Ecora Resources PLC (LSE:ECOR)(TSX:ECOR)(OTCQX:ECRAF) reported another quarter of royalty growth, on a trailing twelve month basis, in the first quarter of 2025 and guides to strong quarterly growth through the rest of 2025.
Highlights:
- Portfolio contribution of $6.0m (Q4 2024: $6.7m) down primarily as a result of the timing of cobalt deliveries from Voisey’s Bay
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Voisey’s Bay continues to ramp up post-completion of the underground mine expansion project:
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56 tonnes of cobalt received during Q1 generating $1.3m (Q4 2024: $2.3m) at an average realised price of $13.28/lb
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Further 28 tonnes received to date in Q2 2025 at an average realised price of $18.63/lb;
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40% increase in realised price of cobalt sold in Q2 to date vs Q1 reflects the increase in cobalt prices since early March following the Government of the Democratic Republic of Congo announcing a cobalt export ban
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FY guidance unchanged at 335-390 tonnes of cobalt attributable to Ecora; expected to be c. 60% weighted to H2 as production from underground mine continues to ramp up
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Mantos Blancos delivered a second consecutive record quarterly portfolio contribution of $1.8m (Q4 2024: $1.7m) following the successful completion of a debottlenecking project in H2 2024
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Acquired a copper stream over the producing Mimbula copper mine for $50m:
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Ecora’s initial copper entitlement in Q1 (post transaction) of 75.0 tonnes
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Revenue will be recognised in Q2 when the copper units are received and sold
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EVBC benefited from high gold prices and generated a portfolio contribution of $0.8m (Q4 2024: $0.7m)
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Four Mile portfolio contribution of $0.1m (Q4 2024: nil), not yet reflecting the return to normalised sales volumes during Q1 as revenue reporting lags a quarter
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Kestrel operations remained outside of the Group’s private royalty area for the majority of Q1 with the Group’s 2025 volumes expected to be weighted to Q2 and Q3
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Agreement reached with Whitehaven Coal under which the Group received $6.2m as an acceleration of all outstanding payments, including contingent and deferred consideration, with respect to the sale of the Narrabri thermal coal royalty
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Increased, amended and extended the Group’s revolving credit facility resulting in total commitments increasing by $30m to $180m and the maturity being extended 12 months to end January 2028
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Net debt at 31 March 2025 of $125.9m (31 December 2024: $82.3m)
Q1 2024 Earnings Table
About Ecora Resources
Ecora Resources is a leading royalty company focused on supporting the supply of commodities essential to creating a sustainable future.
Our vision is to be globally recognised as the royalty company of choice synonymous with commodities that support a sustainable future by continuing to grow and diversify our royalty portfolio in line with our strategy. We will achieve this through building a diversified portfolio of scale over high quality assets that drives low volatility earnings growth and shareholder returns.
The mining sector has an essential role to play in the energy transition, with commodities such as copper, nickel and cobalt – key materials for manufacturing batteries and electric vehicles. Copper also plays a critical role in our electricity grids. All these commodities are mined and there are not enough mines in operation today to supply the volume required to achieve the energy transition.
Our strategy is to acquire royalties and streams over low-cost operations and projects with strong management teams, in well-established mining jurisdictions. Our portfolio has been reweighted to provide material exposure to this commodity basket and we have successfully transitioned from a coal orientated royalty business in 2014 to one that by 2026 will be materially coal free and comprised of over 90% exposure to commodities that support a sustainable future. The fundamental demand outlook for these commodities over the next decade is very strong, which should significantly increase the value of our royalty portfolio.
Ecora’s shares are listed on the London and Toronto Stock Exchanges (ECOR) and trade on the OTCQX Best Market (OTCQX: ECRAF).
Ecora Resources is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer.
