EQ Resources Posts Record Quarterly Tungsten Production and Sales
EQ Resources delivered its strongest quarterly tungsten output since early 2024, alongside record sales driven by higher prices and volumes, despite some operational hiccups in Spain.
- Mt Carbine production up 175% quarter-on-quarter
- Barruecopardo mining resumes after rain disruption
- Quarterly sales hit A$79 million, up 140% QoQ
- Cash on hand rises 82% to A$28 million
- Full year sales up 142% despite 29% production drop
Mt Carbine Delivers Breakout Quarter
EQ Resources Ltd (ASX:EQR) recorded a surge in tungsten production at its Mt Carbine mine in Queensland, producing 13,050 metric tonne units (mtu) in the June quarter, a 175% jump from the previous quarter and the highest output since Q1 FY2024. This leap was supported by a 29% increase in material moved, including a record 255,000 tonnes of ore mined as access to the Iolanthe Vein improved dramatically.
Barruecopardo Faces Weather Setbacks but Maintains Momentum
Meanwhile, operations at the Barruecopardo mine in Spain were hampered by a rare 1-in-50-year rain event, delaying access to the southern pit until early July. Despite this, mining in the northern pit area continued strongly with a record 2.52 million tonnes mined, an 11% increase quarter-on-quarter. However, production slipped 19% to 15,265 mtu for the quarter due to the southern pit disruption.
Financials Reflect Strong Price Environment
The company’s financials mirrored the operational gains and favourable market conditions. Quarterly sales soared 140% to A$79 million, propelled by both higher volumes and a 7% increase in the Fastmarkets Ammonium Paratungstate (APT) price to US$3,000 per mtu. Cash reserves ballooned 82% to A$28 million, a staggering 1,384% increase on the prior year, positioning EQ Resources with a robust balance sheet heading into FY2027.
Annual Performance Shows Sales Growth Despite Production Decline
For the full year ending June 2026, EQ Resources produced 118,946 mtu of tungsten, down 29% year-on-year, reflecting operational challenges including the weather impact at Barruecopardo. Yet sales more than doubled, rising 142% to A$160 million, underscoring the strength of the tungsten price environment and the company’s ability to capitalise on market conditions.
Outlook Hinges on Operational Recovery and Market Dynamics
EQ Resources plans to release a comprehensive quarterly activities report and host a webcast later in July, which will provide further detail on operational progress and strategic initiatives. The company’s recent expansions and acquisitions around Mt Carbine, including a 45% increase in tenure, suggest a concerted effort to build on this momentum and scale production capacity in line with strong tungsten demand.
Bottom Line?
EQ Resources’ record quarterly sales and cash position highlight its leverage to rising tungsten prices, but sustaining production growth amid operational challenges will be critical to maintaining this trajectory.
Questions in the middle?
- How quickly will Barruecopardo return to full production post-rain event?
- What impact will Mt Carbine’s tenure expansion have on medium-term output?
- Can EQ Resources maintain its strong cash flow amid volatile commodity prices?
