Notes to the Consolidated Financial Statements continued ANNUAL Report June 2025 Notes to the Consolidated Financial Statements 34 20. INVESTMENT IN SUBSIDIARIES Equity Interest Cost of Parent Entity’s Investment Parent Entity EQ Resources Limited 2025 % 2024 % 2025 $ 2024 $ Controlled Entities Mt Carbine Mining Pty Ltd 100 100 2 2 Mt Carbine Retreatment Pty Ltd 100 100 200 200 European Tungsten 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 100 100 50 50 Saloro S.L.U. 100 100 2 2 EQ Resources Limited and its subsidiaries are located and incorporated in Australia except for Saloro, wholly owned by European Tungsten Pty Ltd, which is domiciled in Spain. 21. 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 2025 financial year, the Directors considered the following: ▪ The continuation of open-cut mining operations with the May 2023 Bankable Feasibility Study Update delivering the following strong Pre-Tax Economics* for the Mt Carbine Expansion Program: – NPV8 of $307.1 million (47% increase compared to the November 2022 BFS update of $209 million); – IRR of 477%; and – Life of Mine EBITDA of $450 million. 1 Concentrate sales price basis US$340/mtu (mtu = metric tonne unit, 10kg) in 2023, with a long-term forecast average of US $369/mtu (2024 – 2040) calculated using the average of the Roskill Base Case and High Case price level scenarios (see Chapter 16 of 2021 BFS). ▪ The global tungsten pricing environment strengthening markedly during the 2025 financial year with APT prices rising from approximately US$3330/mtu (~A$500/mtu) at the start of the period to US$463/mtu (~$700/mtu) by June 2025. ▪ The RC Drilling campaign initiated at Mt Carbine in December 2024 confirming the top of the lolanthe system and the presence of high-grade ore across multiple veins (Dazzler, Johnson and lolanthe). ▪ Securing of 5 long-term offtake agreements covering the next 24-month production from both operations in Australia and Spain for an estimated total of US $124m, representing volumes of 470 containers with each container holding 20 metric tonnes of 50% WO3 concentrate. Refer ASX Announcement “EQR Signs 5 Long-term Offtake Agreements for next 24 months” dated 19 March 2025. ▪ The Company’s wholly owned subsidiary, Mt Carbine Quarrying Operations Pty Ltd, continuing to dedicate resources to developing its ‘green aggregates’ business to enable the repurposed Mt Carbine aggregates to be classified as a recycled product. This will open additional opportunities in both local and regional markets, potentially increasing future sales as regional industries demand more recycled products. The Company continues to submit tenders for substantial civil projects in the Quarry’s operational area, all of which are dependent upon either Federal or State funding. 100 EQ Resources Limited Annual Report 2025
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