Announcement PDF Download This Presentation: EQ RESOURCES LIMITED A Globally Significant Critical Mineral Producer Noosa Mining Conference 18 July 2024 ASX : EQR Disclaimer Competent Person's Statement • The information in this presentation partly relates to the outcomes of the Mt Carbine Bankable Feasibility Study Update (May 2023), made available through the Company’s website www.eqresources.com.au/. • The Company confirms that it is not aware of any new information that materially affects the information included in the corresponding market announcements and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. General Disclaimer • The material contained in this document is a presentation of general information about the Company's activities current as at the date of this presentation. It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes, as it does not take into account your investment objectives, financial position or needs. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate. • This document may contain forward-looking statements with respect to the financial condition, results of operations, and business strategy of the Company. These forward-looking statements are based on estimates, projections and assumptions made by the Company about circumstances and events that have not yet taken place. Although the Company believes the forwardlooking statements to be reasonable, they are not certain. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond the Company's control, and which may cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results). • The Company makes no representation or warranty as to the accuracy of any forward-looking statements in this document and undue reliance should not be placed upon such statements. • Forward-looking statements may be identified by words such as “aim”, “anticipate”, “assume”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “should”, “will”, or “would” or the negative of such terms or other similar expressions that are predictions of or otherwise indicate future events or trends. The forward-looking statements included in this document speak only as of the date of this document. The Company does not intend to update the forward-looking statements in this document in the future. 2 Corporate Update 2023 - To Date (Share Price Performance & Key Announcements) Key Statistics Share Price A$0.048 per share 2 Securities on Issue Shares 2.065B / Options 205m Market Capitalisation A$ 99.1 million 3 5 1 4 Top 20 Shareholders >60% (8% Board/Management) Net Debt (March 24) A$41.1m Spain* - A$10.1m Australia** Enterprise Value A$150.3m 6 7 0.09 400 0.08 350 0.07 300 0.06 250 0.05 200 0.04 0.03 150 0.02 Jan-21 100 Jan-22 Share Price Jan-23 Jan-24 APT PRICE (USD) Source: FastMarkets APT Price Rotterdam (US$/mtu, mtu = 10kg WO3) APT Price USD Share Price AUD *Spanish Banks Providing Loans **Aust. Debt incl. Cronimet Working Cap Facility $3m & Offtake Facility $5m. 1 64% increase of Mt Carbine Indicated Resources (In-Situ) – Announcements 04 April 2023 (link) 2 EQR awarded Permit for historic Wolfram Camp Mine – Announcement 27 July 2023 (link) 3 Tungsten Output at Mt Carbine Increases 181% Quarter-On-Quarter – Announcement 03 October 2023 (link) 4 EQR completes Acquisition of Saloro SLU and $25m Placement with Oaktree – Announcement 18 January 2024 (link) 5 Saloro adds 69% of Measured and Indicated Resources to EQR’s Inventory – Announcement 01 February 2024 (link) 6 7 Saloro XRT Sorting Performance exceeds Expectations, adding 26% more Material to Gravity Plant – Announcement 15 February 2024 (link) QIC Approves A$20M Funding for Mt Carbine Expansion – Announcement 8 May 2024 (link) 3 Consistent Board & Leadership Team Diverse and Experienced Board & Leadership Team Kevin MacNeill - Chief Executive Officer • • • • Interim CEO & Senior Technical Advisor since May 2019, CEO since January 2020. 