Risk Management and Sustainability Sustainability EQ Resources is committed to responsible resource development, aligning its values with sustainable operations to drive economic growth while protecting the environment. EQR’s ESG approach aligns with global sustainability standards, including ICMM, GRI, UN SDGs, and Australian Climate Related Financial Disclosures. The program focuses on key areas important to the business and stakeholders, with a commitment to ongoing development of both environmental and social initiatives. EQR Values Material Business Risks The Board is committed to the proactive identification, assessment, and management of risk across all areas of EQ Resources’ business activities. The Company recognises risk management as a cornerstone of good corporate governance and fundamental to achieving both strategic and operational objectives. Effective risk oversight not only mitigates material exposures but also enhances decision-making, identifies opportunities, and underpins the preservation and creation of security holder value. Management reports identified risks through regular operational reporting and, where necessary, through direct and timely communication to the Board. The Company does not currently maintain a dedicated internal audit function; however, oversight is supported through the Audit and Risk Committee, which has ongoing responsibility for monitoring risk management practices and financial compliance. The Managing Director and CFO jointly attested that the Financial Statements are underpinned by a robust system of internal control, and that the Company’s risk management, particularly as it relates to financial risk, has operated effectively throughout the year. While the Company faces risks inherent to the resources sector – including economic, financial, and operational risks that may influence short-, medium-, or long-term outcomes – the Board does not consider EQ Resources to be materially exposed to environmental or social sustainability risks at this stage. Policies and procedures continue to be refined and updated to address emerging challenges and evolving regulatory expectations. Through its governance framework and oversight processes, EQ Resources maintains a disciplined and structured approach to risk, ensuring resilience in operations while remaining focused on delivering sustainable growth and long-term value to its stakeholders. Macroeconomic and Market Risks As a participant in the global tungsten industry, EQ Resources is exposed to macroeconomic and market-related risks that can materially influence its performance. Tungsten pricing is subject to cyclical demand patterns across key end-use sectors such as construction, mining, aerospace, defence, and automotive manufacturing. These industries are sensitive to broader economic conditions, interest rate cycles, and geopolitical developments, which can drive volatility in demand for tungsten products. Act Safe. Feel Safe. Embrace Difference Tread Lightly Dig Deep Buddy Up Lead with Integrity Act safe at work. Care and respect each other. Feel safe to be yourself. Diversity of thinking, skills and background creates value and drives innovation. Embed resource efficiency to minimise environmental footprint & deliver positive societal impact. Go one better. Strive to continuously learn and improve. Challenge the status quo. Collaboration is key to realising shared value. Have courage to do the right thing. Be accountable. WHAT WE CARE ABOUT “Step Up, Stand Out: Own Our Impact” 20 EQ Resources Limited Annual Report 2026
RkJQdWJsaXNoZXIy MjE2NDg3