(“Ecora”, the “Company” or the “Group”) Full Year Results Ecora Resources PLC (LSE/TSX: ECOR , OTCQX: ECRAF ) announces full year results for the year
27 March 2025
Ecora Resources PLC
(“Ecora”, the “Company” or the “Group”)
Full Year Results
Ecora Resources PLC (LSE/TSX: ECOR , OTCQX: ECRAF ) announces full year results for the year
ended 31 December 2024. The Company will publish its audited 2024 Annual Report and Accounts
later today, which will be available on the Group's website at www.ecora -resources.com and on
SEDAR at www.SEDAR.com.
Ecora is a critical minerals focused royalty and streaming company. The Group has a base metal
weighted portfolio which combines near term production volume growth from its producing
royalty portfolio and a pipeline of development projects that is expected to drive material revenue
growth in the medium term.
Marc Bishop Lafleche, Chief Executive Officer, commented:
“Significant progress across Ecora’s royalty portfolio was achieved in 2024 with key highlights including
Mantos Blancos copper mine delivering periods of record production rates as well as the completion of
construction of the Voisey’s Bay underground mine with an ongoing ramp-up to steady state production
levels in 2026. This momentum is expected to carry through to 2025 with volume growth expected at the
operations underlying Ecora’s key producing royalties, with supportive copper and cobalt price tailwinds.
“Following the implementation of an updated capital allocation framework prioriti sing growth, the
acquisition of a royalty over the Phalaborwa project, estimated to be the lowest -cost advanced stage
rare earths project outside of China, and more recently of a copper stream over the low-cost producing
Mimbula copper mine represents tangible delivery of our strategy. Base metals exposure now represents
80% of Ecora’s estimated NAV with copper exposure at the core.
“We are well positioned for the year ahead and will continue to focus on further diversifying Ecora’s
short and medium -term revenue profile, supported by the expected meaningful balance sheet
deleveraging over the next 12-24 months.”
Financial Highlights:
• Portfolio contribution increased 9% to $63.2m (2023: $58.2m1)
• Royalty and metal stream-related revenue of $59.6m (2023: $61.9m)
• Profit before tax of $5.9m (2023: $4.5m)
• The Group recognised an impairment charge of $15.1m on the Voisey’s Bay cobalt
stream due to continued price weakness together with a deferred tax charge of $9.8m
related to tax losses which, based on year-end prices, would not be utilised in full
• Adjusted earnings of $28.9m (2023: $30.5m), and adjusted earnings per share of 11.43c
(2023: 11.82)
• Free cash flow of $22.1m (2023: $29.7m)
• Net debt as at 31 December 2024 of $82.3m (31 Dec 23: $74.5m)
• Completed a $10m share buyback primarily funded by recycling capital from LIORC share
sales
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• Second half dividend of 1.11c per share, bringing the total dividend for the year to 2.81c
per share (2023: 8.50c/share), in-line with updated capital allocation framework
Post-period End:
• On 27 February, the Group announced the acquisition of a copper stream on Moxico
Resources’ Mimbula copper mine for a total cash consideration of $50m. The transaction
cements copper at the core of Ecora’s commodity exposure and is expected to be
immediately accretive to earnings and free cash flow
• The Group negotiated an agreement with Whitehaven Coal Ltd under which the Group
received $6.2m as an acceleration of deferred consideration and certain outstanding
contingent consideration with respect to the sale of the Narrabri thermal coal royalty,
comprising of contingent consideration linked to coal prices, Narrabri sales volumes and
the successful permitting of the Narrabri South project
Portfolio Highlights:
• Voisey’s Bay underground mine expansion completed; Ecora received 210 tonnes of
attributable cobalt in 2024 (2023: 154 tonnes)
o average realised price of $13.34/lb (2023: $16.36/lb)
o portfolio contribution of $6.2m (2023: $5.6m)
• Kestrel saleable volumes mined within the Group’s royalty area of 2.1 Mt (2023: 1.6 Mt)
o average realised price of $223/t (2023: $238/t)
o portfolio contribution of $41.4m (2023: $35.9m)
• Mantos Blancos total payable copper production of 43.2 Kt (2023: 49.3 Kt)
o average realised price of $9,116/t (2023: $8,492/t)
o portfolio contribution of $5.8m (2023: $6.1m)
