 1.2 x $470=$560 Aud. A 34% increase in value add.

Given the imminent news regarding further Chinese export limits of tungsten, the importance of Ferro Tungsten, the 2026 ban from the US and trumps potential tariffs etc this assets value can only increase imo.

Good luck to all. And Rob thanks for the heads up we would hate to have another Saloro on our hands.