EQ Resources Limited (ASX:EQR): What Drove the September 2026 Tungsten Results?

Aditi Sarkar

06 November 2026 02:45 AM AEDT

EQ Resources Limited (ASX:EQR): What Drove the September 2026 Tungsten Results?

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Highlights

Group tungsten output reached 51,233 mtu during the September quarter, up 81% quarter on quarter.
September-quarter Revenue was AUD 158.8 million, up 101% from the preceding quarter.
Operating cash inflow reached AUD 75.6 million, with closing cash of about AUD 82.4 million.
FY27 guidance calls for 240,000–280,000 mtu of tungsten production.

EQ Resources Limited (ASX:EQR) produces tungsten concentrate at Mt Carbine in Queensland and Barruecopardo in Spain. The company’s shares closed at AUD 0.31 on 5 November 2026. Its September-quarter disclosures showed higher production, revenue and cash generation at both operations, alongside Investment in processing capacity and a new FY27 guidance range. Ore access, plant performance and realised tungsten prices are central to understanding the period.

Production at Mt Carbine and Barruecopardo

EQ Resources Limited (ASX:EQR) produced 51,233 metric tonne units, or mtu, of tungsten trioxide in the September quarter of FY27, up 81% from 28,315 mtu in the June quarter. Mt Carbine produced 17,145 mtu, an increase of 31% from 13,050 mtu. At Barruecopardo, output reached 34,088 mtu, a 123% quarter-on-quarter rise. These gains followed operational efforts to improve ore access and processing performance. At Mt Carbine, gravity plant feed was 71,268 tonnes at a 0.293% tungsten trioxide grade, while average recovery rose to 78% from 75.8% in the previous quarter.

Revenue, Costs and Operating Cash Flow

For EQ Resources Limited (ASX:EQR), quarterly revenue increased to AUD 158.8 million from AUD 79 million, a 101% quarter-on-quarter movement. Sales Volume rose 69% to 49,715 mtu. Average realised price increased by 20% to USD 2,248 per mtu, making both volume and pricing relevant to revenue changes. The company reported group cash cost of USD 483 per mtu compared with USD 711 previously. Operating Cash Flow totalled AUD 75.6 million and cash at 30 September 2026 was approximately AUD 82.4 million. Quarterly EBITDA of AUD 122.5 million and net profit after tax of AUD 114 million were labelled unaudited.

Expansion and Exploration Programme

EQ Resources Limited (ASX:EQR) is implementing a AUD 39 million processing expansion and automation project at Mt Carbine, begun in June 2026. The company reported it was on track for commissioning in the third quarter of FY27, targeting an increase in crushing capacity from approximately one million to two million tonnes annually. The programme includes plant integration and automation rather than a guaranteed doubling of saleable tungsten output. The company also completed 17,233 metres of drilling at Mt Carbine and was advancing work at Barruecopardo and Wolfram Camp. Assay results and future resource updates should be assessed separately from current production.

FY27 Guidance and Operating Risks

In October 2026, EQ Resources Limited (ASX:EQR) established FY27 guidance of 240,000–280,000 mtu production, cash costs of AUD 595–691 per mtu and Capital Expenditure of AUD 80–100 million. These represent forward-looking company targets. Actual outcomes depend on feed grade, equipment reliability, recovery rates and operating conditions at both mines. Barruecopardo also faced regulatory work relating to partial non-compliance with a restoration Mining plan; the company said a previously reported temporary suspension risk had been mitigated while remediation work continued. Tungsten prices may not remain at September-quarter levels, so cash-generation performance should be evaluated over additional reporting periods.

Key Insights

EQ Resources Limited (ASX:EQR) reported measurable improvements in tungsten volumes, revenue and operating cash flow during the September quarter. Its stated FY27 production and capital programme introduce execution requirements beyond the reported quarter. Updated reserves, project commissioning, cash costs and regulatory progress provide concrete subjects for future reporting and assessment of operating continuity and financial resilience.

FAQs

Q: What was September-quarter output?

A:51,233 mtu of tungsten trioxide.

Q: What is FY27 production guidance?

A:240,000–280,000 mtu, according to the company.

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