Twiggy Gets Some EQ Resources Exposure

• Andrew Forrest has acquired a 16.8% stake in critical minerals miner EQ Resources (EQR AU) from Oaktree. Shares promptly popped ~34% on the news yesterday.

• Oaktree has been a substantial shareholder since the 18th January 2024, paying A$25mn for a 15% stake; and appears to be exiting for A$190mn. Nice.

• EQR is primarily a tungsten miner in Australia and Spain, accounting for the majority of each country’s global supply output of 1.2% and 0.9% respectively. China commands 85%.

The Trade:

• EQR is a rare Aussie-listed tungsten play.

• But it is also up 676% in the past twelve months.

• I don’t have a strong conviction here. Evidently Twiggy does.

• In this rare-earth/critical minerals space, I like Arafura Rare Earths (ARU AU) and Lynas Corp Ltd (LYC AU).