ANNUAL Report June 2024 Notes to the Consolidated Financial Statements 44 The owner-operator model will result in cost savings, operational control, and mining flexibility whilst upskilling EQR’s local workforce. The Company is also fortunate to have the key management personnel running the mining and engineering departments transition to become EQR employees. Refer ASX announcement “Mt Carbine Transitions to Owner-Operator Mining” dated 16 August 2024. ▪ Strategic collaboration and long-term offtake contract entered into between EQR and Elmet Technologies LLC (“Elmet”). Elmet will purchase tungsten concentrate with an estimated value of A$30 million (at current market prices) over 5 years and will secure the offtake allocation through an advance payment of A$2.0 million. In recognition of the parties’ intent to collaborate, EQR will grant Elmet 20,000,000 options with an exercise price of $0.10 and an expiry date of 2 years. Refer ASX announcement “EQR and Elmet Technologies Agree to a Strategic Collaboration and Long-Term Offtake Contract” dated 2 September 2024. 22. STATEMENT OF CASH FLOWS 23. CONTRACT LIABILITIES 2024 $ 2023 $ Contract Liability - Sublease1 Current 1,466,669 1,768,851 Non-current - - 1,466,669 1,768,851 Contract Liability - Offtake2 Balance at the beginning of the year 4,901,961 3,266,190 Plus: Offtake extension (final drawdown) - 1,482,960 Less: Unrealised foreign exchange (gain) / loss 4,440 152,811 4,906,401 4,901,961 1 Mt Carbine Sublease Rent prepaid to Mt Carbine Quarries Pty Ltd as per the Retreatment Operations Sublease Agreement between Mt Carbine Quarries Pty Ltd, CRONIMET Australia Pty Ltd and Mt Carbine Retreatment Pty Ltd. Reconciliation of net cash outflow from operating activities to operating loss after income tax 2024 $ 2023 $ (a) Operating loss after income tax (2,129,588) (3,716,846) Depreciation and amortisation 7,166,812 1,424,079 Share based payments expense 3,539,925 674,837 Amortised finance expense 1,838,451 1,072,449 Gain on disposal of assets - - Loss on disposal of assets (2,718) 119,352 (Revaluation) Devaluation of investment to market value (26,129,294) 387 Unrealised foreign exchange (gains) losses (219,651) 221,964 R&D tax offset capitalisation 24,462 39,427 Change in assets and liabilities: Decrease (Increase) in receivables (7,067,497) (6,349,632) Decrease (Increase) in other assets (21,030,287) (322,694) Increase/(decrease) in trade and other creditors 31,305,831 5,444,049 Net cash outflow from operating activities (12,703,554) (1,392,628) (b) For the Statement of Cash Flows, cash includes cash on hand at the bank, deposits, and bills used as part of the Company’s cash management function. The Company does not have any unused credit facilities. The balance at 30 June comprised: Cash assets 3,489,532 5,335,596 Cash on hand 3,489,532 5,335,596 Notes to the Consolidated Financial Statements continued 110 EQ Resources Limited Annual Report 2024
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