Ecora Resources PLC (LSE:ECOR)(TSX:ECOR), the leading royalty company focused on supporting the supply of commodities essential to creating a sustainable future, issues a portfolio update following recent updates from the operators of key projects in Ecora’s royalty and stream portfolio.
Corporate
On 4 December, FTSE Russell announced that Ecora Resources will be included in the FTSE UK SmallCap Index and the FTSE UK All-Share Index. The change is expected to be applied after the close of business on Friday 20 December 2024 and will be effective on Monday 23 December 2024.
Producing Royalties
Voisey’s Bay (Operator: Vale)
On 3 December Voisey’s Bay (Operator: Vale), Vale Base Metals announced the completion of the Voisey’s Bay Mine Expansion Project. Ecora has a stream agreement which entitles it to receive 22.82%(1) of all cobalt production from the Voisey’s Bay mine.
The expansion project transitioned Voisey’s Bay operations from open pit to underground mining. This project involved the development of two underground mines – Reid Brook and Eastern Deeps – which will deliver concentrate for processing at Vale’s Long Harbour Processing Plant, one of the lowest emission nickel processing plants in the world. The project will produce 2.6 ktpa of cobalt on average over the life of the mine.
Ecora has received 196 tonnes (14 deliveries)(2) of cobalt YTD (H1 2024: 56 tonnes (4 deliveries)) and expects to receive a further 14 tonnes (1 delivery) before the end of the year. In 2025 the Group expects to receive between 280 and 392 tonnes of cobalt (20-28 deliveries) as production from the underground mine continues to ramp up, with guidance to be updated with the Group’s Q4 Trading Update.
Mantos Blancos (Operator: Capstone Copper Corp.)
On 31 October, Capstone Copper Corp, (“Capstone”) issued its Q3 results which included an update on the Mantos Blancos mine. Ecora holds a 1.525% Net Smelter Return royalty over Mantos Blancos. In July, a successful two-week planned shutdown was completed which included the installation of a new holding tank and additional pumps in the tailings area in order to address deficiencies identified as preventing the sustained achievement of the 20 ktpd throughput capacity from the sulphide operations.
Following a ramp up in August, ore throughput achieved 18,062 tpd through to the end of Q3, with the plant meeting or exceeding the nameplate capacity of 20,000 tpd on 23 operating days. The overall variability of the milling process has been significantly reduced and higher throughput is expected in Q4 and beyond.
Capstone continues to highlight the potential for a Phase II expansion at Mantos Blancos with a Feasibility Study, looking at increasing mill throughput to 27,000 tpd, expected by the end of 2025.
Capstone is also evaluating the opportunity to reprocess tailings via. existing and underutilised SX-EW capacity that could increase copper production by ~25 ktpa for 15 years with no additional mining or crushing costs.
Maracás Menchen (Operator: Largo Inc.)
On 26 November, Largo Inc, (“Largo”) announced that it has filed its National Instrument 43-101 technical report for the updated Life of Mine Plan (“LOMP”) and Pre-Feasibility Study (“PFS”) for its vanadium-titanium operation in Brazil. Ecora has a 2% Net Smelter Return royalty on all mineral products from the area of the mine to which the royalty interest relates.
The highlights of the LOMP and PFS include a 13-year increase in the reserve based mine life (out to 2054) and a 67% increase in Mineral Reserves.
Development Royalties
Piauí (Operator: Brazilian Nickel Limited)
On 9 December, Brazilian Nickel Limited (“BRN”) announced that it had received a letter of interest from the U.S. International Development Finance Corporation (“DFC”) that expressed DFC’s interest in providing the Piauí Nickel Project (“PNP”) with a loan facility of up to US$550 million, representing almost 40% of the PNP’s overall financing package. Ecora holds a 1.65% Gross Revenue Royalty over the PNP.
Nifty (Operator: Cyprium Metals Limited)
On 27 November, Cyprium Metals Limited (“Cyprium”) published a PFS for the Nifty Copper Mine Complex (“Nifty”) over which Ecora has a 1.5% Realised Value Royalty.
The PFS outlines two standalone brownfield processing plants with two distinct sources of ore that can be processed to produce copper products:
- the Initial Cathode Project includes the refurbishment of an existing solvent extraction and electrowinning (“SX-EW”) plant to a nameplate annual copper cathode production capacity of approx. 6 kt per annum. The PFS estimates the Initial Cathode Project will produce an annual average of 6 kt of copper over 4 years.
- the Copper Concentrate Project contemplates the restart of mining activities, with an existing concentrator plant to be refurbished and expanded to a nameplate annual ore feed capacity of 4.5 Mtpa. The Copper Concentrate Project is forecast to produce an annual average of 38.7 kt of copper during the initial 10 years of production, and an annual average of 35.1 kt of copper over an estimated 20-year Reserves based mine-life.
Amapá (Operator: Cadence Minerals plc)
On 3 December, Cadence Minerals plc (“Cadence”) announced an updated PFS on the Amapá Iron Ore Project (“Amapá”). Ecora holds a 1% Gross Revenue Royalty on Amapá.
Highlights of the PFS include a 73% increase in the post-tax Net Present Value to US$1.97 billion, with estimated gross revenue of US$9 billion over a 15-year mine life. The design of the processing plant has been revised to target production of 67.5% DR-grade iron ore concentrate at an average rate of 5.5 million metric tonnes per annum.
- Volumes quoted are those attributable to Ecora. Each delivery is 20 tonnes, 70% of which is attributable to Ecora.
- The Company is entitled to receive 22.82% of all cobalt production from Voisey’s Bay up until 7,600 tonnes of finished cobalt have been delivered, and 11.41% entitlement thereafter.
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