Key Highlights

  • Group production reached 51,233 metric tonne units in the September 2026 quarter, up from 28,315 units in the prior quarter.
  • Unaudited Revenue of A$158.8 million and EBITDA of A$122.5 million were reported, roughly double the prior quarter.
  • The average realised price was US$2,248 per unit, with group cash costs falling to US$483 per unit from US$711.
  • FY2027 guidance forecasts production of 240,000 to 280,000 units, with cash costs of A$595 to A$691 per unit.

EQ Resources (ASX:EQR) has become a story about tungsten volumes and prices rather than potential, because its two operating mines are now producing at a scale that has lifted revenue and cash generation sharply. For the September 2026 quarter the company reported unaudited revenue of A$158.8 million, roughly double the prior quarter.

 

A tungsten producer with two mines

EQ Resources Limited is an ASX-quoted producer of tungsten concentrates, classified by the ASX within Materials. It operates Barruecopardo in Salamanca Province, Spain, and Mt Carbine in North Queensland, and it has also designed an initial 8,000-metre drilling programme at Wolfram Camp.

The ASX lists it in the S&P/ASX 300 and S&P/ASX Small Ordinaries, among other indices. Output is measured in metric tonne units of tungsten trioxide, where one unit equals 10 kilograms.

 

What the September quarter showed

Group production reached 51,233 units, up from 28,315 in the June 2026 quarter, with Barruecopardo contributing 34,088 and Mt Carbine 17,145. Barruecopardo is the lower-cost operation, at US$366 per unit against US$716 at Mt Carbine. Sales rose to 49,715 units.

The average realised price was US$2,248 per unit, against US$1,875 in the prior quarter, while group cash costs fell to US$483 per unit from US$711. The company reported unaudited EBITDA of A$122.5 million and net profit after tax of A$114 million.

Operating cash flow was A$75.6 million, and closing cash was A$82.4 million per the quarterly cash flow statement. Drawn Debt was A$29.55 million, mostly a prepayment Facility with trader Traxys, which is secured and matures in March 2029.

In its first FY2027 guidance, the company forecast production of 240,000 to 280,000 units, cash costs of A$595 to A$691 per unit and Capital Expenditure of A$80 million to A$100 million.

A A$39 million expansion at Mt Carbine, which would double crushing capacity from about one million to about two million tonnes a year, is on track for commissioning in the March 2027 quarter. Drilling is under way at Mt Carbine, Wolfram Camp and in Spain.

 

A United States processing option

On 14 September 2026 the company signed a binding agreement to take a 10 per cent interest in a joint venture to restart an ammonium paratungstate plant at the Springer project in Nevada. The Elmet Group holds 70 per cent and operates it, and Blue Moon Metals, which contributes the existing plant, holds 20 per cent. One of seven board seats goes to EQ Resources.

Initial restart costs of about US$75 million are to be funded by Elmet, supported by United States Department of War financing. EQ Resources would Supply 4,000 tonnes of contained tungsten trioxide over eight years and could access up to 1,000 tonnes a year of plant capacity for five years.

The agreement remains subject to definitive documents, Due Diligence and approvals, with principal agreements targeted within 90 days.

 

Risks to weigh

Earnings are highly sensitive to the tungsten price, which the company does not control, and the quarter's results are unaudited. Both a higher realised price and lower unit costs drove the margin, so a fall in either would narrow it.

Barruecopardo's run-of-mine stockpile of 669,541 tonnes supports feed into the December 2026 quarter, so continued output depends on Mining performance. The report also contains small internal discrepancies, including closing cash of A$82.3 million in the text versus A$82.4 million in the cash flow statement.

Expansion spending, the Nevada Partnership and drilling outcomes each carry execution risk.

 

Dates to watch

Readers can follow the targeted 90-day window for the Nevada definitive agreements, which runs from mid-September 2026, and the Mt Carbine commissioning in the March 2027 quarter. The company's August 2026 update showed record monthly revenue of A$55.1 million, and the next Quarterly Report will test whether the September result can be sustained.