Chris Brown from Morgans put out a note this morning. An...

Chris Brown from Morgans put out a note this morning. An important line. My expectation is that both mines are now marginally operational cashflow positive.

.13ps In production

The World’s largest Tungsten miner outside China

EQR has reported record monthly group tungsten production of 19,580 metric tonne units (mtu – 10kg)

EQR has taken over 2 years to lift monthly tungsten production at its Mt Carbine, Queensland, mine from below 2,000mtus to the most recent monthly 9,040mtu, as it continues to upgrade its 3 operating TOMRA X-ray transmission (XRT) ore sorters and optimise processing to recover the tungsten minerals, the hard, black wolframite and the soft, white platy scheelite. Our expectation for Mt Carbine remains 20,000mtu/month, achieved over the next 12 months.

EQR acquired the producing Saloro operation, Spain, producing below 8,000mtu per month in the March 2024 quarter. Saloro produced 9,018mtu in August, as EQR management has commissioned new TOMRA XRT sorters and improved plant recovery. Our expectation for Saloro remains20,000mtu/month, achieved over the next 12 months.

The ramp-up at both operations continues.

On 2 September, EQR announced a strategic collaboration involving a multi-year offtake agreement with leading US-owned and fully integrated tungsten manufacturer Elmet Technologies. As part of the Agreement, a basic framework has been agreed in which Elmet is to purchase from EQR tungsten concentrate with an estimated value of A million (at current market prices) over a 5-year period. Elmet is to secure the offtake allocation through an advance payment of A.0 million to EQR. This give EQR access into the US strategic minerals market.

My expectation is that both mines are now marginally operational cashflow positive. Saloro will continue to need to optimise processing, with limited capital expenditure. Mt Carbine continues to fund mine development, in particular, underground development to evaluate the deeper mineralisation and the Iron Ridge veins to the north of the open pit and at depth.

1		EQ Resources (ASX:EQR) Market Cap. @ A4.5cps: A.9M Valuation & TP: A
2	EQ Resources (ASX:EQR) Market Cap. @ A4.5cps: A$93.9M Valuation & TP: A$0.13ps In production The World’s largest Tungsten miner outside China EQR has reported record monthly group tungsten production of 19,580 metric tonne units (mtu – 10kg) EQR has taken over 2 years to lift monthly tungsten production at its Mt Carbine, Queensland, mine from below 2,000mtus to the most recent monthly 9,040mtu, as it continues to upgrade its 3 operating TOMRA X-ray transmission (XRT) ore sorters and optimise processing to recover the tungsten minerals, the hard, black wolframite and the soft, white platy scheelite. Our expectation for Mt Carbine remains 20,000mtu/month, achieved over the next 12 months. EQR acquired the producing Saloro operation, Spain, producing below 8,000mtu per month in the March 2024 quarter. Saloro produced 9,018mtu in August, as EQR management has commissioned new TOMRA XRT sorters and improved plant recovery. Our expectation for Saloro remains20,000mtu/month, achieved over the next 12 months. The ramp-up at both operations continues. On 2 September, EQR announced a strategic collaboration involving a multi-year offtake agreement with leading US-owned and fully integrated tungsten manufacturer Elmet Technologies. As part of the Agreement, a basic framework has been agreed in which Elmet is to purchase from EQR tungsten concentrate with an estimated value of A$30 million (at current market prices) over a 5-year period. Elmet is to secure the offtake allocation through an advance payment of A$2.0 million to EQR. This give EQR access into the US strategic minerals market. My expectation is that both mines are now marginally operational cashflow positive. Saloro will continue to need to optimise processing, with limited capital expenditure. Mt Carbine continues to fund mine development, in particular, underground development to evaluate the deeper mineralisation and the Iron Ridge veins to the north of the open pit and at depth.