EQ Resources Accelerates Tungsten Growth with Mt Carbine Expansion and Hodgkinson Acquisition

EQ Resources expands Mt Carbine tungsten mine capacity to 2M tonnes/year, acquires 365 sq km exploration licences in Queensland to boost output amid rising global prices.

EQ Resources is firing on two fronts in northern Queensland. The tungsten producer has both secured a strategic land acquisition and pushed ahead with plans to double capacity at its flagship Mt Carbine mine, signalling a concerted push to capitalise on rising global prices for the critical mineral.

The company paid 250,000 AUD to Sunshine Metals for six exploration licences covering roughly 365 square kilometres adjacent to Mt Carbine. The deal fits into a hub-and-spoke model where existing processing infrastructure will eventually handle material drawn from surrounding deposits. Sunshine Metals is using the cash to refocus on its gold assets at Mt Moss and Liontown.

News of the acquisition helped steady the stock, which had earlier hit a 52-week low of 0.20 AUD. The shares closed at 0.23 AUD, nearly 8% higher on the day, though they still trade almost 40% below the year’s peak of 0.38 AUD. The Relative Strength Index currently sits at 47, indicating neutral momentum.

The bigger story, however, is the doubling of throughput at Mt Carbine. The board gave the green light in early June to expand annual ore processing from one million tonnes to roughly two million tonnes. That will involve automated material handling and the ability to extract an additional 500 tonnes of tungsten per year from low-grade stockpiles, with more volumes expected from other sources later.

Tungsten prices have been climbing for months, driven by tight supply and robust demand from the aerospace and defence sectors. China dominates global production, making alternative sources strategically valuable. EQ Resources sits on a prized resource in that context, and the company is funding the expansion from operating cash flow — helped by strong commodity prices.

In the third quarter of fiscal 2026, the miner posted revenue of 32.5 million AUD and ended the period with about 22 million AUD in cash. The balance sheet is also getting healthier: management has retired Spanish debt and converted a portion of its Oaktree obligations into equity, easing near-term liquidity pressures.

The operational target is ambitious: EQ Resources aims to lift monthly output to between 10,000 and 12,000 MTU, which annualises to roughly 1,750 tonnes of tungsten by the end of 2026. The company’s share price, currently at 0.23 AUD, remains about 18% above the recent trough, leaving room for a sustained recovery if production milestones are met.

For now, attention is shifting to how quickly the new Hodgkinson ground can be integrated into the existing workflow. Investors will be watching the next few quarters for signs that the hub-and-spoke model is starting to deliver the promised synergies.