How EQ Resources Is Powering Tungsten Growth with $20.6M Capital Boost
EQ Resources delivered a robust Q4 FY2025 with strong tungsten output from its Spanish and Australian operations, bolstered by strategic capital raises and key plant enhancements.
- Q4 tungsten production of 36,322 mtu, led by Saloro’s 28,203 mtu
- A$20.6 million equity raised to support operations and growth
- Third XRT ore sorter installation progressing on schedule
- Secured potential US$34 million 10-year debt facility from US EXIM Bank
- Exploration at Wolfram Camp shows promising tungsten recovery and grade uplift
Operational Highlights
EQ Resources Limited (ASX – EQR) reported a solid finish to FY2025, with consolidated tungsten concentrate production reaching 36,322 metric tonne units (mtu). The Spanish Saloro operations led the charge, producing 28,203 mtu, supported by steady processing and ongoing plant upgrades. Meanwhile, Mt Carbine in Queensland, Australia, contributed a modest 6,983 mtu, maintaining stable output despite lower-grade feed and a strategic pit redesign aimed at unlocking higher-grade ore zones.
Saloro’s throughput increased by 14% quarter-on-quarter, aided by the installation of a third XRT ore sorter and upgrades to gravity concentrators targeting ultrafine scheelite recovery. These enhancements position the operation for improved flexibility and recovery in FY2026. At Mt Carbine, mining activities focused on accessing the South Wall and Iolanthe orebody, with a 41% decrease in total material movement reflecting a transitional phase in pit development. Processing throughput remained steady, supported by stockpiled ore and low-grade material.
Financial Strengthening and Capital Strategy
Financially, EQ Resources bolstered its position by raising A$20.6 million through a May placement and a June share purchase plan. The company also reduced Saloro’s outstanding debt by €5 million and secured extended guarantees for remaining credit facilities. Notably, EQR received a Letter of Interest from the US Export-Import Bank for a potential US$34 million 10-year debt facility aimed at expanding Mt Carbine’s processing capacity and extending mine life.
Group cash receipts from customers totaled A$12.6 million for the quarter, with revenue of A$16.1 million. Despite operational challenges, including logistics delays and fluctuating feed grades, the company maintained stable plant availability and demonstrated resilience in managing cash flows. The appreciation of the US dollar against the Australian dollar further enhanced revenue margins, given EQR’s unhedged exposure to USD-denominated tungsten prices.
Market Context and Exploration Advances
The tungsten market remains tight and strategically important, with geopolitical factors driving supply constraints and price increases. Fastmarkets reported a 22% quarter-on-quarter rise in ammonium paratungstate (APT) prices to US$463 per mtu at the end of June 2025. Demand from critical sectors such as automotive, aerospace, and semiconductors continues to underpin market fundamentals, with limited substitutes for tungsten in these applications.
Exploration efforts at the Wolfram Camp Project in Far North Queensland yielded encouraging results, with bulk sample testing demonstrating 86% tungsten recovery and a 16-fold grade increase via XRT sorting. These findings support EQR’s regional tungsten hub strategy, leveraging existing infrastructure and workforce to enhance sustainable resource development.
Leadership and Sustainability Initiatives
To support its global growth ambitions, EQR appointed Andrew Goledzinowski as Senior Advisor for Government Relations and Jonathan Kort as Chief Financial Officer. Both bring extensive experience in diplomacy, finance, and mining operations, strengthening the company’s leadership team.
On the sustainability front, Saloro continued to advance safety culture despite a rise in lost time injuries, while Mt Carbine achieved an 80% reduction in total recordable incidents. The company also engaged in community initiatives, including supporting Australia’s Cancer Council Biggest Morning Tea, reflecting its commitment to social responsibility.
Bottom Line?
With plant upgrades nearing completion and a strong capital base, EQ Resources is well-positioned to capitalize on rising tungsten demand and evolving market dynamics.
Questions in the middle?
- Will the US EXIM Bank debt facility be finalized and deployed as planned?
- How will the third XRT ore sorter impact recovery rates and production volumes in FY2026?
- What are the next steps for scaling up tungsten production at Wolfram Camp?