So if there really is such a big supply demand imbalance in the tungsten market as a result of recent geopolitical tensions with China and buyers are clamouring for EQR product, why was EQR forced to accept such unattractive placement terms? And why the sudden urgency? All this when EQR is supposed to be now cash flow positive and both Saloro and Mt Carbine are producing at record levels? Something doesn’t add up.
If EQR really needed the money that badly and that urgently, why did they ‘turn down’ the QIC loan which at the time it was offered was considered attractive. IMO, it’s looking more likely that something happened and EQR could no longer meet the conditions of the QIC loan in time to secure the much needed funds and were suddenly forced to urgently seek alternative funding in order to acquire Tungsten Metals.
All speculation on my part but if the company was more transparent and provided more clarity on what’s actually happening, shareholders wouldn’t need to speculate.
Let’s just hope that this is the last time shareholders will be diluted on such unfavourable terms and that 2025 will finally be the start of some real sustainable price appreciation.
EQR Price at posting:
5.0¢ Sentiment: Buy Disclosure: Held
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