The current share price is basically retail buyers and sellers...

The current share price is basically retail buyers and sellers and at the moment the sellers are winning.

The value in EQR isn't going to be found in the Jan to March 2024 quarterly. The value is where it's going.

While the improvement in quarterly production is good, it's not at the level where we are swimming in cash. However, the value will be found it what has been outlined in recent announcements and industry news. These include;

Big Picture
1. Demand for tungsten is growing. In particular increased military spending EVERYWHERE will require more tungsten.
2. Tungsten price didn't fall with other metals such as lithium, cobalt and nickel and now is starting to increase, with more rises expected.
3. Lack of supply (China is importing tungsten, which suggests their supply has reduced). We know that increased production in the near term is only coming from EQR and G6M. TUN (UK) and Almonty are talking about it but jury still out about when they get more production. This should be good for the tungsten price.
4. Dept of Defence (US) has banned Chinese tungsten from 2026. They need other suppliers.
5. Government support at State & Federal is very clear. Additionally, interest from Governments from US Vietnam Spain Germany and EU.
6. Tungsten is rated as being the most economic important of all critical metals.

Mt Carbine
Open Pit (15% of known resource)
1. End of wet season. This will allow higher ore from the pit (the new gear has allowed production to continue, in previous years, they wouldn't have functioned).
2. More specific drilling will give more confidence regarding grades (less hit and miss using old drilling results).
3. Crushing capacity is doubling from 83k/t per month to 166k/t per month.
4. More ore sorters and existing ore sorters improved by 30% will allow more ore processed. The new technology likely to improve grades to the processing plants (instead of 10t per 100t kept for processing plant, it could be 3.5t per 100t like Saloro), reducing processing costs.
5. Processing plant has excess capacity as ore sorter and crushing have been the bottlenecks. Points 1,2 and 3 will see more ore into the plant.
6. Plans are to double the processing plant. More ore from other locations may assist.

END RESULT MORE TUNGSTEN

Future resource (85% of known resource + unknown resource)
7. We know there is a large resource to be accessed via underground, however we have little information. I expect we will hear more about this in the coming months (part of the original plan). Most of the infrastructure is in place.
8. A drilling program exploring up to 60 different tungsten locations will add more resource.

END RESULT MORE TUNGSTEN

Saloro
1. I'm expecting to see financials and modelling regarding Saloro in the coming months. What is the value of the mine? The previous owners have spent 200m Euros on plant and equipment for which we effectively get it for 25m of debt. That looks like a bargain. Let say the NPV is $150 to $200m. That gives a total NPV for the both mines of $450m to $500m with more to come from both.
2.The production from Spain has started to improve. Kevin's team has increased recoveries and the addition of ore sorters is likely to be a game changer. Instead of process 100t through the processing plant, the ore sorter will remove 96.5t and only process a higher grade 3.5t (LOWER COSTS).
3. Improved training will increase production. This has been shown at Mt Carbine and will be the same at Saloro. It's not an overnight fix but they know what needs to be fixed.
4. Largest resource in Europe and will be the largest producer. Critically important to Europe.
5. This suggests its not far from cashflow positive (but to be confirmed from the financials).

END RESULT MORE TUNGSTEN

Future Plans
The recent Sydney presentation was important as it provided a peek into the future for the company.
Management doesn't want to be a 2 mine business, they want to have multiple mines and downstream processing of a critically important mineral that is hard to produce. At each stage of the process, there is money to be made.

If you can't see the future vision, then follow the actions of the two large shareholders who know the whole picture - Oaktree and Cronimet. They have converted their equity and cash into EQR at 9c or nearly double the current price.

In short, Australian institutions aren't going to invest (they want entry via placement) until consistent positive cashflow is shown. That's probably in the next couple of quarters, but they will probably pay closer to Oaktree's price than the current one.

Patience is a virtue!