Welcome to the March quarter, EQ Resources quarterly webinar, where we're going to cover market conditions, operations in Spain and Australia, financials and outlook. We have the Managing Director, Mr. Craig Bradshaw, and Chief Financial Officer, Jono Kort, with us. We'll start by talking a little bit about the tungsten market globally. Craig, pricing has moved material recently. Where are we now?
You know, the first quarter 2026 has been an interesting one. The, I think we finished the quarter, December quarter at an average price in December of around AUD 798 MTU.
Mm-hmm.
We're sitting at the end of March on a, on a APT low of AUD 2,800 per MTU. You know, significant upward price pressure through the quarter, you know, reflecting just a lack of material availability in the market, in the Western world. Yeah, prices are good. We're sitting well, yeah, outlook looks good on that basis.
About the Barruecopardo operations and get stuck into that. Spain has seen some weather over the quarter. What can you tell us about that and how it impacted production?
Funnily enough, normally when you have an asset in the northern hemisphere and an asset in the southern hemisphere, you have geographical dislocation of rain events, right? With our operations, the wet season occurs at both operations at the same time, we'll need to get better at how we manage that going forward. We have plans in terms of what we can do. Our ore doesn't degrade, what we will do in future is to build stockpiles ahead of the processing plant so that we don't have, or aren't impacted as much by weather events. Spain recorded in January and February the highest rainfall events that they've had since 1976. That made it very difficult to operate in the plant, difficult to mine.
Production as a result was negatively impacted by about 50% compared to where we were operating at the December quarter. Come the end of March, we had around 1.9 m of water in the base of the pit. Understanding that the base of the pit is our highest grade material, so we've got 1 million tonnes at 0.2% or better sitting in the base of the pit. Where we can mine is in the northern area where we're still pulling that part of the pit down. That material varies between 0.1% and 0.14%, so we are still running. We're putting material through that process plant, but it's a lower grade. We've got the water in the pit down to around 1.5 m. We're treating the water.
It's a zero discharge site, so we can't just discharge the water. We have a variety of evaporation systems in place to enable evaporation of the water. We are getting approval from the Spanish government to do a discharge up to 12,000 cu m . We've got 16,000 cu m in the base of the pit at the moment. In terms of that, we're in the process of getting a number of RO plants so that we can treat that water and then discharge in accordance with Spanish requirements. You know, look, it's moving. It's slower than what I would have liked in terms of solutions.
I think, you know, one of the challenges is working with regulators who don't particularly understand, you know, the mining business and the challenges within the mining business and aren't as responsive as we would otherwise like in our world. They are working with us, just slower than we'd like to get to an outcome. At the end of the day, the ore is there. We just need to move the water and then we get back into the base of the pit and then Barruecopardo will be back at the production rates it had across the December quarter.
It's a tremendous strategic asset at Barruecopardo and there's drilling planned, phase 6 and 7 advancement underway. It's quite a resource there you've still got to uncover.
Yeah, we announced to the market in various presentations I've made through the March quarter a drilling program that we will be undertaking in Spain. It's worth noting that the ore body in Spain, when you're standing in the base of the pit, you know, you can look to the north and you see the veins continuing the northern wall. To the south, you can see the veins continuing in the south. The ore body is obviously open to the north, open to the south, open to depth and open to the east. Within that, we've got the eight EPMs around the mining license for Barruecopardo. The reason that it's not in the geological model is the fact that there's just been no drilling.
We'll undertake 37 holes for about 12,200 m of drilling as part of a phase 1. The reason I call that phase 1 is depending on what we see in the initial phase 1 drilling, while we've got rigs on site, we'll then follow that up with phase 2 or phase 3 drilling in the north and the south. In the east, it is resource that we're converting into reserve by closing, you know, undertaking infill drilling. You know, for only 45% of the resource has been converted to reserve at Barruecopardo. The plan with the drilling program is to both extend the resources as well as infill to convert resource to reserve for the areas we're gonna be mining, as well as undertaking grade control drilling through the operation.
