EQ Resources (EQR) H1 2025 earnings summary

Executive summary

• Achieved record tungsten concentrate production of 96,285 mtu in H1 FY2025, up 14% from H2 FY2024, with strong operational growth at both Mt Carbine and Saloro mines.

• Transitioned Mt Carbine to owner-operator mining, resulting in cost savings, improved flexibility, and upskilling of the local workforce.

• Saloro operations delivered record recovery rates and efficiency gains, with a 422% increase in XRT Ore Sorter yield and consistent recovery above 60%.

• Completed acquisition of 100% of Mt Carbine Retreatment JV and announced plans to acquire Tungsten Metals Group, expanding vertical integration.

• Secured A$4.9 million in new equity and A$3 million in convertible notes to support growth and acquisitions.

Financial highlights

• Revenue for H1 FY2025 was $34.8 million, a significant increase from $6.1 million in H1 FY2024.

• Net comprehensive loss widened to $24.4 million (vs. $7.9 million loss in H1 FY2024), reflecting full consolidation of Mt Carbine and Saloro operations.

• Cash and cash equivalents at period end were $2.0 million, with net assets of $48.1 million.

• Operating cash outflow was $4.2 million, with $7.5 million used in investing activities and $10.2 million raised from financing activities.

Outlook and guidance

• Expectation of higher-grade ore access at both Mt Carbine and Saloro in H2 FY2025, supporting further production growth.

• Saloro plant expansion underway, with a 50% increase in XRT sorting capacity planned.

• Ongoing due diligence for the acquisition of Tungsten Metals Group, aiming for vertical integration and margin uplift.

• Anticipated improvement in water supply at Mt Carbine and continued process optimisations at Saloro.