EQ Resources Achieves Record A$79 Million Quarterly Revenue Amidst Soaring Tungsten Output from Iolanthe Vein Expansion

Record Revenue Fueled by Tungsten Price Surge and Production Growth

EQ Resources reported record quarterly revenue of A$79 million for Q4 FY2026, marking a 140% increase from A$33 million in Q3 FY2026. This outstanding financial performance was driven by a combination of soaring global tungsten prices and a significant operational production increase at the Mt Carbine mine in Queensland. The group’s average realised tungsten price rose to US$1,875 per mtu during the quarter, compared to US$962 per mtu in the previous quarter, reflecting a highly favourable market for tungsten producers.

The synergy of record production volumes and elevated prices bolstered the company’s financial strength. Group tungsten trioxide production reached 28,315 mtu in Q4 FY2026, up 20% from 23,505 mtu in Q3 FY2026 and the highest quarterly output since Q1 FY2024. Operating cash flow hit a record A$22.5 million, underscoring the company’s capacity to convert strong revenues into cash despite ongoing investments in growth and intensified operational activities across both mines.

Mt Carbine’s Production Soars on Expanded Access to High-Grade Iolanthe Vein

The Mt Carbine operation in Queensland delivered a transformative quarter with production increasing 176% to 13,050 mtu, the highest since Q1 FY2024. This surge was driven by expanded and consistent mining access to the high-grade Iolanthe vein system as operations advanced deeper into the Stage II pit. Ore mined rose sharply by 166% to 254,642 tonnes from 95,795 tonnes in Q3 FY2026, directly increasing processing plant feed and production output. The strip ratio improved significantly to 3.2:1 from 7.6:1 in the prior quarter, reflecting a higher proportion of ore extraction as mining progressed through the Iolanthe vein.

Mining activity intensified considerably, with material blasted more than doubling to 1,170,837 tonnes compared to 582,237 tonnes in Q3 FY2026. Total material extracted reached 1,059,120 tonnes, including record monthly blasting in June enabled by enhanced drill and blast designs featuring tighter hole spacing, angled holes, and double priming to minimize oversize material. Processing capacity utilisation rose accordingly, with crushing plant feed increasing to 188,322 tonnes from 103,345 tonnes in the previous quarter. Operational challenges included elevated pit water at the 315 level requiring additional pumping and workforce constraints in May that temporarily limited mining continuity, which were addressed through recruitment efforts in June.

Mt Carbine Expansion Project Approved to Double Crushing Capacity to 2 Mtpa

On 3 June 2026, EQ Resources approved a A$39 million expansion project to significantly enhance Mt Carbine’s processing capacity. The project will automate and expand the crushing circuit from approximately 1 million tonnes per annum (Mtpa) to about 2 Mtpa, effectively doubling throughput. During Q4 FY2026, A$3.5 million was spent on this project, with full commissioning anticipated in Q3 FY2027. This investment underscores management’s confidence in operational momentum and medium-term tungsten demand.

This critical infrastructure upgrade is expected to enable Mt Carbine to convert improved high-grade ore access into higher production levels. Automation will boost operational efficiency, alleviate labour constraints that have occasionally limited output, and enhance processing consistency. The timing aligns with deeper access to the Iolanthe vein, where higher ore grades and improved strip ratios create opportunities to increase throughput without proportionally raising waste mining costs. Investors will closely watch project execution, budget adherence, and timeline milestones as indicators of expanded production capacity realization.

Barruecopardo Recovers Southern Pit Access After Rare Flood Event

The Barruecopardo mine in Spain, EQ Resources’ second major asset, faced disruption in Q3 FY2026 due to a 1-in-50-year rainfall event that flooded the southern pit. Dewatering efforts continued through Q4 FY2026, with southern pit access restored on 4 July 2026, enabling cleanup and mining to resume. The first blast in the southern pit occurred on 8 July 2026, with ore processed beginning 10 July 2026, marking a return to productive mining in this area. The southern pit holds approximately 1.2 million tonnes of ore at 0.186% grade, representing a significant resource unlocked post-flood recovery.

Despite southern pit restrictions, Barruecopardo maintained productive mining in the northern pit, moving a record 2.52 million tonnes during the quarter—an 11% increase from 2.26 million tonnes in Q3 FY2026. Production totaled 15,265 mtu of WO3, down from 18,768 mtu in Q3 FY2026 due to water constraints, although processing recoveries improved steadily to 58.8% in June. The operation achieved its highest weekly output in 15 weeks during June 2026, producing 6,544 mtu of WO3 that month, indicating accelerating recovery as normal operations resume. Southern pit restoration represents a near-term production boost as mining and processing normalize.