At the moment, that work is out to tender and once we finalize the tender, we'll get that work underway. I expect to be drilling there probably in about two months' time by the time we complete the tender and the contracted parties mobilize to site and start undertaking the drill program. Exciting times.
Important progress at Barruecopardo, but let's shift domestically to Mount Carbine. What drove activity at Mount Carbine over the quarter and can you give us a summary of activities there, Craig?
Yeah, look, the Barruecopardo was, you know, positive and negative at the same time. On the one hand, we needed water to fill up the reservoirs that we'd built in the previous year. We certainly got the rainfall that we needed to do that. We're also then impacted by a number of cyclone events. We're impacted by the new Queensland Mines Inspectorate regulations around proximity to lightning. Previously, we would have to shut down operations if lightning was within 17 km. Under the new regs, it's now 30 km. To alleviate that, we have to take certain steps at site to reduce that back to the 17 km.
We will be doing that during the dry season coming up, but we had a fair amount of downtime as a result of that, relative to what we would have liked to operate with. All that said, we still had a record material movement in the quarter. We moved 821,000 tonnes of material for the quarter, which is still a record for us. Our access to the higher grade in the pit was still negatively impacted by the rainfall. Where we've moved some of that material will help us in mining in Q3 and Q4 calendar year 2026 or Q1, Q2 financial year 2027.
It's moving waste ahead of the plan, but it didn't help us get access to that higher grade ore in the March quarter. We had some of it come through. It processed well through the process plant, but it hasn't been until the, you know, the third and fourth week of April that we've actually got solid access to the high grade, and that material is now coming through the plant. We're seeing the step up in production rate through the back end of April that ideally we would have liked to have been seeing from the start of March. It's about six weeks behind where we would have liked it, but at the end of the day, it's now coming through, and it's coming through into higher prices.
Just timing-wise, financially, it works really well. When you look at the, yeah, like I said earlier, the, the price in December, which is M-1 price, was AUD 798. The, the low in March was AUD 2,350. The low in April is AUD 2,800. Although our production is about six weeks behind where we would have liked it's coming into a price that's significantly higher than what it was a month ago. Bittersweet, but we are accessing that material now.
That's a mile length we're discussing. Can you make up some of that lost production going forward?
Yeah, look, it's not lost. It's just a timing issue, right? It's a case of, you know, where, whereas I would have liked that material coming through in March, we're seeing it now in April. April's production is likely to be at Carbine higher than what we achieved for the entire quarter in the March quarter. You know, good signs, material finally coming through, and that will then continue to step up as we have, you know, longer runs and more regular access to the high grade coming through the plant. You know, we're well-positioned. It's just a timing issue.
Works in favor, Craig, given that you're supplying into a higher price environment. It's a good timing after all.
There's the higher price environment and, equally, you know, we've got a backlog of customer orders. At the moment, you know, it's going to take us the better part of eight, nine months to work through all the backlog that we've got in terms of customer orders. There's no shortage of demand opportunity. From a pricing perspective, it's either M-1 or M, we get that benefit as we go through. You know, it does look good, albeit six weeks behind where I would like to have been.
On the exploration pipeline, Craig, can you give us an update on further exploration of Mount Carbine and Wolfram Camp?
We announced the other day that we'd already started drilling at Mount Carbine. We've got two RC rigs, a diamond rig. We're getting an extra diamond rig to site because I'm trying to compress the timeframe that it takes to get the drilling done. That leads into faster results from the lab. Drilling's commenced. We're targeting a combination of things at Carbine itself. There were a number of inferred resources at Carbine that was at surface around the existing pit. We had actually done some initial recon work using the blast rigs in 2025 when they weren't available for drilling in the pit at the time.
