EQ Resources Accelerates Production and Expands Funding Amid Strategic Growth
EQ Resources delivered robust operational gains in Q3 FY2025, boosting mining volumes and processing throughput while advancing key plant upgrades and securing significant funding.
- Q3 FY2025 production: 36,322 mtu tungsten concentrate, 2.6 million tonnes mined
- Saloro plant throughput increased to 290 t/h with ongoing recovery enhancements
- Mt Carbine mining volumes rose 23% QoQ despite wet-season disruptions
- Secured A$4.5 million in offtake prepayments under long-term agreements
- Progressing acquisition of Tungsten Metals Group to vertically integrate supply chain
Operational Momentum at Saloro and Mt Carbine
EQ Resources Limited (ASX: EQR) reported a strong quarter ended 31 March 2025, marked by significant production growth and operational improvements across its flagship tungsten assets. The Saloro operations in Spain achieved a crushing throughput increase from approximately 200 tonnes per hour in January 2024 to 290 tonnes per hour by March 2025, supported by plant upgrades including gravity circuit enhancements and the commissioning of a multideck screen. These initiatives are expected to lift tungsten recovery rates above 70% in coming quarters.
Meanwhile, the Mt Carbine mine in Queensland, Australia, demonstrated resilience amid challenging wet-season conditions, with total material mined rising 23% quarter-on-quarter to 702,265 tonnes. Blasting volumes surged 70% to a post-restart record of 603,309 tonnes, underpinning a 48% increase in ore deliveries. Mining focused on the high-grade Iolanthe Vein Package, with grades anticipated to improve as operations advance to deeper benches.
Strategic Plant Upgrades and Expansion
Saloro’s processing plant is undergoing further expansion with the planned installation of a third XRT ore sorter and a wet screening station scheduled for Q1 FY2026. This upgrade aims to add 30,000 to 40,000 tonnes per month of sorting capacity, improve feed classification, and reduce operating costs. The separate feed system for the new sorter will allow greater operational flexibility and enhanced recovery performance.
At Mt Carbine, the company is evaluating a plant upgrade program to potentially double processing capacity. Due diligence is underway with potential funding providers, while the company awaits feedback on a grant application from the US Department of Defense, which could support this expansion.
Financial Strength and Funding Initiatives
EQ Resources secured A$4.5 million in funding through offtake prepayments during the quarter, based on a series of long-term agreements covering both Saloro and Mt Carbine operations. These contracts, valued at approximately US$124 million, provide revenue visibility amid tightening global tungsten supply, especially given China’s new export licensing regime.
The company reported positive operating cash flow from Saloro, driven by strong production and recoveries, although overall net cash used was impacted by investing activities and ongoing waste stripping at Mt Carbine. As of 31 March 2025, EQ Resources held A$1.9 million in cash and maintained available financing facilities totaling approximately A$772,000.
Corporate Developments and Leadership Enhancements
EQ Resources made several strategic leadership appointments to support its growth trajectory. CEO Kevin MacNeill transitioned to Chief Technical Officer to focus on technical improvements, while Oliver Kleinhempel assumed the CEO role, bringing continuity and strategic focus. The board welcomed Bradshaw, a seasoned tungsten industry executive with extensive international experience, and appointed David Laulau as General Manager of Mining at Mt Carbine, enhancing operational leadership.
The company is progressing its proposed acquisition of Tungsten Metals Group, which operates the largest ferrotungsten plant outside China. While definitive agreements have yet to be signed, this move would vertically integrate EQ Resources’ supply chain and diversify its product offerings.
Safety and Sustainability Initiatives
Safety performance remained strong with modest increases in lost-time injury frequency rates but continued below industry benchmarks. The company intensified safety culture through increased personal risk assessments, training programs, and proactive communication. Sustainability efforts included community engagement, educational site visits, and environmental rehabilitation programs at Saloro and Mt Carbine.
Exploration and Resource Development
Exploration activities continued at Wolfram Camp in Queensland, with soil sampling and ore characterization trials underway in collaboration with the University of Queensland and TOMRA. No material changes to mineral resources or ore reserves were reported during the quarter, maintaining a solid foundation for future growth.
Bottom Line?
EQ Resources is poised for a pivotal year as operational gains, strategic funding, and potential acquisitions set the stage for accelerated growth.
Questions in the middle?
- Will the Tungsten Metals Group acquisition finalize, and how will it impact EQR’s vertical integration?
- What is the outcome of the US Department of Defense grant application and its influence on Mt Carbine’s plant upgrade?
- How will ongoing plant optimizations at Saloro translate into sustained recovery improvements and cost efficiencies?
