EQ Resources Limited Annual Report 2021

54 EQ Resources Limited Annual Report 2021 Notes to the Consolidated Financial Statements continued ANNUAL Report June 2021 Notes to the Consolidated Financial Statements 40 17. INVESTMENT IN SUBSIDIARIES Equity Interest Cost of Parent Entity’s Investment Parent Entity EQ Resources Limited 2021 % 2020 % 2021 $ 2020 $ Controlled Entities South Eastern Resources Pty Ltd 100 100 2 2 Mt Carbine Retreatment Pty Ltd 100 100 200 200 Troutstone Resources Pty Ltd 100 100 1 1 Mt Carbine Quarrying Operations Pty Ltd 100 100 100 100 Mt Carbine Quarries Pty Limited 100 100 8,130,000 8,130,000 Icon Resources Africa Pty Ltd 100 100 10 10 Mt Carbine Retreatment Management Pty Ltd 1 50 50 50 50 1 Mt Carbine Retreatment Management Pty Ltd acts as the agent for the unincorporated joint venture between Mt Carbine Retreatment Pty Ltd and CRONIMET Australia Pty Ltd. EQ Resources Limited and all of its subsidiaries are located and incorporated in Australia. 18. IMPAIRMENT OF DEFERRED EXPLORATION EXPENDITURE AND PLANT AND EQUIPMENT The Directors reassess the carrying value of the Group’s assets including deferred exploration expenditure, tenements and plant and equipment at each half year, or at a period other than that, should there be any indication of impairment to fair value. When making their assessment for the 2021 financial year the Directors took the following into consideration:  During the financial year the Company through its Joint Venture with CRONIMET Australia Pty Ltd continued to ship tungsten concentrate from the Mt Carbine Retreatment Plant.  APT (Ammonium Paratungstate; as the underlying price reference for tungsten concentrate) price appreciation from a low of approximately US$205/mtu (metric tonne unit equals 10kg) in July- August 2020 to approximately US$300/mtu as at the end of July 2021.  The Company’s wholly owned subsidiary, Mt Carbine Quarrying Operations Pty Ltd, fulfilled ~90% of its $4 million (including GST) contract with Bama Civil for the supply of various quarry materials with the balance of the contract being fulfilled during the first quarter of the 2021 – 2022 financial year. Efforts to support the continued growth and development of the quarry are continuing with a number of tenders being submitted for substantial civil projects in the Quarry’s operational area during the first quarter of 2021-2022 financial year.  The Company has maintained its two (2) gold prospects in NSW. A further tungsten focused Exploration Permit was granted in June 2020 (EPM 27394) to complement its existing two (2) tungsten focused Exploration Permits (EPM 14871 & EPM 14872) located at Mt Carbine, North Queensland. EPM 14872 contains both the Iron Duke and Petersen’s Lode prospects whilst EPM 14871 features the Mt Holmes tin-tungsten prospect.  The Company believes that EPM 14872 holds significant exploration upside given that the tungsten grades indicated in the sampling of the Iron Duke and Petersen’s Lode are extensively higher than the estimated global average grade in the present open-pit resource within the Mt Carbine Mining Leases. These unencumbered, greenfield sites also offer the added advantage of having minimal environmental legacy issues. Based on the above, Directors’ have assessed there to be no indication of impairment in the current financial year. In the prior financial year however, Deferred Exploration and Evaluation expenditure of $140,855 was impaired in full due to the adverse geo-political climate in Chile during the 2020 financial year resulting in the Company deciding not to pursue any further exploration activities within this sector.