Notes to the Consolidated Financial Statements continued ANNUAL REPORT June 2026 Notes to the Consolidated Financial Statements (q) Provisions Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. (r) Cash and Cash Equivalents Cash and short-term deposits in the Consolidated Statement of Financial Position comprise cash at bank. For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of any outstanding bank overdrafts, if any. (s) Revenue & Other Income Revenue Revenue from contracts with customers is measured at the transaction price, being the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. Revenue is recognised when, or as, the Group satisfies a performance obligation by transferring control of a promised good or service to a customer. Amounts received before the transfer of the related goods or services are recognised as contract liabilities. Revenue is subsequently recognised when, or as, the relevant performance obligation is satisfied. The timing of an advance payment does not, by itself, determine whether revenue is recognised at a point in time or over time. Sale of Tungsten Concentrate and Related Freight and Logistics Services Revenue from the sale of tungsten concentrate is generally recognised at the point in time at which control of the concentrate transfers to the customer. The Group determines that point by considering the relevant contractual terms and indicators of control, including the transfer of title and risk, physical possession, the Group’s present right to payment, customer acceptance provisions and the applicable Incoterms. Where control of the concentrate transfers before contracted freight, insurance or logistics activities have been completed, the Group assesses whether those activities constitute a distinct promised service to the customer. This assessment includes services performed by third-party carriers but arranged by the Group. If the post-transfer service is distinct, the transaction price is allocated between the concentrate and the service based on their relative stand-alone selling prices. This represents an allocation of the existing bundled contract consideration and does not represent additional revenue, require a separate freight charge or require a separate invoice. Revenue allocated to the concentrate is recognised when control of the concentrate transfers. Revenue allocated to a distinct freight or logistics service is recognised over time where the criteria for over-time recognition are met, generally over the transportation period using a measure of progress that faithfully depicts the Group’s performance. EQ Resources Limited Annual Report 2026 57
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