In the 6th of Feb chat between Oliver and STK markets there was...

In the 6th of Feb chat between Oliver and STK markets there was some interesting information that came to light. I haven't seen anyone discussing this but feel like it is worth mentioning.

https://www.youtube.com/watch?v=RTlvdon85Kk

Starting around the 3min 50 market Oliver states:

“For EQR specifically for our Spanish asset we have standardized our product specifications, in the past under previous management every customer had received very customized concentrate as per their levels of maximum impurities or what the tungsten grade in the concentrate should look like and I think we have done pretty well in the last twelve months to educate the market what we believe is a standard product and I think everybody out there knows meanwhile that we are producing a 50% grade all the customers have accepted those changes without any price compromise from our side so I would say we are likewise receiving a premium as compared to the years before as we are standardising our product to whatever suits best to the processing plant and the ore body and there’s naturally certain impurities that will end in the product but I can say all our customers have joined this journey, all out customers understand that if we sit within our sweet spot we will at the end of the day recover more tungsten for them and it's a win-win situation”.

My view is that it's going to be a lot easier for Saloro and its team to achieve and maintain high recoveries if they have a set steady state consistent end concentrate. They are removing a lot of the changes that need to be made to get a changing ore feed into a different concentrate profile. To me this is BIG news.

-removing the need to produce different concentrates

-not losing value

-all customers happy with the one product

-more tungsten being produced

-better recoveries

-less headaches/technical needs on the plant and teams running it.

-1 set of rules fits all, simplifying production and making it more efficient.

Well done EQR!