Operating and Financial Review continued These disruptions whether international or national, have the ability to affect sales volume, sales price, production costs and impact the planning and development of the Company’s projects. From threats, opportunities also arise and governments have expressed a growing interest in developing critical mineral strategies. As part of the Company’s risk mitigation it: − Monitors the macroeconomic and geopolitical developments to prepare scenarios and response plans for variations in the economic environment; − Assesses its capabilities to maintain sales plans, develop strategic partnerships and mutually beneficial relationships with its stakeholders; − Maintains control of the supply chain to limit costs volatility; and − Organises systems to navigate through global instability and minimise volatility. The increase in the severity of extreme weather events we have witnessed nationally and internationally cannot be ignored and can have longer term repercussions than what the Company could have expected in the past. There is an increase in unpredictability in the local weather that can disrupt operations, slow project completion, delay future developments, lead to a potential change in geotechnical conditions or could potentially cause unforeseeable incidents. To decrease the Company’s vulnerability to such events it monitors potential and unpredictable conditions and plans on-site activites according to these predictions and prepares responses for different scenarios. Quarry Activities The Mt Carbine Quarry is the largest and one of the most northern hard rock quarries in Queensland. It is a fully permitted, established business which has been in operation for over 20 years within the Mt Carbine Mining Leases. The Company’s cost competitiveness is primarily due to all of its feed stock being sourced from readily available stockpiled mined rock, meaning no drill and blast activities are necessary. The synergies between the Quarry and the Company’s mining activities through beneficial waste reuse, reinforces the Company’s commitment to reducing its environmental footprint and maximising value from all resources on site. 20 EQ Resources Limited Annual Report 2022
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