• Capstone published an updated Feasibility Study on the Santo Domingo copper project
which reinforced robust project economics
• BHP temporarily suspended construction of the West Musgrave nickel -copper project
with the decision to be reviewed by February 2027
• Acquired a royalty over the Phalaborwa rare earths project in South Africa, further
diversifying the development portfolio and commodity mix
• NexGen Energy announced a highly prospective uranium discovery in Patterson Corridor
East in the Athabasca uranium basin, Canada, which occurred in an area over which
Ecora holds a 2.0% NSR royalty
• The operator of the Four Mile uranium mine was selling borrowed inventory during H2
2024 and stockpiling produced uranium which resulted in no royalty payments in H2
2024; the operator has indicated sales will return to a normal sales schedule from the
beginning of FY 25 at normal levels of production
Outlook 2025:
• Meaningful volume growth forecast in 2025 driven by:
o Voisey’s Bay ramp up expected to lead to Ecora receiving between 335t – 390t of
cobalt in 2025; an increase of 60%-90% on 2024
o Capstone Copper guides copper production at Mantos Blancos of 49,000t-
59,000t; an increase of up to 20% on 2024
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o Saleable production volumes in the Group’s private royalty area of the Kestrel
steelmaking coal mine in 2025 expected to be between 2.2mt and 2.3mt; an
increase of 5%-10% on 2024
• Mimbula copper stream, acquired in February 2025, will provide an immediate source of
income growth with c. 15kt -20kt of copper production expected in 2025
• The Group’s cash flow is expected to support meaningful deleveraging over the next 12 -
24 months
• In February 2025, the government of the Democratic Republic of Congo announced a
four month export ban on cobalt, since then LME cobalt prices have increased by over
70%
Medium term outlook
• Producing volumes from critical minerals’ royalties are expected to see material growth
through a number of projects between now and the end of the decade:
o Voisey’s Bay cobalt volumes attributable to Ecora ramping up to steady state of
560t per annum from second half of 2026
o Mimbula brownfield expansion to a nameplate capacity of 56ktpa expected to be
achieved in mid-2026
o Capstone Copper evaluating two opportunities to increase Mantos Blancos
copper production:
▪ Phase II expansion study due in 2025, potential for additional 10ktpa
▪ Tailings reprocessing could add 25ktpa
o Capstone Copper preparing Santo Domingo copper project to be FID ready from
Q1 2026
o Brazilian Nickel continuing financing discussions for PiauÍ nickel-cobalt project
with a view to a project FID in 2026
o Rainbow Rare Earths progressing the Phalaborwa rare earths project, targeting
first producing in 2027
o Cyprium Metals 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 38.7ktpa of copper over an
estimated 20-year reserve-based mine life
12023 numbers exclude $5.4m of accrued income released to the income statement following the favourable Four Mile judgment
announced on 4 December 2023.
Analyst and investor presentation and call
A live webcast of the presentation including Q&A will be held today at 2:00 pm GMT for investors
and analysts and will be available via our website at www.ecora-resources.com or on
https://brrmedia.news/ECOR_FY_24.
This will be available for playback after the event.
Please join the event 5-10 minutes prior to the scheduled start time.
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Event Title Ecora Resources – 2024 Results Presentation
Time Zone Dublin, Edinburgh, Lisbon, London
Start Time/Date 2pm (GMT)
Duration
Webcast Link
Dial in details:
60 minutes
https://brrmedia.news/ECOR_FY_24
USA Local: +1 786 697 3501
Canada Toll Free: 1 866 378 3566
UK: +44 (0) 33 0551 0200
Password: EcoraFY24
For further information
Ecora Resources PLC +44 (0) 20 3435 7400
Geoff Callow Head of Investor Relations
Website : www.ecora-resources.com
FTI Consulting
Sara Powell / Ben Brewerton / Nick Hennis / Lucy Wigney
+44(0) 20 3727 1000
Notes to Editors:
The financial information set out in this Results Announcement does not constitute the Company’s annual report and accounts
for the years ended 31 December 202 3 or 2024 but is derived from those accounts. The auditors have reported on those
accounts; their reports were unqualified and did not draw attention to any matters by way of emphasis without qualifying their
report.
