EQ Resources tungsten output falls in 2Q25 as grades drop

EQ Resources

EQ Resources tungsten output declined in the second quarter on lower feed grades. EQ Resources tungsten output from Mount Carbine fell sharply, while Saloro ran at full capacity. As a result, EQ Resources tungsten output mixed weak Australian volumes with stronger Spanish performance.

Mount Carbine grades weigh on production and throughput

EQR produced 6,983 mtu at Mount Carbine, down 61pc year over year. The mine processed 54,573t of ore, 27pc lower than last year. Feed grade averaged 0.17pc tungsten versus 0.44pc a year earlier. Management continues its expansion to access higher-grade ore bodies. However, the site will still process lower-grade ore during the build-out.

Saloro offsets declines; financing and downstream push

EQR produced 28,203 mtu at Spain’s Saloro mine, up 21pc year over year. The operation ran at nameplate after a 2024 ramp-up. Companywide output reached 35,187 mtu, down 15pc on the year. EQR secured $7.5mn royalty financing from Oaktree to extend Saloro north. The firm also pursues downstream value via Tungsten Metals Group. The planned purchase includes a 4,000 t/yr ferro-tungsten plant in Vietnam. Closing has been delayed since the November 2024 agreement.

The Metalnomist Commentary

Tungsten supply remains tight outside China, so grade recovery at Mount Carbine matters. Stable Saloro output and Oaktree funding help bridge the gap. Downstream alloy capacity, if closed, could hedge price cycles and lift realized margins.