Mt Carbine Operations EQR & Golding Execute Mining Contract for Mt Carbine The execution of the mining contract between EQ Resources Limited and Golding Contractors Pty Ltd (“Golding”) on 29 May 2023 marks one of the Company’s most significant achievements this year, with promising prospects for both companies. This partnership is mutually beneficial and includes a strategic approach to enhance our ties. Initially, the contract outlines a 12-18 month period based on rates and a cost-plus model to establish a site-specific baseline cost. Following this phase, the contract will transition to rise-and-run matrix rates, considering factors such as fleet composition and material type. This forward-looking strategy ensures this collaboration evolves to be efficient and costeffective as we gain a deeper understanding of our mutual operations. The committed contract period of 70 months, with an estimated value of $179 million, underscores the long-term commitment and shared vision between EQR and Golding. Throughout this period, substantial material movement is anticipated, including the excavation of approximately 16.3 million tonnes of mine waste material, 6.0 million tonnes of mined ore, and 2.9 million tonnes of low-grade stockpile material. By dividing the contract into two phases, both parties demonstrate a proactive approach to managing risk in the unique context of mining hard rock tungsten. This strategy not only helps de-risk the project but also ensures the successful delivery of the project scope without the need for significant risk pricing adjustments. It also solidifies our relationship, laying the foundation for a strengthened and prosperous partnership between EQR and Golding (refer ASX Announcement ‘EQR & Golding Execute Mining Contract for Mt Carbine’ dated 29 May 2023). Golding’s Mining Project Manager, Steven Page, and Mining Superintendent, Craig Williams, with some of their newly mobilised fleet. The Mt Carbine and Golding team have optimised the site layout to facilitate increased production and workflow activity. A streamlined delivery schedule for additional equipment facilitates the acceleration of production ramp-up. Operating and Financial Review continued 6 EQ Resources Limited Annual Report 2023
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