Alternative performance measures
Throughout this report a number of financial measures are used to assess the Group’s performance. The measures are defined
below and are non-IFRS measures because they exclude amounts that are included in, or include amounts that are excluded
from, the most directly comparable measure calculated and presented in accordance with IFRS, or are calculated using financial
measures that are not calculated in accordance with IFRS. The non -IFRS measures may not be comparable to other similarly
titled measures used by other companies and have limitations as analytical tools and should not be considered in isolation or
as a substitute for analysis of the Group’s operating results as reported under IFRS. The Group does not regard these non-IFRS
measures as a substitute for, or superior to, the equivalent measures calculated and presented in accordance with IFRS or those
calculated using financial measures that are calculated in accordance with IFRS.
Portfolio contribution
Portfolio contribution reflects the underlying performance of the Group’s assets both in terms of those already in production
and the timing of the Group’s development royalties coming into production. Portfolio contribution is royalty and stream-related
revenue plus royalties received or receivable from royalty financial instruments carried at fair value through profit or loss (FVTPL)
and principal repayment received under the Denison financing agreement less metal stream cost of sales.
Operating profit
Operating profit represents the Group’s underlying operating performance from its royalty and stream interests. Operating
profit is royalty and metal stream related revenue, less metal stream cost of sales, amortisation and depletion of royalties and
streams, operating expenses, and excludes impairments and revaluations. Operating profit reconciles to ‘operating profit
before impairments and revaluations’ in the income statement.
Adjusted EBITDA
Adjusted EBITDA is a defined term in the Group’s revolving credit facility and used to determine the Group’s leverage ratio and
interest cover ratio. Adjusted EBITDA is portfolio contribution, less operating expenses excluding share based payments.
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Adjusted earnings
Adjusted earnings represents the Group’s underlying operating performance from core activities. Adjusted earnings is the profit
attributable to equity holders, plus royalties received from royalty financial instruments carried at fair value through profi t or
loss, less all valuation movements and impairments (which are non -cash adjustments that arise primarily due to changes in
commodity prices), together with amortisation charges, foreign exchange gains/(losses), any associated deferred tax and
any profit or loss on non -core asset disposals. Adjusted earnings divided by the weighted avera ge number of shares in issue
gives adjusted earnings per share.
Free cash flow per share
Free cash flow is net cash generated from operating activities, plus principal repayments received under commodity related
financing agreements, proceeds from the disposal of mining and exploration interests and finance income, less finance costs
and lease payments, divided by the weighted average number of shares in issue.
Net debt
Net debt is calculated as total borrowings less cash and cash equivalents.
Cautionary statement on forward-looking statements and related information
Certain statements in this announcement, other than statements of historical fact, are forward-looking statements based on certain assumptions
and reflect the Group's expectations and views of future events. Forward -looking statements (which include the phrase 'forward -looking
information' within the meaning of Canadian securities legislation) are provided for the purposes of assisting readers in understanding the Group's
financial position and results of operations as at and for the periods ended on certain dates, and of presenting information about management's
current expectations and plans relating to the future. Readers are cautioned that such forward-looking statements may not be appropriate other
than for purposes outlined in this announcement. These statements may include, without limitation, statements regarding the o perations,
business, financial condition, expected financial results, cash flow, requirem ent for and terms of additional financing, performance, prospects,
opportunities, priorities, targets, goals, objectives, strategies, growth and outlook of the Group including the outlook for the markets and
economies in which the Group operates, costs and timing of acquiring new royalties and making new investments, mineral reserve and resources
estimates, estimates of future production, production costs and revenue, future demand for and prices of precious and base me tals and other
commodities, for the current fiscal year and subsequent periods.
Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include
words such as 'expects', 'anticipates', 'plans', 'believes', 'estimates', 'seeks', 'intends', 'targets', 'projects', 'forecasts', or negative versions thereof and
other similar expressions, or future or conditional verbs such as 'may', 'will', ‘aims’, 'should', 'would' and 'could'. These include statements regarding
our intentions, beliefs or current expectations concerning, amongst other things, our results of operations, financial condition, liquidity, prospects,
growth, strategies and the economic and business circumstances occurring from time to time in the countries and markets in wh ich the Group
operates.