We're now following that up with obviously the deeper drilling opportunity with the RCs and diamond. Expectation is that we will convert that resource into, you know, proven and probable. Equally, we'll undertake a number of infill holes in the pit itself. You know, we can see in the north and the south Sorry, in the east and the west off the north wall, we can see tungsten veins expressed surface that are currently in what's classified as a waste zone. We have to mine that anyway, but we're now drilling that out to actually bring that into the resource and reserve.
Our expectation is we'll get additional tonnage from both a resource and an infill reserve perspective. Ideally, we would like to be reporting a new JORC resource and reserve by the end of 2026, is our target, but it just depends on how long it takes to get the drilling done, assayed and modeled. That's the intent there, but at this point the work's going well. We do have it broken up into a number of phases, and if we see the results that we expect in phase 1, then we will also undertake a phase 2 and phase 3 drilling program while we've got the rigs on site and we're generating the cash flow out of the business as we go forward to underpin that drill program.
That then puts us in a much better position strategically to, one, increase the mine life at Carbine from the current eight years to, you know, a longer mine life by spending the in-ground money to do that. Also it just helps us strategically in terms of our long-term mine plan, what we're producing when, and looking to bring on multiple faces. You know, one of the challenges at Carbine at the moment is we only have one ore face operating. We will fix that as we pull down the waste at the other end that sits on top of the Iolanthe to get two ore faces running. That then ends up giving you more continuous feed to the processing plant.
Ideally, what I'd like to have is three or four ore faces so that I can actually have the optionality to bring in tonnes from different locations so that, you know, if we do have technical issues or we have weather issues, we're not beholden to it. We've actually de-risked our operation to bring on multiple faces. That's really the focus on Carbine. Once that drill program is finished, we will relocate the rigs. At this stage that would be around mid-July down to Wolfram Camp. The intention at Wolfram Camp, there is the old Wolfram Camp and Parrot pits. You know, we had to put out a clarifying announcement around those in terms of it's a foreign resource. We need to do the work ourselves to convert that into a JORC resource and reserve.
The thing there would be our expectation is going into the old pit, that last pit was in operation 2019. Tungsten price was variably between AUD 165 and AUD 250 per MTU when that was in operation. We expect to do the drilling. We also expect that, you know, we expect that'll be positive and ideally we would like to be back in there subject to Queensland Government approval and approval of a new ML over it. We'd like to think we can get back in there within 18 months with a view to be, you know, mining, crushing, sorting material for then processing at Carbine and taking advantage of the excess capacity we've got in the gravity circuit. That also then ties into the expansion that we're planning to undertake at Carbine.
We've completed the engineering review on that or the engineering update. We have made changes to what we were originally planning to build. We've undertaken a lot more automation in that circuit that will then further lower our operating costs. The key to it is doubling the crushing capacity to then take advantage of the unutilized capacity in the backend gravity circuit. We've taken that to the board. We're finalizing a couple of elements of that, expect to give an update on that over the next four or so weeks in terms of that expansion.
Thanks, Craig. Pretty comprehensive discussion about exploration and activities over the quarter there. I'm going to move on to financials and the balance sheets and directing this question to Jono. Can you walk us through the key financial takeaways this quarter and how investors should think about EQR's funding position from here?
Thanks very much, Peter. I think, from a quarter perspective, we did generate some strong revenues despite the low production, as outlined by Craig. Generated AUD 32 and a half million. We received AUD 19 million-AUD 20 million. That pretty much covers our costs if you look at it from a revenue perspective, and it's really a timing piece of, I guess, the receivables because we had AUD 15 million receivables due and payable at the end of March. We also significantly reduced our prepayments down by AUD 7 million. During the quarter, we continued to focus on the balance sheet. We completed the refinancing of the Spanish debt.
