EQ Resources Rides a Tenfold Tungsten Price Surge

Fund managers say China's export restrictions have transformed the economics of this ASX-listed tungsten producer's two mines

30 Jun 2026 · 4 min read

A Chinese export squeeze on tungsten has turned EQ Resources, one of the only tungsten producers listed on the ASX, into one of the standout small-cap re-rating stories of the past year, with the commodity price rising close to tenfold.

China's export restrictions spark a price spike

Cadence Capital's December 2025 presentation explained the setup: China produces around 80 per cent of the world's tungsten and restricted exports in 2025, sending prices up 500 per cent. With EQ Resources set to double production over the next 12 months into a rising price environment, Cadence pointed to an expected free cash flow yield of 30 per cent and earnings per share growth of over 200 per cent at spot prices, even after the initial share price gains.

China produces around 80% of all the tungsten in the world and restricted exports in 2025, sending tungsten prices up 500%. EQR will double its production over the next 12 months in addition to producing into a rising price environment. At current prices, at spot price, EQR is expected to deliver a free cash flow yield of 30% and EPS growth of over 200%.

— Cadence Capital, Presentation, December 2025

Two mines, a turnaround completed

Terra Capital's March 2026 quarterly update detailed the operational transformation behind the two producing mines: Mount Carbine in Queensland, producing tungsten periodically for over 100 years, and Barruecopardo in Spain, acquired out of financial distress in early 2024 in exchange for EQR equity and the assumption of €25 million in debt. Terra Capital reported EQ Resources had since invested A$25 million into Barruecopardo, lifting FY25 production to 119,000 metric tonne units at a cost of $300 per unit, and restructured debt with US EXIM Bank support attached to a five-year offtake agreement, positioning the company as the second-largest tungsten producer outside China.

A rapid re-rating draws early profit-taking

Paradice Investment Management's March 2026 update showed the scale of the re-rating from an early entry point: the fund took a small position in October 2025 when EQ Resources carried a market cap of just $175 million, at what it estimated was less than one times cash flow given the risk of a stronger tungsten price. The commodity price far exceeded those assumptions, and Paradice had already taken more than its initial capital out of the position while continuing to see valuation support for a significantly higher share price if prices held.

We took a small position in the name in early October 2025, given the company's strategic nature and strong leverage to the Tungsten theme as the stock price hadn't meaningfully reacted to the Tungsten market dynamics. The commodity price far surpassed those initial assumptions, and we have seen a significant rally in the EQR share price.

— Paradice Investment Management, Monthly Report, March 2026

Weather and regional pricing add volatility

Not every month brought gains. Ellerston Capital reported shares falling 16 per cent in April 2026 despite the tungsten price rising further on shortages, and Perennial Partners noted a further 14.8 per cent fall in May on lingering rain impacts to the Spanish operations and some softness in Chinese tungsten pricing, though Perennial pointed out EQ Resources actually receives the European tungsten price, which had held near its highs. By June 2026, Cadence Capital reported tungsten prices had risen from around US$300 to around US$3,000 per metric tonne unit since China's 2025 export restrictions, with EQ Resources remaining one of the key contributors to its fund's performance for the year.