EQ Resources (EQR) Q1 2026 TU earnings summary

Executive summary

• Tungsten market prices surged 33% quarter-on-quarter, with strong demand and constrained supply, especially from China, driving record imports and customer interest exceeding current production capacity.

• Barruecopardo and Mt Carbine operations advanced pit development, processing upgrades, and waste stripping, with Barruecopardo achieving production targets and Mt Carbine preparing for 24/7 mining.

• Cash receipts from sales rose 16% to A$14.65 million, and over A$30 million in new funding was secured through royalty, equity, and debt-to-equity agreements.

• Craig Bradshaw was appointed Managing Director, strengthening the leadership team for the next growth phase.

Financial highlights

• Cash on hand at 30 September 2025 was A$11.47 million, up from A$1.87 million at 30 June 2025.

• Net cash used in operating activities was A$17.66 million, including A$14 million in payments to overdue creditors and A$2.4 million in contractor prepayments.

• Net cash from financing activities totaled A$30.23 million, mainly from equity placements and a US$7.5 million royalty funding agreement.

• Net cash used in investing activities was A$2.93 million, primarily for Barruecopardo plant improvements.

• Payments to related parties during the quarter were A$249k for director fees.

Outlook and guidance

• Ongoing ramp-up at Mt Carbine aims for 24/7 mining in Q2 FY2026, with a staged increase in monthly tonnage as Stage II advances.

• Barruecopardo upgrades position the plant for higher recoveries and support a planned ramp-up in mining activity in Q2 FY2026.

• Management expects positive operating cashflows in future quarters as improvement projects are completed and higher-grade ore is accessed.

• The company is actively pursuing refinancing options for €20 million Saloro debt due in December 2025 and January 2026.