
Ecora Resources PLC (LSE/TSX: ECOR) issued a trading update for the 4th quarter of 2024 that saw royalty income rise 9% for the full year. Ecora expects more royalty growth in 2025 and continues to believe income can rise towards $100 million over the next few years, from $60 million in 2024.
Highlights:
- Total royalties grew 9% over 2023.
- Coal royalties up 13% for the full year 2024 and are expected to be another 5%-10% higher in 2025.
- Cobalt royalties continued to ramp with 7 deliveries in the quarter compared to only 8 in the previous nine months. Ecora expects 24-28 deliveries in 2025 leading to significant royalty growth at Voisey’s Bay in 2025.
- Copper output at Mantos Blancos is expected to rise 20% in 2025. This royalty is 10% of total company royalties.
- 2023 likely marked the bottom for earnings with growth expected through this decade.
- 4.5% dividend yield on top of 9% annual royalty growth expected in the medium term.
Bottom Line:
Ecora is at an inflection point that offers what looks like a very attractive entry point for new investors. The stock is at a 60% discount to NAV even though management has a multi-decade track record of growing royalty income and the borrowing capacity and desire to sign new royalties, growing the NAV even further.
Ecora is going through a rapid transformation from a coal royalty company to a battery metals royalty company. Coal will decline from 65% of income in 2024 to only 10% in three years, driving a likely rerating of the 60% discount to peers and NAV.
Royalty volumes were up 9% in 2024 and are expected to increase again in 2025 with cobalt and copper volumes growing nicely. Royalty income is expected to grow from $60M in 2024 to $100M or more over the next few years even with the coal royalty rolling off.
Ecora is at an inflection point that offers what looks like a very attractive entry point for new investors while currently paying a solid 4.5% dividend yield.
Medium Term Royalty Outlook

Ecora trades at such a deep discoint to net asset value that even currently producing royalties are not fully priced in. Investors are currently discounting producing royalties net of debt by 20% and acribing no value to the entire growth portfolio.
Investors who buy the stock now will own a basket of metals with strong future growth prospects at a more than 60% discount.
Ecora at 20% NAV discount to producing royalties and a 61% discount when including future growth.
Ecora trades at only 5.6x EBITDA while royalty peers are 2-5x higher. The potential for a significant rerating, as the portfolio transitions to future facing commodities and away from coal, is definitely there along with fundamental earnings and dividend growth.
Ecora (White) NTM EV/EBITDA vs Peers

Fourth Quarter 2024 Portfolio Commentary
Quarter Highlights:
- 9% increase in portfolio contribution for the year ended 31 December 2024 of US$63.2m (2023: US$58.2m)(1)
- Total portfolio contribution of US$6.7m in Q4 2024 (Q4 2023: US$9.0m(1); Q3 2024: US$5.2m)
- Completion of the Voisey’s Bay Mine Expansion project, underground mining activities continue to ramp up to steady state production rates, with record levels of underground production during the period driving net portfolio contribution of US$2.3m (Q3 2024: US$1.2m):
- Seven deliveries in Q4 2024 (Q3 2024: 4 deliveries) led to a total of 15 deliveries in FY 2024; at the high end of FY guidance of 11-16 deliveries (FY 2023: 11 deliveries) o Realised Q4 2024 average sales price of US$12.9/lb (Q3 2024: US$11.4/lb)
- Record Mantos Blancos quarterly portfolio contribution of US$1.7m in Q4 2024 (Q3 2024: US$1.3m)
- The operator of the Four Mile mine continues to report that no royalty income is due, despite production continuing. The Group has formally exercised its information rights under the royalty agreement to understand the circumstances, following which it will take such action as it considers appropriate
- Net debt at 31 December 2024 of US$82.4m (Q3 2024: US$85.5m)
Q4 2024 Results Table
Outlook for 2025
- Overall: 2025 production volumes are expected to grow relative to 2024, driven mainly by:
- Voisey’s Bay: the Group is expecting between 335 tonnes and 390 tonnes (24-28 deliveries) of attributable cobalt metal in 2025 (2024: 210 tonnes (15 deliveries)) as the ramp up continues
- Kestrel: saleable volumes produced within the Group’s private royalty area are expected to be 5-10% higher than those achieved in 2024 (c. 2 Mt)
- Production primarily expected in the Group’s private royalty area in Q2 and Q3 2025 o Mantos Blancos: increased copper production due to higher mill throughput with operator guidance of between 49,000 and 59,000 tonnes (2024: 44,574 tonnes)
- Volumes weighted towards H2 2025 given planned maintenance in Q1 2025
- Capstone plans to progress partnership discussions and its financing strategy for Santo Domingo throughout 2025, with a potential project sanctioning decision not anticipated prior to 2026
- Capstone has allocated approximately US$50m of capital expenditure in 2025 to the Santo Domingo project
- Business development activities remain focused on growing the Group’s near-term income producing royalty portfolio
Portfolio Updates:
- Capstone Copper (“Capstone”) is targeting the completion of a Mantos Blancos Phase II Expansion Feasibility Study by the end of 2025
- Capstone is also evaluating Mantos Blancos tailings reprocessing that could increase copper production by ~25 ktpa for 15 years with no additional mining or crushing costs
- Largo Inc. published an Updated Life of Mine Plan and Pre-Feasibility Study in respect of the Maracás Menchen mine which included a 13-year increase in the reserve-based mine life (out to 2054) and a 67% increase in Mineral Reserves
- Brazilian Nickel received a letter of interest from the U.S. International Development Finance Corporation expressing interest in providing the Piauí Nickel Project with a loan facility of up to US$550m, representing approximately 40% of the overall financing package
- Rainbow Rare Earths released an Interim Economic Study confirming the Phalaborwa rare earths project as one of the highest margin rare earths projects globally outside of China
- In line with guidance, Kestrel Q4 2024 production mainly outside of Ecora’s private royalty area
- Cyprium Metals Limited (“Cyprium”) published a Pre-Feasibility Study for the Nifty Copper Mine Complex which estimated that the Initial Cathode Project will produce an annual average of 6Kt of copper over four years and forecast that the Copper Concentrate Project will produce an average of 38.7 Kt of copper over an estimated 20-year reserve-based mine life
- In December, Cyprium launched a A$13.5m fundraising, with the majority of the funds being used to advance the Nifty project. Cyprium expects the fundraising to complete in the next month
- NexGen Energy (“NexGen”) completed its 2024 drilling programme in the Patterson Corridor East (PCE), establishing a substantial 600m strike and 600m depth uranium zone only 3.5km from the flagship world-class Arrow deposit. A significant drill program in 2025 is planned at PCE, where NexGen believes there is the prospectivity for material growth
Post-Period Events:
- Approval of Whitehaven Coal’s Narrabri Stage 3 project triggered Ecora’s right to a total of US$5m in contingent consideration of which US$3m was received this month. The remaining US$2m will be paid in equal instalments in January and December 2026
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 acoal 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.
Ecora Resources is a market awareness client of Capital 10X. For more information, including potential conflicts of interest please see our Content Disclaimer.