of spare parts and additional equipment continued to be experienced as it was in the previous period and led to some delays in expansion activities. The operational team at site has created strong inventory management systems and slightly higher inventory holdings to combat supply delays. New equipment was also sourced from local providers wherever possible, providing local business opportunities whilst reducing freight costs and minimizing project delays. These challenges have helped strengthen and broaden a network of connections with suppliers and vendors across the industry. The operation now has over 65 employees with many of the employees from the local surrounding communities. Mt Carbine operations are proud to have so many local employees that have been trained through the operations and feeding back into the community. All operations at Mt Carbine operate on a 24/hr roster. In accordance with the Offtake Agreement between the unincorporated JV, between the Company and CRONIMET Australia Pty Ltd, and CRONIMET Asia Pte Ltd, by the end of the financial year CRONIMET Asia has taken delivery of over 300 tonnes of concentrate. Individual production lots are tested against agreed quality parameters, upon which CRONIMET determines the acceptance of concentrate. Trial deliveries to large tungsten consumers in Asia, the US and Europe were successfully completed and were of utmost importance, given the specific composition of the Mt Carbine concentrate (containing mixed mineralisation of Scheelite and Wolframite). Risks & Opportunities The effective management of risks and opportunities is essential to the successful development and execution of the Mt Carbine Project and its expansion activities. Section 14 of the Bankable Feasibility Study defines the framework which: − Describes the process for identifying risks and opportunities that could impact the Project; − Describes the process for assessing risks using consistent risk management guidelines; − Identify and assess the material risks associated with Project execution and define appropriate measures to control these risks; − Establish a process to ensure that risks and opportunities continue to be identified and compliance obligations satisfied throughout the life of the Project; and − Ensure that the process is communicated to relevant stakeholders. Operational Risks An operational event can cause disruptions to our operations, damage assets, affect our reputation with the community and other stakeholders, or cause long term damage to our license to operate. It can also impact our financial performance, reduce business prospects and can limit future opportunity development. The Mt Carbine site is a mature operating site that has been running since the Gravity Processing Plant started hot commissioning in February 2020. EQR’s CEO, Mr Kevin MacNeill, is involved through strategically guiding the operation and Company from an explorer to a fully-fledged operation. Mr MacNeill has over 30 years’ of experience in managing mining operations through North America, Europe, and Africa. This experience has aided the development of a cohesive, hands‑on management approach and operations team development and while restricting the reporting chain to ensure employees are empowered in their roles for efficient decision making and optimal outcomes. EQR is an equal opportunity employer with a zero tolerance for bullying and harassment in the workplace as it works to build a team of skilled individuals from surrounding communities. The operation has an Intergrated Health and Safety Management System that protects employee’s physical safety and mitigates operational risks which are guided by the Integrated Management System (IMS) which addresses the intended outcomes of ISO 9001:2015 Quality Management Systems, ISO 14001:2015 Environmental Management Systems and IOS 45001:2018 Occupational Health and Safety Management Systems. External factors The Company is committed to developing the capabilities necessary to identify threats as well as opportunities that risk factors present, and act upon them to guarantee a continuous improvement of its business resilience strategy. There is an ever-growing necessity for companies to assess the changes in their macro environment and their associated risks. While risks have always existed, the Company has faced new threats that emerged globally in the last year. These stem from geopolitical developments like ongoing military conflicts or the threat of pandemics and resulting in increased economic volatility, global disruptions in logistics, manufacturing congestion, trade tensions and uncertain economic growth. These resulting global political tensions can trigger changes to laws, regulations or to trade agreements, tariffs and exports quota. EQ Resources Limited Annual Report 2022 19
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