EQR Research BUY $0.12c upside 166%, page-4

For new or older holders that may have missed this update a few months back. Straight from the report-

"Dismantle the processing JV with Cronimet for $1 after 15kt. EQ has the opportunity over the medium to long term to fully own the processing infrastructure that has been established with the help of funding from Cronimet within the LGS Processing JV. After 15kt of concentrate has been delivered to the Cronimet JV from either the low-grade stockpile or open cut operations, EQ then has the right to acquire the processing facilities for $1. This would provide significant long-term benefits to EQ shareholders over the long term, particularly as the open cut is extended or underground mining operations commence."

This I think is also key
"Our modelling suggests the total entitlement of ~A$51m at EBITDA and A$34m at NPAT using a longrun price of US$340/mtu for APT. After 15kt has been delivered to the JV as was planned originally, EQR has the right to acquire the processing facilities for just $1. The benefits are that a new parallel processing plant does not need to be developed/commissioned to process open cut ore, and EQR has the freedom to run ore through the process plant, expand the plant, and optimise the ROM ore mix for EQR investors all without any obligation to run low-grade ore from the LGS. Cronimet Asia has confirmed its offtake agreement for 25,000t of concentrate worth around A$375 million (15kt from the original JV plus another 10kt in exchange for additional upfront funding)."

expand the plant

This update to the JV contract really takes the breaks off for EQR and in turn benefits Cronimet. A very comprehensive report.