EQ Resources (ASX: EQR) has reported a significant 33% quarter-on-quarter increase in tungsten production to 38,292 mtu, coinciding with record high APT prices exceeding $900/mtu, marking a strong near-term revenue outlook. This production surge complements the company's strategic financing and operational developments detailed in its recent annual report.
Production Soars Amidst Record Tungsten Prices
EQ Resources delivered a strong operational performance for the quarter ending 31 December 2025, reporting a 33% quarter-on-quarter increase in tungsten production. Total output reached 38,292 mtu.
This production boost occurred during a period of rising tungsten prices. The APT CIF Rotterdam/Baltimore price was $825 per mtu on 26 December 2025, representing a 42% increase quarter-on-quarter. Prices continued their upward trajectory, reaching $900 per mtu by 2 January 2026.
These record price levels are set to bolster near-term revenue and profit margins for the company, which primarily focuses on its Mt Carbine project in Australia and Barruecopardo in Spain.
Annual Report Highlights Strategic Foundation
The company's 2025 Annual Report, released earlier, laid out a robust strategic foundation. It highlighted significant funding success in FY2025, with total equity raised amounting to approximately A$28.47 million.
A notable turnaround was achieved at Saloro, which delivered a record unaudited EBITDA of approximately A$7.8 million and became cash positive within nine months of acquisition. This was supported by upgrades at Barruecopardo, including XRT ore sorting and fines recovery.
EQ Resources has also strategically expanded its Mt Carbine and Saloro platforms, including the acquisition of 100% of the Mt Carbine Retreatment JV, exploring downstream exposure through Elmet Technologies, and the potential acquisition of Tungsten Metals Group (TMG).
Recent Financing De-risks Operations
In December 2025, EQ Resources moved to further de-risk its operations through key financing agreements. The company signed a binding term sheet with Traxys for a €15 million three-year prepayment facility.
This facility is designated to refinance existing Saloro debt and is paired with a five-year offtake agreement for a minimum of 3,500 tonnes WO3 (which equates to 7,000 tonnes of concentrate). This long-term offtake offers significant revenue visibility, with a notional value estimated at approximately A$400 million.
Furthermore, a successful $34 million equity placement at 5.0c per share was undertaken in December 2025. This capital raise, alongside a potential conversion of an A$7.25 million Oaktree pre-royalty loan into equity (subject to shareholder approval), is designed to repay debt and trade payables, and accelerate development towards the high-grade Iolanthe Vein at Mt Carbine in Q1 2026.
Market Context Remains Strong
The broader tungsten market continues to exhibit strength, providing a favourable backdrop for EQ Resources. APT prices have been on an upward trend, rising approximately 37% in FY2025 to roughly US$463/mtu, and they are expected to rise significantly higher into 2026.
This market tightening is driven by demand growth from new energy and high-tech applications, including photovoltaic wafer cutting and lithium-ion batteries. Analysts forecast global tungsten demand to exceed 130,000 tonnes of concentrate in 2025, a 6% year-on-year increase.
Geopolitical factors, such as China's export controls on tungsten, have also contributed to a shift towards multi-year offtake contracts with secure, non-Chinese suppliers. This trend enhances revenue visibility for companies like EQ Resources and supports a robust critical minerals supply chain outside of China.
Outlook Tied to Price and Execution
EQ Resources is well-positioned to capitalise on strong tungsten prices and demand, evidenced by its recent production surge and robust annual report detailing strategic financing and operational turnarounds. The company's near-term outlook is positive, though longer-term success hinges on sustained price levels and disciplined execution across its expanding asset base and potential downstream ventures.