You know, from December, mid-December, we've dropped it from EUR 20 million down to EUR 15 million with payments of cash flow and that's now over a three-year period, which really strengthens our immediate working capital. In March as well, the shareholders approved the final conversion of the Oaktree debt from AUD 7.25 million to equity, furthering strengthening that balance sheet. In terms of production that's happening in April, in terms of the cash that we have on hand of, at 31 March of AUD 15 million- AUD 16 million, we believe we're in a very, very strong position to continue the ramp up at both Mount Carbine and recover at Barruecopardo. And with the strong tailwinds of the pricing, we don't anticipate any further needs for funds at this stage or in the near term future to meet our objectives.
I know there's been a lot of noise around, in the markets around potential capital raises, but look, we believe we're in a very strong position and that our cash balance now is continuing to build through April and into May. Just on mute, Peter, so. Still on mute.
Yeah, you're on mute, mate.
Sorry about that.
To admit your mistake. Jono, I was talking about governance to myself. Can you provide an update on the governance and the broader corporate build-out?
Yeah. Obviously we've come a long way as a business and we're now in a position to start getting key roles into the organization that we generally haven't had previously. It's great to have Michael Nossal appointed as our Independent Chairman. He officially started 1 April . We're already starting to see a change in expectations on management and the board and it's really good to have him supporting us. In terms of the broader business, we're employing roles that we haven't had previously, like a Head of IT. We got a Group Reporting Manager starting tomorrow. We've also focused on building capabilities within the business around enhancing technical services, enhancing our mine managing capacities and capabilities, including the processing.
you know, we're doing all the build-outs that people would expect us to be doing, to realize our objectives of our aspirational targets.
How much does that play into the interest from offshore larger institutions? There'll be different screens they have to tick when they look at companies like EQ Resources. I know there has been a lot more interest offshore lately.
Yeah. I think myself and Craig did the numbers the other day. Between the two of us, we've spent about 80 hours with various investors, with significant inbound coming from the U.S. and in Europe. On average, we're probably doing, between the two of us, probably doing anywhere between four and six meetings with U.S. investors. We don't see that slowing up. There's significant inbound at the moment.
Craig, obviously the record tungsten price is really the key driver and makes EQ Resources quite unique in its position in the critical minerals market. Once upon a time, U.S. investors have never seen or heard of a mining operation, and now it's part of the daily news flow in the U.S. What else is driving market interest here that you can discuss?
Yeah. I think there's a couple of things. You know, like through 2025, you know, we had solvency risk, we had liquidity risk, we had governance risk. I think the fact that we resolved those largely in the December quarter has enabled investors to look past that and understand the assets, understand the potential of the assets. At the same time, we saw across March quarter a significant increase in the price. You know, I think the price at the end of December 2025 was AUD 1,000 an MTU. It's sitting at AUD 2,800 at the moment, has been flat for the last few weeks. Now people are looking at, well, tungsten's interesting. Who's producing? In listed vehicles of producing assets, there's pretty much only two in the world.
That brings people to, you know, one or two companies, of which EQR is one. The key to us or key for us is ensuring that we continue to deliver on what we say we're gonna do, and ensure that we build that confidence by the investors, suppliers, customers, and the employees in terms of wanting to be a, you know, a go-to company to work for, such that that'll all enhance our ability to continue to deliver. I think the increased appetite in EQR, we've de-risked the organization for investors, you know, moving the assets up the production curve into a fantastic demand and price environment. That's all aligning really well for us.
I think globally there just continues to be a lot of appetite for critical minerals, tungsten in particular. Obviously geopolitical tension, you know, China restrictions. Those China restrictions have continued. You know, the, the Chinese state-owned enterprise, you know, you look at the top five China producers, they made record profits in 2025. There's no incentive for them to go and do anything different to what they've been doing in the market for the last 12 months. We expect that the current shortage in the rest of the world is gonna continue. The rest of the world is bifurcating.
There is clear desire for governments to ensure that there is supply chain separate and independent and transparent to historic supply chains, and that's all about ensuring competitiveness in their downstream industry and ensuring that it doesn't, you know, doesn't disappear for a lack of raw material because of predatory practices from the past. I think we're in a good space. We've got a good runway of five years ahead of us as a producing asset, being able to expand our existing assets into that environment. Obviously five years out, there's potentially for a number of projects to come into the market. They are, they have a lot of other risks ahead of them that we've already solved.
