Ann: Tungsten Output at Mt Carbine Increases, page-61

Some weekend thoughts

Looking forward to the update from Kevin and team's trip to Spain. This should give the market clarity and the opportunity, given there are improvements being made at both mines. Carbine producing 200t of 50-55% concentrate with the expectation of moving to 300t plus next year. Salaro producing 140t of 65%concentrate with the expectation of moving to 200t plus next year.

As already announced, this makes us the biggest non Chinese producer.

The tungsten price has slightly drifted lower over the last few months, but held up well when compared to many other commodities. Increased Tungsten demand isn't showing up yet due to the slowing of the global economy, but that is likely to change given the upcoming demand from 1. Nyobolts EV commercial plant in 2024 or 2025. 2. Defence manufacturing being ramped up everywhere & 3. Global economy picking up mid to late 2024.

Where will the extra tungsten come from?

From the other players I'm aware of with potential new production;
1.Tungsten West is in big trouble again and is effectively looking for a govt bailout. However UK govt have bigger problems.
2. Group 6 Metals seem to be struggling to ramp up. Cashflow is going to be an issue and they already have $40-$50m of debt. They haven't released any Sept numbers yet. If they were OK, they would have said it by now. They need more money as stated in their annual & the higher grade stuff isn't coming until next year at the earliest.
3. Almonty has $120m of debt. Is taking used gear from its Portuguese mine to Sth Korea. That doesn't seem like a great strategy unless you have cash issues. They did a private placement for $2m last week to cover working capital. Sandong is nearly 2 years behind the schedule outlined in its ASX prospectus. There are some big question marks about whether they get to the production line. Apparently, they were very keen on Saloro.

Anyone know of any other players with extra supply?

If these three struggle to produce, then it provides EQR with the room to ramp up further as the demand will come and remember the US Defence has banned Chinese tungsten from 2026.