Ecora Resources PLC (LSE/TSX: ECOR) Today issued a portfolio update following the recent public market updates provided by the operators of key projects in Ecora’s royalty and stream portfolio.
The company continues to expect volume growth in 2024 at operations underlying its producing royalty portfolio which, at current commodity price levels, would imply year-on-year portfolio contribution growth. In addition, Ecora’s near-term development royalties are poised for significant de-risking events in the year ahead.
Producing Royalties
Voisey’s Bay (Operator: Vale)
Vale announced that the Voisey’s Bay underground project was more than 90% complete as of December 2023. Vale continues to anticipate ore mined at the underground Reid Brook and Eastern Deeps ore bodies to ramp-up during the course of 2024, with the Eastern Deeps main production start-up expected to occur in the second half of this year. Ecora continues to expect to receive between 12 and 16 deliveries of cobalt during 2024 (each delivery is 20 tonnes of which 70% is attributable to Ecora).
Mantos Blancos (Operator: Capstone Copper)
Production for the full year is forecast to be in line with Ecora’s expectations at 49-57kt. Capstone stated that during the first half of 2024 it intends to install the necessary equipment to remove bottlenecks between major components of the Mantos Blancos processing circuit. Following which Capstone expects the mine to operate at nameplate throughput rates of 7.3mtpa and subsequently intends to recommence studies related to Mantos Blancos Phase 2 expansion.
Iron Ore Company of Canada (Operator: Rio Tinto)
The Iron Ore Company of Canada (IOC) has been awarded C$18.1million from the Government of Canada’s Low Carbon Economy Fund to support the decarbonization of the production of iron ore concentrate and iron ore pellets. IOC’s cumulative greenhouse gas emissions are expected to be reduced by 9% over the life of the project.
Operator Production Guidance
1. Implied Kestrel 2024 production within Ecora’s private royalty area based on 2023 production volumes as per Ecora trading update issued on 31 January.
2. Mantos Blancos 2024 production guidance as per Capstone Copper Q4 2023 results announcement issued on 22 February 2024.
3. Voisey’s Bay 2024 cobalt deliveries as per Ecora trading update issued on 31 January. Ecora attributable interest of 70% of cobalt deliveries under the Voisey’s Bay stream.
4. Maracás Menchen 2024 production guidance as per Largo Resources FY 2023 Operational and Sales results announcement issued on 23 January 2024.
5. Cigar Lake 2024 production guidance as per Cameco 2023 Q4 results announcement issued on 8 February 2024.
6. Four Mile 2024 production guidance calculated with reference to 2022 and 2023 historical uranium production and sales volumes.
Development Portfolio
Santo Domingo (Operator: Capstone Copper)
Capstone is expecting to release an updated Santo Domingo Feasibility Study during the first half of 2024. The original 2018 Feasibility Study contemplated a stand–alone operation and will be updated to reflect synergies expected to arise from Capstone’s nearby Mantoverde mine where a brownfield expansion was completed at the end of 2023. Capstone is targeting a final investment decision to construct the Santo
Domingo project in H2 2025.
West Musgrave (Operator: BHP)
The West Musgrave project’s economics remain robust, with BHP stating that the operation could generate reasonable returns despite a weak nickel price environment and assuming lower forward prices for nickel. However, as BHP studies a potential move into care and maintenance for Nickel West, it will consider the merits of phasing the remaining West Musgrave construction capital expenditure. The West Musgrave project is currently 21% complete, and first copper and nickel production had previously been targeted between Q4 2025 and calendar year 2026
Piauí (Operator: Brazilian Nickel)
Brazilian Nickel Limited continues to progress construction financing workstreams, including debt and equity funding. Detailed engineering activities are underway, and the Brazilian Nickel project team has been expanded to include a Chief Sustainability Officer with over 25 years’ experience, most recently at Vale Base Metals, and Chief People Officer with 17 years of experience, much of it in the mining sector.
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