Forward-looking statements are based upon certain material factors that were applied in drawing a conclusion or making a forecast or projection,
including assumptions and analyses made by the Group in light of its experience and perception of historical tr ends, current conditions and
expected future developments, as well as other factors that are believed to be appropriate in the circumstances. The material factors and
assumptions upon which such forward-looking statements are based include: the stability of the global economy; the stability of local governments
and legislative background; the relative stability of interest rates; the equity and debt markets continuing to provide acces s to capital; the
continuing of ongoing operations of the properties under lying the Group's portfolio of royalties, streams and investments by the owners or
operators of such properties in a manner consistent with past practice; and/or with production projections, including the on-going financial viability
of such operators and operations; the accuracy of public statements and disclosures (including feasibility studies, estimates of reserve, resource,
production, grades, mine life and cash cost) made by the owners or operators of such underlying properties; contractual terms honoured of the
Group’s royalty and stream investments, together with those of the owners and operators of the underlying properties ; the accuracy of the
information provided to the Group by the owners and operators of such underlying properties; contractual terms honoured of the Group’s royalty
and stream investments, together with those of the owners and operators of the underlying properties ; no material adverse change in the price
of the commodities produced from the properties underlying the Group's portfolio of royalties, streams and investments; no material adverse
change in foreign exchange exposure; no adverse development in respect of any significant property in which the Group holds a royalty or other
interest, including but not limited to unusu al or unexpected geological formations and natural disasters; successful completion of new
development projects; planned expansions or additional projects being within the timelines anticipated and at anticipated pro duction levels; and
maintenance of mining title.
Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions, which could cause actual
results to differ materially from those anticipated, estimated or intended in the forward -looking statements. Pas t performance is no guide to
future performance and persons needing advice should consult an independent financial adviser. No statement in this communication is intended
to be, nor should it be construed as, a profit forecast or a profit estimate.
By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility
that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate; that assumptions may not be correct and that
objectives, strategic goals and priorities will not be achieved.
A variety of material factors, many of which are beyond the Group's control, affect the operations, performance and results o f the Group, its
businesses and investments, and could cause actual results to differ materially from those suggested by any forwar d-looking information. Such
risks and uncertainties include, but are not limited to current global financial conditions, royalty, stream and investment p ortfolio and associated
risk, adverse development risk, financial viability and operational effectivene ss of owners and operators of the relevant properties underlying
the Group's portfolio of royalties, streams and investments; royalties, streams and investments subject to other rights, and contractual terms
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not being honoured, together with those risks identified in the 'Principal Risks ’ and ‘Emerging Risks’ sections of our most recent Annual Report,
which is available on our website. If any such risks actually occur, they could materially adversely affect the Group's busin ess, financial condition
or results of operations. Readers are cautioned that the list of factor s noted in the sections herein entitled 'risk management', ‘emerging risks’
and ‘principal risks’ are not exhaustive of the factors that may affect the Group's forward-looking statements. Readers are also cautioned to
consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward -looking statements,
which speak only as of the date hereof.
The Group's management relies upon this forward-looking information in its estimates, projections, plans and analysis. Although the forward -
looking statements contained in this announcement are based upon what the Group believes are reasonable assumptions, there can be no
assurance that actual results will be consistent with these forward -looking statements. The forward-looking statements made in this
announcement relate only to events or information as of the date on which the statements are made and, except as specifically required by
applicable laws, listing rules and other regulations, the Group undertakes no obligation to update or revise publicly any for ward-looking
statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect
the occurrence of unanticipated events.
This announcement also contains forward-looking information contained and derived from publicly available information regarding properties
and mining operations owned by third parties. This announcement contains information and statements relating to the K estrel mine that are
based on certain estimates and forecasts that have been provided to the Group by Kestrel Coal Pty Ltd ("KCPL"), the accuracy of which KCPL
does not warrant and on which readers may not rely.
