Notes to the Consolidated Financial Statements continued ANNUAL REPORT June 2026 Notes to the Consolidated Financial Statements (g) Revenue recognition - offtake pricing (AASB 15) Management applies judgement in determining the transaction price for certain offtake revenue under AASB 15, having identified a pricing period discrepancy on certain shipments during the year. Having regard to ongoing commercial discussions with the customer, revenue and trade receivables of A$8.9 million have been recognised at 30 June 2026, representing the amount considered highly probable not to be subject to significant reversal. (h) Estimation of variable consideration - provisional pricing Sales of tungsten concentrate are typically provisionally priced at the date of shipment, with the final price subject to adjustment based on final weight, moisture content, assay results and movements in benchmark commodity prices over an agreed quotational period. The Group estimates this variable consideration at each reporting date based on forward pricing curves and the most recent assay information available and includes it in the transaction price only to the extent that it is highly probable a significant reversal will not subsequently occur. Changes in these estimates between the date of initial revenue recognition and final settlement are recognised as an adjustment to revenue in the period the estimate changes. (i) Deferred stripping - Mt Carbine Management applies judgement in determining the reference strip ratio used to identify waste mined in excess of the expected ratio, which is capitalised as a stripping activity asset (IFRIC 20). EQ Resources Limited Annual Report 2026 67
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