EQ Resources - The underdog that revived an abandoned mine and became a global player

A Story of Revival and Growth

Picture an abandoned mine in the rugged landscapes of Queensland—forgotten, its potential buried under layers of waste. Where many saw a lost cause, EQ Resources (ASX: EQR) saw an opportunity. In 2019, the company set out to breathe new life into the Mount Carbine tungsten mine, a bold move that would not only restore an old mining site but also disrupt a market long dominated by China and Russia.

Fast forward to today, and EQ Resources has defied expectations, emerging as a leading force in critical minerals. Through strategic expansions and technological advancements, it is rapidly becoming a key global tungsten supplier. Let’s take a closer look at its journey.

The Early Days: Humble Beginnings, Big Vision

Founded in 2019, EQ Resources started with a resourceful approach—reprocessing old tailings from Mount Carbine to extract valuable tungsten concentrate. This low-cost strategy allowed the company to generate revenue while laying the groundwork for future expansion.

However, scaling up required financial backing and operational efficiency. Partnerships with Cronimet (for offtake agreements) and Sandvik (for equipment financing) provided the support needed to turn this vision into reality..

Key Milestones in EQ Resources' Journey

• 2019: Established operations at Mount Carbine with a focus on reprocessing tailings.
• 2023: Shifted to high-grade ore extraction from the Andy White Open Pit, significantly boosting production.
• 2024: Acquired Spain’s Barruecopardo mine and lands $25 million US-Oaktree Capital investment at A$0.09 per share
• 2024: Expanded into Vietnam with the purchase of Asia’s largest ferrotungsten plant, strengthening vertical integration.
• 2025: Achieved record production levels, supported by improved ore grades and equipment enhancements.

The Present: A Rising Tungsten Giant

With these strategic moves, EQ Resources is now the largest tungsten producer outside China and Russia. Operating across three continents—Australia, Spain, and Vietnam—the company has built a resilient and diversified supply chain, positioning itself as a key supplier to Western markets facing supply chain disruptions.

Despite its impressive growth, EQ Resources has taken a reinvestment approach, choosing to channel profits into expansion rather than issuing dividends. This strategy underscores its commitment to long-term growth and market leadership..

Why Now? A Perfect Market Setup

The demand for tungsten is surging, driven by its essential applications in defense, electronics, and industrial manufacturing. With China tightening its export restrictions and geopolitical tensions prompting the West to secure alternative suppliers, EQ Resources is perfectly placed to capitalize on this shift.

Exacerbating geopolitical tensions, China announced earlier on Tuesday that it's immediately implementing export controls on five key metals used for defense, clean energy and in several other industries in the U.S. After banning exports of gallium, germanium and antimony in December 2024, China is now restricting exports of tungsten, tellurium, bismuth, molybdenum and indium by requiring licenses to export products related to the minerals.

Analysts predict strong revenue growth as the company scales up production. The key challenges ahead include seamlessly integrating its recent acquisitions, managing operational costs, and navigating stringent sustainability regulations in the EU and Australia. However, with its focus on efficiency and innovation, EQ Resources has a clear competitive advantage.

A Future of Possibilities

At its current share price, EQ Resources is an under-the-radar gem. With an aggressive growth strategy, increasing global tungsten demand, and a dominant market position outside China and Russia, it may not stay overlooked for long. As it continues expanding production capacity and strengthening sustainability initiatives, the company is poised to play a critical role in the future of strategic minerals.

For investors seeking exposure to the booming critical minerals sector, EQ Resources seem to be an exciting opportunity with significant upside potential.

The information provided here is for reference only. Please conduct your own due diligence before making any investment decisions.