Notes to the Consolidated Financial Statements continued ANNUAL Report June 2022 Notes to the Consolidated Financial Statements 39 For further details refer to ASX announcement “EQR Farms-Out NSW Projects to Focus on Mt Carbine Tungsten Mine” dated 26 November 2021. This agreement ensures that the Company’s minimum expenditure requirements, as shown in the table below, will be satisfied in order to maintain each tenement in good standing. 2022 $ 2021 $ Payable not later than 1 year (NSW only) 118,000 38,000 Payable later than one year but not later than two years 278,000 76,000 396,000 114,000 It is likely also, that the granting of new licences and changes in licence areas at renewal or expiry will change the expenditure commitment of the Group from time to time. 18. INVESTMENT IN SUBSIDIARIES Equity Interest Cost of Parent Entity’s Investment Parent Entity EQ Resources Limited 2022 % 2021 % 2022 $ 2021 $ 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 Ltd1 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. 19. 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 2022 financial year the Directors took the following into consideration: ▪ The results from Bankable Feasibility Study for the Mt Carbine Expansion Project which delivered strong Pre-Tax Economics* including: o Pre-Tax NPV8 of $131.5M; o IRR of 154%; o Payback period of 2.25 years; o Life of Mine EBITDA of $206.9M; and o Project life of 12 years. * Concentrate sales price basis US$315/mtu (mtu = metric tonne unit, 10kg). 70 EQ Resources Limited Annual Report 2022
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