EQ Resources (EQR) investor relations material

Executive summary

• Tungsten prices surged, with APT CIF Rotterdam/Baltimore low-price reaching US$2,800/mtu on 31 March 2026, up 240% quarter-on-quarter and 700% year-on-year, driving improved market positioning and investor interest.

• Barruecopardo operations were severely impacted by record rainfall, reducing mining and processing volumes as efforts focused on pit access restoration, but long-term output is not expected to be affected.

• Mt Carbine achieved record quarterly material movement despite wet season constraints, with ore mined increasing materially as access to higher-grade zones improved.

• Strategic drilling and expansion programs are underway at both Barruecopardo and Mount Carbine to extend mine life and increase reserves.

• Governance enhancements included appointing Michael Nossal as Independent Non-Executive Chairman and expanding the corporate team, with increased institutional interest from the U.S. and Europe.

Financial highlights

• Quarterly revenue reached A$32.6 million, with cash receipts of A$19.8 million after adjusting for prepayments and increased receivables.

• Receivables at quarter-end totaled A$15 million, with cash on hand at March 31 at A$15.8 million, rising to approximately A$22 million by late April.

• Net cash outflows from operating activities were A$11.5 million, mainly due to reduced production and shipment timing.

• Spanish debt was refinanced from EUR 20 million to EUR 15 million, improving working capital, and Oaktree debt of AUD 7.25 million was converted to equity.

• Net cash from financing activities was A$10 million, including A$19 million from options exercised and A$25 million from a new prepayment facility.

Outlook and guidance

• Production ramp-up at Mt Carbine is expected to accelerate, with April output likely to exceed the entire March quarter and targeting 10,000–12,000 MTU per month, aiming for 1,750 tonnes/year, with potential to reach 2,500 tonnes/year post-expansion.

• Barruecopardo is positioned to regain access to higher-grade zones in Q4 FY2026, with improved throughput and concentrate production anticipated.

• Expansion at Carbine will double crushing capacity and lower operating costs by 30% per tonne processed.

• Sufficient working capital is available to support ongoing operations and ramp-up, with no immediate need for additional funding.