Craig, the 2026 outlook, how would you summarize the company's position entering this next phase?
Yeah, look, it's, you know, we're at a pivotal point in the growth of EQR. You know, go back 6- 9 months, we were a junior with aspirations. Now we're, you know, we're heading into being a mid-tier company with further aspirations. We had a strategy session with the board early March. We went through with the board where we were, what we're doing, and where we're going. You know, core focus for us. Given that the market shortage in available, you know, concentrates is to focus on core business. We've got assets that just have not had the work done on them in terms of, you know, both, Barruecopardo in Spain and Mount Carbine in Australia.
You know, they haven't had the drilling, haven't had the money to expand the plant, haven't had the money to advance the EPMs in Spain or the exploration licenses we've got in Australia. We're now in a financial position to be doing that. That's actually our cheapest units that we can bring to the market. Focus in the business is getting more units into the market, also with the mindset that five years out we expect there to be more competition. How do we actually embed in our business to ensure that we are cost competitive irrespective of what the future looks like?
That's where things like the expansion that we're working through at the moment, which we intend to undertake at Carbine, subject to final board approval, it, you know, it will lower our operating costs by about 30% per tonne processed relative to where they are today. You know, we handle a rock at Carbine at the moment, because it's multiple pieces of plant that are not connected, we handle every rock 13 times before it gets into a bag. We will drop that with the automation that we're looking to put in and the streamlining the plant with hoppers and conveyors and sequencing. We'll drop that by 8- 10 times compared to where we are today. That lowers our operating costs, lowers our diesel consumption, lowers and simplifies the operation.
They're the things that we be undertaking. Increasing production but also positioning ourselves to be, you know, one of the lowest cost producers in the Western world for the future. I think that's critical to us going from, you know, an aspiration to a solid delivering asset that can significantly grow from where it has been in the past.
That's an excellent position to be in. One of the lowest cost producers operating mining operations in great jurisdictions. You're not out in the South Sahara or the middle of the Western Australian desert. Wolfram Camp coming on will give you three excellent mining operations. What's your aspirational target for when that might come on? When can we likely to see Wolfram Camp in production?
Well, in discussion with the Queensland Government, they indicated that there's a pathway to get an ML approved within 12 months. I find that difficult to believe. I think 18 months is more realistic, right? We've got to get the drilling work done there to prove that up and move forward. And to be honest, ultimately that's where I'd like to see government support. You know, in the current market I think we can fund what we need to fund in terms of our drill programs, our exploration programs, our plant expansions.
Where I'd like to see government support is in, you know, cutting the red tape and enabling fast-track development of assets, in particular when they're existing abandoned mines that were handed back to the government with liabilities attached to them, that at the moment the government's on the hook. I'll fix that for you, but, you know, give me a fast track into development. I can actually get more tungsten units out into the marketplace than what I can today. In actual fact, if we were mining that today, we'd be producing more tungsten units today than what we are because at the moment, yes, we're feeding the Iolanthe Mine system, but we've still got some lower grade from the 13 million tonnes of 0.07% low-grade stockpile. I can fully displace that and get more units out.
Yeah, government support should be very much focused on fast-tracking developments. You know, I think in Queensland recently there's been a lot of momentum behind oil and gas and Taroom. That's good to see. We'd like to see that across Australia in its entirety in terms of government support for mining projects.
That's pretty positive so far. We'll wait and see how they go with the ML. Still on the expansion theme, we've had some questions coming in about the Tungsten Metal Group potential acquisition that the company and the board's been looking at. Can you give the market an update on that?
