EQR hits new production record amidst trade tensions

EQ Resources Limited (ASX:EQR) has reported a significant milestone in its tungsten production, achieving a new monthly production record of 20,721 mtu (WO3 in concentrate) for September. The production increase of 51% on the EQR Group level comes at a crucial time as trade tensions between China and the US impact the tungsten market. The company operates globally with mining activities in Australia and Spain.

Executive Commentary on Production Increase and Market Dynamics

Production continues to ramp up at Mt Carbine, and our teams at Barruecopardo have been implementing a capital-lite continuous improvement program since EQR assumed ownership of the mine in January. The recent increase in production reflects our commitment to meeting the growing demand for tungsten, especially amidst the trade tensions between China and the US. The additional restrictions on exporting companies by China and the US imposing a 25% tariff on Chinese tungsten products have created a challenging yet opportune market landscape for us.

Summary of Record Production and Market Outlook

EQ Resources' achievement of a new monthly production record and the overall 51% increase in tungsten output demonstrate the company's commitment to meeting market demand. The trade tensions between China and the US have created an environment where EQR's expanded production is strategically positioned to navigate the impact of regulatory escalations. With the company's positioning as a growing supplier of critical tungsten, it aims to extend its market share and is actively pursuing cooperation and funding opportunities domestically and through US and EU agencies. Despite the challenges, EQR's production run-rate has already reached a level equivalent to 17% of the last five years' average monthly tungsten imports into the US, showcasing its significant contribution to the market.