Mineral Resources and Ore Reserves Mineral Resources and Ore Reserves are estimates of mineralisation that have reasonable prospects for eventual economic extraction in the future, as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”). JORC Code compliant statements relating to EQR’s Ore Reserves and Mineral Resources are estimates only. An estimate is an expression of judgement based on knowledge, experience and industry practice. Estimates which were valid when originally calculated may alter significantly when new information or techniques become available. In addition, by their very nature, Resource estimates are imprecise and depend to some extent on interpretations, which may prove to be inaccurate. As further information becomes available through additional fieldwork and analysis, the estimates are likely to change and may be updated from time to time. This may result in alterations to mining plans or changes to the quality or quantity of EQR’s Ore Reserves and Mineral Resources, which may, in turn, adversely affect EQR’s operations. Mineral production involves risks, which even a combination of experience, knowledge and careful evaluation may not be able to adequately mitigate. No assurance can be given that the anticipated tonnages or grade of minerals will be achieved during production or that the indicated level of recovery rates will be realised. Additionally, material price fluctuations, as well as increased production and operating costs or reduced recovery rates, may render any potential mineral Resources or Reserves containing relatively lower grades uneconomic or less economic than anticipated, and may ultimately result in a restatement of such Resource or Reserve. This in turn could impact the life of mine plan and therefore the value attributable to mineral inventory and/or the assessment of recoverable amount of EQR’s assets and/or depreciation expense. Moreover, short term operating factors relating to such potential mineral Resources or Reserves, such as the need for sequential development of mineral bodies and the processing of new or different mineral types or grades, may cause a mining operation to be unprofitable in any particular period. In any of these events, a loss of revenue or profit may be caused due to the lower-than-expected production or ongoing unplanned capital expenditure in order to meet production targets, or the higherthan-expected operating costs. EQR seeks to manage and minimise this risk through its existing risk management framework including an external audit process for its Mineral Resources and Ore Reserves. Operating and Financial Review continued Operational Risks EQR’s operations at Mt Carbine (Australia) and Saloro’s Barruecopardo Mine (Spain) are exposed to the full spectrum of risks inherent in mining and processing activities. These include potential interruptions from equipment breakdowns, difficulties in sourcing replacement parts, challenges in product separation and screening, and adverse weather impacts. Since the commencement of open-pit mining at Mt Carbine in June 2023, the site has evolved from a junior exploration project into a fully integrated mining operation. The leadership transition has instilled a strong, hands-on management culture focused on empowering teams, streamlining decision-making, and driving efficiency. In Spain, Barruecopardo benefits from established European infrastructure—roads, ports, and utilities— that support efficient logistics and reduce supply chain risks. Nevertheless, both sites remain subject to uncertainties such as labour availability, industrial disputes, rising input costs (labour, consumables, spare parts, and energy), and potential IT or regulatory disruptions. Broader global events—such as pandemics, geopolitical instability, or significant policy changes—may also materially affect operations and supply chains. EQR mitigates these risks through proactive maintenance programs, investment in workforce training, and embedding resilience within its operational planning. Environmental Risks The Company’s projects operate under stringent environmental obligations, with compliance central to maintaining licences to operate. Regulatory frameworks in both Australia and Spain require detailed reporting and performance against environmental criteria, creating the risk of financial or operational penalties if standards are not met or if requirements increase in scope. To manage these exposures, EQR has developed detailed environmental management plans under its risk framework and invests in continuous monitoring and reporting. At Barruecopardo, Saloro holds ISO 14001:2015 certification, which provides a structured approach to environmental management and continuous improvement. This framework guides resource efficiency, waste reduction, performance tracking, and stakeholder engagement. At Mt Carbine, environmental controls continue to be embedded into the site’s integrated systems, with a focus on reducing tailings, optimising water use, and monitoring biodiversity impacts. These measures provide resilience against regulatory change while reinforcing the Company’s commitment to sustainable operations. 16 EQ Resources Limited Annual Report 2025
RkJQdWJsaXNoZXIy MjE2NDg3