Yeah, look, we've continued dialogue with them. We've continued to look at the business case. We've got some further discussions with the board in terms of where that sits as a priority for us relative to other opportunities that we're working through, and we'll give the market an update in due course. Right. It's not, certainly not something we were looking to rush into. It's a matter of making sure that, you know, what we focus on. Cause at the end of the day, you've got to look at time resources, people resources and financial resources. You know, historically EQR's had a lack of financial resources.
Equally, as we do the developments in the current assets, we've got to be mindful of what we're doing with our people resources and making sure we don't stretch ourselves too thin. You know, we're still finalizing discussions there, and we'll give the market an announcement in due course.
Craig, we've had a couple of questions coming in around production cash flow. Can you talk about your production estimate for Q4 2026 and perhaps the first half in 2027? What's your outlook on that?
The, I'm not sure how much I'm allowed to say these days 'cause, like, ASX have put restrictions on how much we can say in terms of forward-looking statements because they still consider us as an explorer as opposed to a producer. I don't quite understand why. You know, we're told that we can't give guidance until such time as we have three quarters of positive cash flow and we have the going concern issue removed from our financial statements. Going concern, well, we're still in the December quarter statements. We expect that to be fully resolved in the June half. Look, I can talk about production. Assets are coming up the curve. March quarter was disappointing. You know, I expected to do a lot better in March than what we did.
Yeah, fundamentally Spain ran at half what it should of because of the wet weather. Out of Australia we did 4,000 MTU for the quarter. That was significantly impacted by the fact that we didn't get continuous feed from the Iolanthe through into February, into March. That has now commenced at the end of April, we're about a month behind where we would've liked. You know, we will do, you know, in April I expect to do the equivalent of what we achieved for the quarter at Mount Carbine in a month. That's really ramping up on based on, you know, the last week of April.
You know, I think I've previously mentioned that we expect this asset in Carbine to be running around that 10,000-12,000 MTU a month as we ramp up towards 1,750 tonnes a year. You know, we expect to do that this year calendar-wise, and then ramp that up to 2,500 tonnes as we get, you know, full access to the large vein system and continuous feed into the plant, right? Ideally we would like to think that we could have the crushing circuit expanded by February 2027, and that doubles the production capacity by doubling our crushing capacity from 87,000 tonnes to 170,000-180,000 tonnes per month. It really comes down to what feed sources we've got available.
As a minimum we'd be feeding the low-grade stockpile, ideally by then we'll actually have additional faces available, which is why we're undertaking the drilling now at Carbine and the drilling then at Wolfram Camp later in the year. If we can get those additional faces available, we'll have a much higher average feed grade going into the Carbine crushing circuit, obviously the Carbine gravity circuit. You know, that has us producing at a higher rate. I don't have a number on what that rate is at the moment for public audience because it really depends on the outcomes of the drilling we're undertaking. You know, it's higher than certainly a lot higher than where we are today.
Thanks, Craig Bradshaw. We've had a few questions relating to the closure of the Strait of Hormuz restricting oil flow and also, funnily enough, production of sulfuric acid, which is used in a lot of mining operations. Can you comment on any impacts that you may or may not be seeing from those two inputs?
Sulfuric acid doesn't impact on our operations. In Australia, our operation in Australia is chemical free. We don't have any chemicals in the process. It is a pure gravity circuit. We may contemplate using chemicals there in the future, but that would be to do with removing some impurities. We don't use sulfuric acid. Over in Spain we do use chemicals in that operation, but largely that's for some impurity removal. Again, we don't use any significant volumes of sulfuric acid in that operation.
We're more or less, you know, buffering down to a pH five for removal of arsenopyrite but, you know, it's not significant volume so we don't expect any issue perspective. I guess the bigger issue would be on fuel. Our Spanish operations, and, you know, Spain in particular has had no issues in terms of fuel supply. Government in Spain done good work in terms of ensuring available fuel supply for industry and consumers. They've got manufacturing capacity and they've got reserves. You know, from a community perspective, there's been no issues in Spain as we understand it either. Our Spanish operation's all good. Our operation in Australia at Carbine, we have not had any fuel issues.
