How EQ Resources Is Capitalizing on a 33% Tungsten Price Surge

Market Momentum and Price Surge

EQ Resources Limited (ASX, EQR) kicked off FY2026 with a strong quarter, buoyed by a remarkable 33% increase in the price of ammonium paratungstate (APT), the key tungsten product. The mid-price surged to US$615 per metric tonne unit (mtu) by the end of September 2025, driven by constrained supply from Chinese export restrictions and heightened demand from strategic sectors in Europe and North America. This price rally underscores tungsten's growing importance in energy, defense, and advanced manufacturing.

Operational Advances at Barruecopardo and Mt Carbine

On the production front, EQ Resources reported solid output from its Barruecopardo mine in Spain and Mt Carbine operation in Queensland, Australia. Barruecopardo mined 247,003 tonnes of ore at an average grade of 0.155% WO₃, with processing plant upgrades including the commissioning of a third XRT ore sorter and enhancements to the gravity circuit. These improvements aim to boost recovery rates and product grade, positioning the plant for a targeted capacity of approximately 14,000 mtu per month.

Meanwhile, Mt Carbine advanced southern wall stripping with 110,000 tonnes of waste moved, preparing for a ramp-up to 24/7 mining operations in Q2 FY2026. The operation produced 4,610 mtu of tungsten concentrate despite processing lower-grade stockpiles and undergoing critical maintenance. The company is optimistic about unlocking higher-grade ore bodies, which could significantly increase production volumes.

Financial Strength and Strategic Funding

EQ Resources bolstered its financial position with over A$30 million raised through a combination of equity placements, a US$7.5 million royalty agreement with Oaktree Management, and debt-to-equity conversions. Cash receipts from sales rose 16% to A$14.65 million for the quarter, while cash on hand increased substantially to A$11.5 million. The royalty agreement, pending shareholder approval, will provide ongoing funding for Barruecopardo’s expansion and Mt Carbine’s ramp-up.

Additionally, the company is progressing a US$34 million 10-year debt facility application with the US Export-Import Bank to support the Mt Carbine development. These capital initiatives reflect EQ Resources’ commitment to scaling its operations and securing a leading position in the critical tungsten market.

Leadership and Sustainability Focus

In a key leadership move, Craig Bradshaw was appointed Managing Director, bringing extensive global tungsten industry experience from Masan High-Tech Materials and H.C. Starck Tungsten Powders. His appointment signals a strategic focus on growth and operational excellence.

EQ Resources also maintained rigorous safety and environmental programs across its operations. Barruecopardo continued dust and silica control initiatives in partnership with Spanish authorities, while biodiversity efforts included monitoring Egyptian vultures. Mt Carbine reported no significant injuries, with ongoing training and compliance efforts underpinning a strong safety culture.

Outlook and Market Positioning

With tungsten prices elevated and demand stable in strategic sectors, EQ Resources is well positioned to capitalize on market dynamics. Operational upgrades and increased mining activity set the stage for higher production volumes in coming quarters. However, execution risks remain, including shareholder approval for the royalty deal and successful refinancing of existing debt facilities.

Overall, EQ Resources’ Q1 FY2026 report reflects a company advancing confidently amid a tightening tungsten market, leveraging both operational improvements and financial strength to underpin its growth trajectory.