35+ years in mining project development globally. Expertise in mineral processing, specifically tungsten. Past President of Etruscan Diamonds, founded Specialized Metallurgical Projects. Oliver Kleinhempel - Non-executive Chairman • Non-executive Director since August 2019, Chair since April 2020. • Experience in project development, finance, commodity trading. • Previous roles at Outotec, Ferrostaal Group, CRONIMET. • Executive Director at CRONIMET Group. Richard Morrow - Non-Executive Director Stephen Weir- Non-executive Director • • Appointed in January 2024, representing Oaktree Capital Management. Experience in corporate advisory, project finance, construction management. Former CEO of Magnetite Mines Ltd, Member of the Australian Institute of Company Directors, GBA Capital Advisory Board. • • • • Stephen Layton - Non-executive Director • • • Zhui Pei Yeo - Non-executive Director Background in executive management, project planning, resource management. Works in system integration in telecoms in SouthEast Asia. Executive director at a steel-product manufacturer. • • • Tony Bainbridge - Chief Geologist • • • Focus on Mt Carbine’s ‘King-Vein’ style mineralisation. Experience in tungsten projects in South Korea and Africa. Director at Asia Interplay Mining Ltd & AMB Exploration Pty Ltd Over 30 years as a sharebroker, interested in resources sector. Ex Chairman of Melbourne Mining Club. Investment roles at Lowell Resources Fund Management; Fellow of AusIMM. 35+ years in equity capital markets in the UK and Australia. Experience in ASX listings, corporate advisory. Directorships at Mithril Resources Limited Ian Kirkham – Senior Financial Adviser • • • 25 years in the mining oil and gas sector Expertise in debt and equity financing, treasury services, corporate secretarial services Past CFO of Eastern Star Gas & Warrego Energy Ltd 4 APT Price Update APT Price Rotterdam - High (US$/mtu) 365 360 US $ / mtu 355 350 345 340 335 330 325 320 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Source: FastMarkets APT Price Rotterdam (US$/mtu, mtu = 10kg WO3) Average Monthly High Price 5 Tungsten Uses Critical Alloy Element, Without Substitute in Most Applications Aviation Aerospace Automotive Heavy Machinery Heavy Industry Tools & Construction Medical Military EV Battery Development Green Energy Science & Tech Micro Electronics 6 Tungsten - A Critical Metal EQR Is Unhedged, Provides Spot Price Exposure To a Tight Market One of the Most Important Critical Materials according to European Commission • • • • Tungsten is declared by the European Commission to be a “critical raw material” as a result of high supply-risk and high economic importance Tungsten Market dominated by non-OECD members ◼ China accounts for over 83% of world Tungsten primary (mining) production ◼ Unique properties make Tungsten an essential industrial metal On March 7, 2018, U.S. Congress passed the “National Strategic and Critical Minerals Production Act” (H.R. 520) defining and including tungsten as a “critical mineral” Western Governments world-wide are becoming increasingly focused upon the importance of critical raw materials (incl tungsten) supply Down-stream Tungsten end users are becoming increasingly worried about lack of visibility on future raw material supply ◼ EU: The Most Economically Important Critical Material Raw Materials Critical Non-critical Niobium Borate Graphite Scandium Indium PGMs ❑ Highest melting point of all metals and highest tensile strength, high density, hardness close to diamond, thermally and chemically stable, excellent conductor, and environmentally benign ❑ End-market application for light and heavy industrial, energy and military uses include in heavy metal alloys such as high-speed steel, from which cutting and pressing tools are manufactured Benchmark pricing continues upward trend considering tungsten’s strategic relevance and precarious supply / demand situation Primary Tungsten Production by Country Tungsten Reserves by Country 1.1% 1.1% 0.8% 0.5% 0.8% 1.4% 0.3% 0.1% 2.7% 1.2% 1.5% 1.8% 3.0% Beryllium 5.7% Bauxite Tungsten SUPPLY RISK Germanium Baryte Gallium Rhenium Lithium 10.8% 51.4% Vanadium Hafnium Silicon 32.5% Cobalt Phosphate Rock Manganese Tantalum Chronium Tin Tellurium Molydbenum