Shares in tungsten producer EQ Resources Ltd (ASX: EQR) are trading at record levels, up nearly fourfold over a 12-month period, after the company announced a significant increase in production quarter on quarter.
The company said in a brief statement to the ASX on Tuesday that it had produced 38,292 metric tonne units (MTU) of tungsten during the December quarter, which was up 33% on the previous quarter.
The company added that this came at a time when the tungsten price was particularly strong, at US$825 per MTU on December 26, which was up 42% quarter on quarter.
The price increased further to US$900 per MTU by January 2, the company added. One MTU is equal to 10kg of tungsten trioxide.
Shares test record highs
EQ Resources shares traded as high as 9.9 cents – a 12-month high – on the news before settling back to be 11.7% higher at 9.6 cents.
The company's shares have traded as low as 2.5 cents over the past year, with that level recorded in late January last year.
EQ Resources said in its briefing to shareholders at the company's annual general meeting in November that it had "one of the largest tungsten resource bases outside of China", across its Mt Carbine mine in Australia and its Barruecopardo mine in Spain.
The company said it was aiming for a "material increase" in production over calendar year 2026, "as Barruecopardo performance strengthens and Mr Carbine accesses the high-grade Iolanthe vein''.
The company said tungsten was now being recognised as a critical mineral, with China controlling 85% of production, and few near-term Western projects on the drawing board "despite rising demand from defence, aerospace and clean energy sectors''.
The company said further:
With recovery improvements at Barruecopardo and a waste cut back under way at Mt Carbine, EQ Resources is well-placed to significantly increase production subject to execution of planned activities.
EQ Resources has a minimum nine-year mine plan at Barruecopardo, with expansion potential, while the current mine plan for Mt Carbine has an eight-year life.
The company also informed the ASX in a statement in December that it had raised $34 million through a share placement at 5 cents per share, with the funds to be used to advance the Mt Carbine mine, pay down debt and receivables, and bolster working capital.
At the same time, Oaktree agreed to convert a $7.25 million loan to equity.
EQ Resources was valued at $396.7 million at the close of trade on Monday.
