EQ Resources Shares Tumble 11% Despite Record Tungsten Revenue as Investors Lock In Gains After Huge Rally

SYDNEY — Shares of EQ Resources fell more than 11% on Tuesday, even after the Australian tungsten miner reported record quarterly revenue and a near-tripling of its cash balance, as investors appeared to take profits following a massive rally in the stock this year.

The stock dropped 4.5 Australian cents, or 11.39%, to close at 35 cents on the Australian Securities Exchange. Shares had briefly jumped about 6.3% to 42 cents shortly after the company released its quarterly update, before reversing sharply and sliding through the rest of the session.

The decline extends a volatile stretch for the stock. EQ Resources fell 11.24% last Thursday to close at 39.5 cents, meaning the shares have now lost more than a fifth of their value in two trading sessions on which they moved.

The selloff came on a day when the broader market rose. The S&P/ASX 200 index gained 0.57% to close at 8,735.7, its third straight session of gains.

Record quarter

The drop came despite strong results for the three months ended Sept. 30, the first quarter of the company's 2027 fiscal year.

EQ Resources said revenue rose 101% from the previous quarter to a record 158.8 million Australian dollars, driven by sharply higher production and stronger tungsten prices. Sales volumes totaled 49,715 metric tonne units of tungsten trioxide.

Consolidated production rose 81% from the June quarter to 51,233 metric tonne units, the second-highest quarterly total in the company's history.

Cash on hand jumped 192% to a record 82.3 million Australian dollars.

The company's average realized tungsten price rose about 20% to $2,248 per metric tonne unit.

The latest figures built on what had already been a record June quarter, when EQ Resources reported revenue of 79 million Australian dollars, up 140% from the prior quarter, and record operating cash flow of 22.5 million Australian dollars.

Spain leads the way

The company's Barruecopardo mine in Spain's Salamanca province was the standout performer.

Barruecopardo produced a record 34,088 metric tonne units in the quarter, up 123% from the previous quarter. The operation had been recovering from flooding that disrupted output earlier in the year, when production fell to 15,265 metric tonne units in the June quarter.

The company's Mt Carbine operation in North Queensland also grew, with production rising 31% to 17,145 metric tonne units. Mt Carbine sold 16,568 metric tonne units at an average realized price of $2,110 per unit.

Mt Carbine had already posted a strong June quarter, with production jumping 176% as mining reached higher-grade areas of the deposit.

Why the stock fell

The company did not comment on the share price move, and there was no other price-sensitive announcement on Tuesday.

The decline appeared to reflect profit-taking after a dramatic run-up in the stock. EQ Resources shares have surged more than 500% from the 5-cent price of a share placement in December 2025, making it one of the strongest performers on the ASX this year.

Strong results are sometimes followed by selling when investors have already priced in good news, a pattern traders often describe as "sell the news." With the company having reported record monthly revenue figures in recent months, including record revenue of 51 million Australian dollars in July alone, much of the quarter's strength may have been expected by the market.

Small-cap resources stocks are also known for sharp price swings, particularly after big rallies.

Forrest backing

EQ Resources has drawn significant investor attention this year, including from Australian mining billionaire Andrew Forrest.

Forrest acquired a substantial stake in the company through his investment vehicle, Wonongarra Pty Ltd, buying shares previously held by Oaktree Capital. The stock surged about 34% on the day that stake was announced.

The company has also discussed a potential listing pathway in the United States as it seeks to expand its investor base, according to an interview with managing director Craig Bradshaw published in August.

Tungsten in demand

EQ Resources has benefited from a sharp rise in tungsten prices, as Western governments and manufacturers seek supplies of critical minerals from outside China, which dominates global tungsten production.

Tungsten is used in a wide range of industrial and military applications, including cutting tools, armor-piercing munitions, electronics and aerospace components. Its extreme hardness and high melting point make it difficult to replace.

Tungsten prices have surged over the past year, with benchmark prices up more than 500% from a year earlier by mid-2026, according to company figures. Restrictions on Chinese exports and new U.S. rules targeting tungsten supply chains have added to demand for producers in allied countries.

EQ Resources is one of the few tungsten producers operating outside China, with mines in Australia and Spain.

Growth plans

The company is pursuing further growth across its portfolio.

Drilling is underway at both Mt Carbine and Barruecopardo, and EQ Resources has identified its Wolfram Camp and Mount White projects in Queensland as the next potential sources of production.

Mt Carbine holds a JORC-compliant mineral resource of 41.36 million tons at a grade of 0.23% tungsten trioxide, according to company disclosures.

Barruecopardo has been producing high-grade scheelite concentrate since 2019 through the company's Spanish subsidiary, Saloro.

Investors will look to the company's annual general meeting, scheduled for Oct. 23, for updates on production targets, expansion plans and the potential U.S. listing.

Analysts and investors will also be watching tungsten prices closely. Further strength in prices could support earnings, while any easing of supply concerns could weigh on the stock after its rapid rise.

Despite Tuesday's decline, EQ Resources shares remain far above where they started the year, reflecting the market's enthusiasm for critical minerals producers outside China.