Iron Ore Feldspar Potash Magnesite Kaolin Clay Silver Sulphur Gypsum Zinc Aluminium Talc Nickel Titanium Silica Sand Gold Copper Aggregates Limestone Lead 83.3% Total World – 79kt Total World – 3,700 kt Coking Coal ECONOMIC IMPORTANCE China Portugal Other Countries Korea, North Russia Spain Vietnam Rwanda Bolivia Austria 7 Supply & Market Outlook EQR Is Unhedged, Provides Spot Price Exposure To a Tight Market Forecast Scenarios EQR Consolidated Group tWO3 Production Projections* 5,000 4,000 Target 3,000 5,000t WO3 p.a. (up to 50% of Western Mine Supply) 3,000 2,000 Distribution End-Use (2022) 1,000 *** FY2022 FY2023 FY2024 Mt Carbine Saloro FY2025 Asset #3 FY2026 FY2027 Asset #4 *FY 2022, FY 2023, FY 2024 Actuals Onwards Projections. 100% Equivalent WO3, Wet Weight *** *** Fastest growing markets. Source: ITIA 2022 8 Noosa 2021 EQR Mt Carbine Tungsten Mine and Quarrying Operations, QLD, Australia. 9 Noosa 2022 EQR Mt Carbine Tungsten Mine and Quarrying Operations, QLD, Australia 10 Noosa 2023 EQR Mt Carbine Tungsten Mine and Quarrying Operations, QLD, Australia 11 Noosa 2024 EQR Mt Carbine Tungsten Mine and Quarrying Operations, QLD, Australia 12 Wolfram Camp 2024 Wolfram Camp Historical Operations, QLD, Australia Saloro 2024 Saloro Tungsten Mine, Barruecopardo, Spain Vertical Integration Opportunities Tungsten Cluster - Australia EQR’s positioning as a leading source of responsibly mined & non-conflict tungsten concentrate provides the company with significant leverage: EQR Position in Global (ex-China/Russia) Producing Countries QUEENSLAND EQR Awarded Permit for Historic Wolfram Camp Mine. 27 Jul 2023 (link) Tungsten Cluster - Spain Potential Partnerships, Structures & Options being explored: • Expand strategic partnerships, while M&A options being explored • EQR-Masan Memorandum Of Understanding signed in 2023: Link • Toll treat EQR concentrate to APT - Global market has capacity to absorb & demand growth is forecasted • Downstream players interested in securing guaranteed supply 15 Mt Carbine (Australia) Mt Carbine Open Pit & Processing Plants Mt Carbine Mine Is Australia’s Leading Tungsten Mine and Is Consistently Exporting Concentrate to Global Consumers Resource Classification Tonnes (Mt) Grade (% WO3) WO3 (mtu) Indicated 10.13 0.08 759,450 Indicated 2.75 0.07 178,517 Inferred 0.83 0.06 53,789 Subtotal 13.71 0.07 991,756 Indicated 18.06 0.30 W atershed 5,405,901 In-Situ Inferred 10.68 0.30 3,217,311 28.74 42.45 0.30 All Subtotal Total 8,623,212 9,614,968 Orebody Low-Grade Stockpile Mt Carbine • Discovered 1895 - Closed 1982 - Re-opened 2020 Reserve Category • Life of Mine: 2029 Open Cut - 2032 on LGSP ROM Tonnes (Mt) WO3 (%) Contained WO3 (mtu) Open Cut - Proven - - - Open Cut - Probable Open Cut - Total 5.93 5.93 0.28% 0.28% 1,660,400 1,660,400 LGSP - Proven - - - LGSP - Probable LGSP - Total 9.77 9.77 0.075% 0.075% 732,750 732,750 • Potential 7 years Underground Mining, Scoping Study • 19 years Mining Permit • Production ramping up to 3,500 tonnes 50% WO3 /year • 100 staff and 35 contractors • A$50 million expenditure in the development • Proximity to international export channels underpins low-cost production W olfram Camp Ref ASX Announcements: 4th April 2023: 64% Increase of Mt Carbine Indicated resources (In-Situ): Link.. 18th May 2023: 43% Increase in Mt Carbine Reserves from Western Pit Extension: Link. In Situ Inferred Resources: around 17% accessible Open-Cut, 83% Underground • 130km via sealed highway to Cairns International Airport 16 QIC - $20M Facility For Mt Carbine Expansion Queensland Investment Corporation (QIC) provides a $20million 3-year loan facility in two tranches from its Queensland Critical Minerals & Battery Technology Fund: • Tranche A: $12m will double processing capacity to 2mtpa and start underground drill testing • Tranche B: $8m to continue underground drill testing and start underground trial mining Deputy Premier, Treasurer and Minister for Trade and Investment Cameron Dick commented: “Our investment through the Queensland Critical Minerals and Battery Technology Fund