Ecora Resources Aggressively Buying Back Shares, 36% of Authorization Now Complete

Bottom Line:

Ecora has been aggressively buying back stock since announcing a US$10 million buyback program on March 27th (4% of shares outstanding). 36% of the program has been completed as of yesterday.

The buyback pace shows management believes the stock is significantly undervalued at current prices. Since the buyback program commenced 12 trading days ago, the stock is up 12% and a further 22% from the year’s low.

With significant exposure to high demand growth commodities like Copper, Cobalt, Uranium and Nickel and an undervalued growth runway, Ecora’s 50% discount to peers should continue to close, generating attractive returns for investors on top of rising cashflow from expected higher commodity prices.

Ecora Resources PLC (LSE:ECOR)(TSX:ECOR) announced that on 15 April 2024, it purchased 500,000 ordinary shares of 2p each in the Company (the “Shares”) on the London Stock Exchange through Peel Hunt LLP, in accordance with the terms of its share buyback program announced on 27 March 2024 (the “Program”). The shares acquired will be held in treasury.

Following the purchase, the Company will have 261,732,553 ordinary shares of 2p each in issue, of which 7,825,656 ordinary shares are held in treasury. Therefore, the total number of ordinary shares carrying voting rights will be 253,906,897.

The above figure of 253,906,897 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.

In accordance with Article 5(1)(b) of Regulation (EU) No 596/2014 (the Market Abuse Regulation), the table below contains detailed information of the individual trades made by Peel Hunt LLP as part of the Program.

Share Buyback Details as of April 16th

Date Shares Cost ($USD)
4/3/2024           350,000 $347,199
4/4/2024           500,000 $508,000
4/5/2024           388,920 $394,352
4/8/2024           300,000 $314,211
4/9/2024           150,000 $159,639
4/10/2024           500,000 $536,575
4/11/2024           500,000 $542,100
4/12/2024           213,584 $236,206
4/15/2024           500,000 $556,705
Total Authorized $10,000,000
Remaining $6,405,014
% Completed 36%

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Duane Hope is a Partner at Capital 10X, he brings over 15 years of communications and research experience to the firm. His research and writing have appeared in publications for North American, European and Asian audiences.

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