EQ Resources (ASX:EQR) Posts Record Revenue as Barruecopardo Tungsten Output More Than Doubles

Aditi Sarkar

29 October 2026 09:10 PM AEDT

EQ Resources (ASX:EQR) Posts Record Revenue as Barruecopardo Tungsten Output More Than Doubles

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Highlights

Group tungsten production rises 81% to 51,233 mtu of WO3, with Barruecopardo setting a site record at 34,088 mtu — more than double the prior quarter.
Record group revenue of A$158.8 million and unaudited EBITDA of A$122.5 million; cash climbs to A$82.4 million from A$28.2 million.
First FY27 guidance issued: 240,000–280,000 mtu of production at cash costs of A$595–691 per mtu and capex of A$80–100 million.
The A$39 million Mt Carbine expansion is on track to commission in the March 2027 quarter; a 10% stake in a US APT joint venture is also revealed.

Tungsten supply chains outside China are thin, and EQ Resources (ASX:EQR) is making the most of it. In the September quarter of FY27 — the company's first full period after restart work at its Spanish mine — group tungsten production nearly doubled and record financial results followed. The quarterly report, lodged on 28 October 2026, also issued the company's maiden FY27 annual guidance.

Barruecopardo Leads the Way

The Barruecopardo mine in Spain, operated through subsidiary Saloro, produced 34,088 mtu of WO3 — more than double the June quarter. The improvement came from tripling ore throughput to 918,798 tonnes and lifting gravity feed grade to 0.241% WO3 from 0.126%. Recovery reached around 60%, peaking at 62.3% in September. That month's output of 11,658 mtu followed a record 12,719 mtu in August. Cash costs at Barruecopardo were US$366/mtu — roughly half the rate at Mt Carbine.

Mt Carbine Sets a Throughput Record

At Mt Carbine in Queensland's Atherton Tablelands, total material mined was a record 1,185,113 tonnes, including 339,563 tonnes of ore. Production rose 31% to 17,145 mtu, and gravity recovery climbed steadily from 73.7% in July to 84.0% in September. Cash costs at Mt Carbine were US$716/mtu. Group average cash costs improved roughly 30% to US$483/mtu across the two operations.

Record Financial Results

Group revenue for the quarter reached a record A$158.8 million, up 101% on the prior quarter. Unaudited EBITDA was A$122.5 million and unaudited net profit after tax A$114 million. Sales were 49,715 mtu at an average realised price of US$2,248/mtu — up 20% on the June quarter. Operating cash flow was A$75.6 million and cash at 30 September rose to A$82.4 million from A$28.2 million. Drawn debt totalled approximately A$29.6 million, the main component being an A$22.5 million secured prepayment facility with Traxys Europe maturing in March 2029.

Mt Carbine Expansion and New US JV

The A$39 million Mt Carbine Expansion and Automation Project, which began in June 2026, is designed to roughly double crushing capacity from approximately 1 million to 2 million tonnes per year. All procurement packages have been awarded and major equipment deliveries have started; the company says the project remains on track and within budget for commissioning in the March 2027 quarter. Separately, EQ Resources has taken a 10% stake in a US tungsten processing joint venture with The Elmet Group (70%) and Blue Moon Metals (20%), targeting a restart of the 4,000 tonnes-per-annum Springer APT plant in Nevada.

Guidance and Risks

FY27 production guidance of 240,000–280,000 mtu of WO3 was issued for the first time, with cash costs of A$595–691/mtu (US$416–483/mtu) and capex of A$80–100 million. Drilling at Mt Carbine concluded on 15 September after 17,233 metres in 65 holes, and an initial programme at Wolfram Camp is awaiting staged cultural heritage clearances; assays from both are pending. The company's lost-time injury frequency rate at Barruecopardo rose to 22.3 from 15.8, and a partial non-compliance with the mine's restoration plan is still being resolved with regulators. Grade at Barruecopardo eased in September, and recovery should be monitored against the 62% peak.

FAQs

Q: How did Barruecopardo produce so much more tungsten this quarter?

A: Ore throughput tripled to 918,798 tonnes and gravity feed grade roughly doubled to 0.241% WO3, combining to produce 34,088 mtu — more than double the June quarter, despite recovery reaching only around 60%.

Q: What is EQ Resources' FY27 guidance?

A: The company issued its first FY27 guidance in this report: production of 240,000–280,000 mtu of WO3, cash costs of A$595–691 per mtu and capital expenditure of A$80–100 million.

Q: What is the Mt Carbine expansion project?

A: The A$39 million expansion targets roughly doubling Mt Carbine's crushing capacity to approximately 2 million tonnes per year. It is on time and within budget for commissioning in the March 2027 quarter.

Q: What is the US tungsten JV?

A: EQ Resources holds 10% of a joint venture with The Elmet Group (70%) and Blue Moon Metals (20%) to restart the Springer APT plant in Nevada, which has a design capacity of 4,000 tonnes per year of ammonium paratungstate.

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