provides a pathway for EQ Resources to extend the existing mine by further exploring tungsten resources accessible through underground mining. New plant equipment, drill testing and trial mining is forecast to increase capacity and extend the mine’s life by at least five years, ensuring global demand for tungsten continues to deliver local opportunities for Far North Queenslanders.” QIC’s State Chief Investment Officer Allison Hill commented: “Securing additional tungsten mineralisation will strengthen Queensland’s position as a significant contributor to global critical minerals supply chains. There are relatively few mines globally in a position to fill anticipated supply-demand gaps for tungsten as existing outputs are challenged and demand for clean energy technologies grows.” 17 Mt Carbine - Doubling Plant Capacity Ongoing Est. Completion Q2-Q3 FY2025 Monthly Throughput 166k tonnes ** 83k tonnes Processing Costs A$16.55 /tonne A$11.30 /tonne 80% recovery ** *Nominal capacity ** Providing by-product revenue 18 Mt Carbine Veins On The Pit Face And Grade Vein 0.05-0.1% WO3 >0.2% WO3 0.1-0.2% WO3 Existing Decline and Underground Development Mt Carbine Existing Decline - Historical Pictures 1986 Mt Carbine Existing Decline – RE-OPENED 8 JULY 2024 20 Mt Carbine - Exploration & Underground Potential Iron Duke 2 1 North West Pit Extension 1 Hole EQ026 5.95m@0.94% WO3 Resources Drilling • BFS Pit Target to bring in more resources from inferred to indicated 2 Exploration Drilling Iron Duke zone 3 Hole EQ026 depth extents Resources: Indicated Resources Extension Hole Resources: Inferred Resources Existing decline Planned development 3 Target Zone 21 Two High Grade Zones To Be Investigated With Further Drilling Iron Duke Western Extensions Saloro (Spain) as Latest Member of EQR Group Saloro (Spain) as Latest Member of EQR Group Europe’s Largest Tungsten Mine, With Outstanding ESG Credentials, Additional Ramp-Potential and Regional Exploration Upside World-class Processing Plant Orebody In-Situ Resource Classification Tonnes (Mt) Grade (% WO3) WO3 (mtu) Measured 10.05 0.19 1,920,400 Indicated 10.46 0.17 1,820,000 Inferred Total 3.86 24.37 0.26 0.20 999,300 4,739,700 Ref. ASX Announcement 1st February 2024. Saloro adds 69% of measured and indicated resources to EQR’s in-situ resource inventory. Link • Discovered 1900 - Closed 1982 - Re-opened 2019 Barruecopardo Open Pit • 10 years mine plan (Ore Reserve estimate update pending) • Mining lease until 2044 • Production 2,000 tonnes 65% WO3 /year • 90 staff and 40 contractors • A$200 million expenditure in the development • On the border with Portugal, proximity to international export channels 24 Saloro - Recovery Optimisation 38% to 70% XRT Sorters Disruptive Technology in the Tungsten Market • XRT Sorters added 26% more material to the downstream Gravity Plant starting Q3 FY2024. • SALORO PROCESS FLOW 340,000 tonnes stockpile of previously discarded >6mm ore now available for reprocessing, with an estimated 19,894 mtus contained. 38% recovery Target 70% recovery 25 Wolfram Camp – EQR Awarded EPM Opportunity & Strategic Rationale Wolfram Camp Historical Operations Reported Reserve and Mineral Resource from the Wolfram Camp Deposit Orebody Reserve Classification Tonnes (Kt) Grade (% Wo3) Grade (%Mo) Wolfram Camp Probable 375 0.22 - Orebody Resource Classification Tonnes (Kt) Grade (% Wo3) Grade (%Mo) Indicated 514 0.23 0.07 Inferred 1,879 0.31 0.08 Total 2,393 0.29 Mt Carbine 0.07 Wolfram Camp (Wheeler,2015). The Mineral Resource is inclusive of the Reserve. NEQ Deposit Atlas - Wolfram Camp Tungsten Deposit or Wolfram Camp- Technical Report EQR Awarded Permit for Historic Wolfram Camp Mine. 18 June 2024 (link) Opportunity Strategic Rationale • • Historical resource adds 2,393Kt @ 0.29% WO3 under EQR management. • • Perfectly situated within a Critical Minerals Hub (W, Sn): Cluster Potential in region. Two Primary Exploration Zones: Wolfram Camp & Bamford Hill- • Potential for a processing hub 477 km2 area. • Proximity: 2-hours from Mt Carbine by good road infrastructure. ~ 5M tonnes Low Grade Stockpile and Tailings containing • Able to share management costs. • Strong potential for economic deposit. • Government support. Tungsten, Molybdenum and Bismuth (recent work done by University of QLD highlights potential). 