Global Tungsten Market Tightness Drives 559% Price Increase Year-on-Year

The global tungsten market has experienced exceptional price growth over the 12 months to 30 June 2026, creating a highly advantageous revenue environment for EQ Resources. The Fastmarkets Ammonium Paratungstate (APT) benchmark price, CIF Rotterdam/Baltimore on a low-price basis, reached US$2,900 per mtu on 30 June 2026, a 559% rise from US$440 per mtu on 30 June 2025. Within the quarter, the APT price rose 4% quarter-on-quarter, maintaining an average low price of US$2,900 per mtu, reflecting strong price stability at elevated levels. This pricing surge stems from structurally tight supply amid robust demand from aerospace, defence, energy, and industrial sectors.

These supply-demand dynamics provide a significant tailwind for EQ Resources’ financial and cash flow performance. Tungsten’s critical role and limited global primary production mean EQ Resources’ two mines contribute meaningfully to global supply. The company’s production growth amid a structural supply deficit and elevated prices delivers exceptional economics for capital investment and expansion. However, tungsten prices have historically been volatile, warranting investor attention to supply dynamics, geopolitical factors, and end-market demand trends that may influence long-term price direction.

Ongoing Drilling Programs Target Resource and Reserve Growth at Both Mines

EQ Resources continues investing in resource and reserve expansion at both operations. Mt Carbine completed 41 drill holes totaling 10,759 metres in Q4 FY2026, focusing on resource expansion and definition within the current mining area. Barruecopardo initiated a 12,200-metre drilling program aimed at resource growth and in-fill drilling to improve geological understanding and identify additional ore extensions. Collectively, the group drilled over 10,000 metres during the quarter, reflecting a sustained commitment to extending mine life and expanding ore within existing footprints.

These drilling efforts are key medium-term value drivers, as successful resource growth can extend mine life, enhance reserve sustainability, and provide production planning flexibility. Barruecopardo’s in-fill drilling is especially important following the southern pit flood, potentially optimizing mining schedules and reserve recovery. Investors should watch for results from these programs, typically released via mineral resource and reserve updates, as positive exploration outcomes could support long-term production and justify further capital investments.

Potential US$12.2 Million Revenue Adjustment from Customer Invoice Error Under Review

The company identified an administrative error in invoices issued to a customer during year-end processes, potentially increasing revenue by US$12.2 million. Discussions are ongoing with the customer to resolve the matter promptly, though timing and final resolution depend on customer agreement. This amount is material relative to quarterly revenue and reflects substantial commercial volumes in the current environment. Resolution would provide additional cash inflow and strengthen the company’s financial position.

While the error and resolution efforts have been acknowledged, the financial impact remains contingent on customer approval and settlement timing. Investors should monitor updates on this matter, as successful resolution would represent a significant cash benefit and could unexpectedly enhance financial results. The nature of the issue—related to invoicing rather than operational or accounting problems—suggests a straightforward administrative correction, though timing remains uncertain pending customer confirmation.

Cash Position Strengthens to A$28 Million with A$17 Million in Receivables

EQ Resources’ balance sheet improved substantially in Q4 FY2026 following record revenue and cash flow. Cash on hand at 30 June 2026 was A$28 million, with accounts receivable at A$17 million, reflecting revenue recognition timing and payment cycles. Strong operating cash flow of A$22.5 million and disciplined capital expenditure allowed cash accumulation despite significant growth investments. The A$3.5 million spent on the Mt Carbine expansion during the quarter highlights commitment to long-term growth.

This strengthened cash position offers financial flexibility to fund the Mt Carbine expansion, manage working capital for increased production, and explore strategic opportunities. The receivables balance indicates high commercial activity, with ongoing management of payment terms and collections. The balance between cash accumulation and capital investment reflects management’s strategy to balance near-term shareholder returns with long-term growth, aligned with expanding Iolanthe vein access and tight global tungsten markets.

Operating Costs Reflect Production Mix and Investment in Operations

The group’s nominal cash cost per mtu rose to US$711 in Q4 FY2026 from US$572 in Q3 FY2026, influenced by production mix, record material movement, maintenance investments, and higher diesel prices. Mt Carbine’s cash cost fell significantly to US$1,115 per mtu from US$1,452 as production ramped up through the high-grade Iolanthe vein, while Barruecopardo’s cost remained stable at US$366 per mtu versus US$349 previously.

Management expects nominal cash costs per mtu to decline as production ramps and strip ratios improve at Mt Carbine, benefiting from operational leverage as higher ore grades enhance processing margins and reduce unit costs. Despite the quarter-on-quarter cost increase, current costs remain highly profitable at tungsten prices of US$2,900 per mtu, with Mt Carbine’s realised average price of US$1,997 per mtu well exceeding production costs. The Mt Carbine expansion, doubling throughput from about 1 Mtpa to 2 Mtpa, should further improve unit costs, especially if ore grades and strip ratios continue to advance as projected.