EQ Resources (EQR) H2 2024 earnings summary

Executive summary

• Completed acquisition of Saloro S.L.U., making the group the largest independent tungsten concentrate producer outside China, and secured a $25 million placement from Oaktree Capital Management, which now holds a 15% stake.

• Achieved record production increases at both Mt Carbine and Barruecopardo operations in the second half of FY2024.

• Transitioned Mt Carbine mining operations to an owner-operator model post-FY2024, expected to deliver cost savings and operational flexibility.

• Secured a $20 million funding facility from QIC to double Mt Carbine’s processing capacity and advance underground development.

• Net loss after tax for FY2024 was $2.13 million, a significant improvement from the prior year’s $3.72 million loss.

Financial highlights

• Revenue and other income rose to $30.3 million (2023: $13.1 million), driven by expanded operations and acquisitions.

• Total expenses increased to $58.6 million (2023: $16.8 million), reflecting higher production, employee, and finance costs.

• EBITDA was negative at $18.5 million, but net loss after tax improved to $2.13 million from $3.72 million in 2023.

• Net assets increased to $56.6 million (2023: $16.3 million), supported by equity raisings and asset growth.

• Cash and cash equivalents at year-end were $3.5 million, with a net working capital deficit of $55.6 million, mainly due to short-term classification of Saloro borrowings.

Outlook and guidance

• Focus for FY2025 is on consistent production at Mt Carbine, advancing underground mining, and optimizing Saloro outputs.

• Ongoing exploration and development at Wolfram Camp and other tenements to expand resource base.

• Anticipated further growth as a leader in the critical minerals sector, with sustainability and ESG at the core.