26 EQR Near Term Catalysts - Estimate Timing Mt Carbine Operations Increasing scalping in the LGSP, bringing LGSP forward Q2 CY2024 Doubling Plant Capacity Q4 CY2024 24,000 meters drilling, to bring Inferred to Indicated Resources, new Ore Reserves announcement Q4 CY2024 BFS on the Underground Mining Q4 CY2024 Reopening of the underground decline and trial mining Q1 CY2025 Wolfram Camp / Bamford Hill exploration starts Q3 CY2024 Saloro Operations Recovery improvement through newly installed XRT Sorter Plant and Gravity Plant debottlenecking Q2 CY2024 Purchase of 3rd XRT Sorter Q3 CY2024 Exploration along strike Q3 CY2024 New Ore Reserves announcement Q3 CY2024 27 What We Care About Website ESG Showcase Page: Mt Carbine & Saloro Genuine ESG Performance https://www.eqresources.com.au/site/sustainability/esg-showcase 28 Strategic Partners Endorsement Through Funding & Grants Strong Support for Critical Minerals Projects in Australia Queensland METS Collaborative Projects Fund (METS Ignited) ASX Announcement 24 July 2020: Government Support for Mt Carbine Mine Waste Transformation Initiative Advanced Manufacturing Growth Center (AMGC) ASX Announcement 25 January 2022: Federal Government Co-Invests in High-Tech Ore Sorting Critical Minerals Accelerator Initiative (CMAI) ASX Announcement 19 September 2022: Federal Government Funding for Mt Carbine Reconfirmed QIC Funding ASX Announcement 8 May 2024: QIC Approves A$20M Funding for Mt Carbine Expansion 29 A Globally Significant Tungsten Raw Materials Supplier ESTABLISHED LOW-COST PRODUCTION Lowest quartile of global cost curve and enroute to tripling upstream nameplate capacity. Australia's largest primary tungsten producer, accelerating production. Acquisition of Saloro (Barruecopardo Mine) makes EQR the largest western supplier of tungsten raw materials. SECURED OFFTAKE Secured offtake via CRONIMET at fair market value. Global acceptance of product from both EQR mines, with shipments to major Asian, US, and European consumers. OPERATIONAL UPSIDE Both mines have scaled up production: fully permitted, infrastructure in place, low-cost expansion ongoing, government supported. LARGE ECONOMIC RESOURCES Both resources offer economic grades above world average and have a Life Of Mine >10 years. Ongoing drilling programs at defined targets provide upside potential. Underground at Mt Carbine provides upside potential. Both located in Tier 1 historic regional mining clusters. POSITIVE MARKET CONDITIONS & OUTLOOK Tungsten headed into significant supply deficit and geographical sourcing restrictions. Increasing commodity price forecast and favourable supply-demand dynamics underscore EQR's strategic relevance in the critical minerals sector. Classified as a critical mineral by the US, UK, EU, Japan, South Korea, and India. GENUINE ESG PERFORMANCE EQR is committed to resource efficiency, minimising environmental impact, and delivering positive societal impact. Recognised by industry and government awards BENEFICIAL WASTE REUSE & RENEWABLES AS COST-SAVING MEASURES Beneficial re-use of waste promotes Circular Economy at Mt Carbine, with similar efforts planned for Saloro. Solar PV renewable energy plants to be installed to lower costs and reduce environmental footprint. Saloro's PV project is construction-ready. 30 Visit the EQ Resources stand and enter to Win a Tungsten cube valued at over $450! Follow us on 32 Site Contact: Investor Relations: Kevin MacNeill Chief Executive Officer T: +61 438 542 260 E: kmacneill@eqresources.com.au Peter Taylor NWR Communications T: +61 412 036 231 E: peter@nwrcommunications.com.au Registered Office: Mt Carbine Office: Level 4, 100 Albert Road South Melbourne, VIC 3205 Australia E: info@eqresources.com.au 6888 Mulligan Highway, Mt Carbine Qld 4871 PO Box 1496, Mareeba Qld 4880 www.eqresources.com.au Follow us on