Our supplier has significant storage volume in North Queensland. We also have, we've doubled our storage capacity on site, in terms of ensuring that, you know, even if there's short-term blips in availability, we're covered from that perspective and we're during the process of finalizing contracts to enable a further doubling of our storage capacity nearby from our mine site perspective. From that point of view, we haven't had any fuel availability issues and we don't expect to have them going forward. Equally from a expansion perspective, as part of the expansion we're gonna be taking the opportunity to increase our grid supply, within that context our future reliance on oil supply will be reduced as well.
Thanks, Craig . I think finally, a number of questions that I've been receiving, regard the potential for a U.S. listing. Do you see that as a potential for the company in the near term and/or does it restrict any of the investment you're seeing coming in from U.S., American or European institutions?
I can take that one if you want, Craig. I think, you know, Ultimately, we are looking at where to next as the business grows. We have started looking at the U.S. listing. A Nasdaq listing will take time. I guess we're not saying no, we're just not saying right now as we, as we look to where we go to as a business, as we grow and start accessing the broader markets. We haven't heard of any constraints in terms from the U.S. investors. We've had many institutions mention that they can actually buy us on the ASX anyway, so they don't see it as a hard stop for us. There is obviously a value proposition there that we continue to review and work through as the business grows.
One constraint that has appeared is that in some countries in Europe you need to have what's an LEI to help facilitate various people such as in Germany to be able to be acquiring ASX listed stocks. We now have that opens up that avenue for them.
Plenty of opportunity. Pretty much concludes most of the questions here. Craig, any further comments for shareholders, investors, leading to the next few months?
The question for Jono. What's our bank balance today look like? I think that was one of the questions I saw pop up from someone.
Yeah. I think, it's probably about AUD 22 million. Then on top of that, I don't have the exact accounts receivable on my, off the top of my tongue, but it's, it continues to grow given the volumes shipped in April. continues to grow and flow through.
Yeah. The other question I did see that came through was around what, you know, how do we ensure that we don't have weather impacts in the future? Look, it requires an investment. Essentially, the ore both at Barruecopardo and at Carbine does not degrade. We can mine it, we can stockpile it ahead of the processing plant, and then if there are weather issues, we can process through that. We're doing the numbers at the moment, but we expect. Ideally, we'd like to be in a position to have a stockpile of two months of supply sitting on both ROM pads in Spain and in Australia, such that we can then draw from that continuous through the wet season, and so that way we can disconnect mine activity from processing plant.
Obviously, that's an investment in additional equipment. We need then the faces available at both operations to then pre-mine material ahead of when we otherwise would have. You know, there is an investment in it. It would probably cost us somewhere around AUD 2 million-AUD 4 million per site to do that. We're finalizing that. We see that as the most simplest and easiest, you know, risk management perspective from a wet season as opposed to, you know, increasing fleet in the short term or trying to deal with the significant weather events. At the end of the day, you can't control them. What you can do is prepare for them and have risk mitigations.
I think it's something that the EQR had been aware of in the past, but just didn't have the financial wherewithal with, in which to implement it. Now that we're in, our production's moving up, prices are fantastic, you know, we've got excellent demand for all our products, we're in a unique position to make those style of investments to de-risk our business going forward and just have, you know, continuous production and cashflow across the seasons.
Well, gentlemen, thanks very much for that report. It concludes a solid and very impressive quarter. With the pricing environment we have, the cash flow, the balance sheet, that Jono's just let you know how much you've got money to spend, the company looks like it's well-positioned for shareholders and any new investors that are looking to gain exposure to this very, very interesting metal. Thank you for your report today, Jono and Craig. For everybody watching, this will be available as a recorded video once we have it uploaded. If you do have any further questions for Jono or Craig, please send them in to peter@nwrcommunications.com.au and we'll make sure they get through. Thanks for attending today.
Thank you all. Stay safe.
Thanks very much.
Cheers.
See you. Bye.