Technical and Third-Party Information
As a royalty and streaming company, the Group often has limited, if any, access to non-public scientific and technical information in respect of the
properties underlying its portfolio of royalties, or such information is subject to confidentiality provisions. As such, in preparing this announcement,
the Group has largely relied upon the public disclosures of the owners and operators of the properties underlying its portfol io of royalties
investments, as available at the date of this announcement. According ly, no representation or warranty, express or implied, is made and no
reliance should be placed, on the fairness, accuracy, correctness, completeness or reliability of that data, and such data in volves risks and
uncertainties and is subject to change based on various factors.
Chief Executive’s Review
As we reflect on 2024, Ecora’s diversified portfolio demonstrated strong performance amidst
continued global macroeconomic weakness driven by i nflationary pressures and contractionary
monetary policies demonstrating the benefits of a royalty company in an uncertain world. Ecora’s
producing royalty portfolio’s strong results were driven by volume growth at Kestrel, Voisey’s Bay
and Mantos Blancos, momentum we expect to continue into 2025.
In terms of our development portfolio, a key positive was the Santo Domingo copper project
progressing towards a Final Investment Decision. BHP’s decision to suspend construction of the
West Musgrave nickel -copper project was disappointing, reflecting curr ently challenging nickel
market conditions; however we remain confident in the project's potential as a low cost operation
over a 25-year mine life with the possibility of further extension.
Our strategy is to unlock shareholder value by continuing to grow and diversify our portfolio of
critical mineral royalties. Twelve months following the implementation of an updated capital
allocation framework prioritising growth, we are pleased to have a cquired a royalty over the
Phalaborwa Rare Earths Project and, more recently, a copper stream over the producing Mimbula
mine.
The past year has been difficult for UK equity markets and the global small cap resource sector .
2024 marked the second consecutive year of net capital outflows from UK -focused equity funds,
impacting the sector and Ecora’s share price. Ecora is not alone in this respect, and in many ways
the backdrop for many small and mid-cap operators has created demand for alternative, and less
dilutive, forms of financing, which includes royalties and streams.
We anticipate that the favourable window to further diversify and grow our portfolio by acquiring
royalties over high quality mining operations and projects will persist in the short term, as
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demonstrated by our recent Phalaborwa rare earths royalty and Mimbula copper stream
transactions. Both transactions were originated through our industry network.
Results
The producing portfolio generated a contribution of $63.2m in 2024, up 9% year on year on a
recurring basis (excluding 2023 income related to prior years) . The key royalties and streams
underpinning this growth were Kestrel, Voisey’s Bay and Mantos Blancos. With cobalt prices at
year end approaching 50 -year lows (in real terms) , the Group impaired the value of the Voisey’s
Bay stream by $15.1m and the associated deferred tax asset by $9.8m. Adjusted earnings per
share was broadly flat at US11.43c/share (2023: US11.82c/share). Net debt increased to $82.3m
(2023: $74.5m), reflecting acquisitions made during the year as well as final deferred payments
related to royalty acquisitions made in 2022.
Industry drivers
The long -term demand outlook for critical minerals remains strong, driven by continued
urbanisation, growth in the electrification of energy consumption and energy storage, as well as
expected growth in digital infrastructure and the adoption of consumer and business artificial
intelligence services.
2024 saw a number of supply side developments impacting global commodity markets, including
sizable supply additions of nickel, cobalt and lithium. The supply of nickel products from mining
operations located in Indonesia, and cobalt products from operations located in the Democratic
Republic of Congo ramped up substantially in 2024, suppressing the prices of these commodities.
This overshadowed otherwise healthy year-on-year demand growth for nickel and cobalt,
estimated at 5% and 7% respectively.
In response, the Democratic Republic of Congo recently imposed a four-month cobalt export ban
to stabilise cobalt prices, with subsequent export quotas under consideration. This has driven a
price uplift of over 60%, with the medium and longer-term impact to be determined.
In the past year, vertical integration in battery commodities such as lithium and cobalt appears to
have reduced certain producers’ emphasis on capturing margins at the upstream mining stage.
This is particularly evident in cobalt and lithium, where some producers have inte grated raw
material sourcing alongside battery production and EV manufacturing, and appear less sensitive
to upstream commodity price levels
2024 saw a continuation of governments adopting policies to aid the development of critical
mineral supply chains, largely driven by national security concerns, economic independence and
geopolitical competition. Policies have taken a variety of forms including direct and indirect state
investment and tax incentives. We have also seen instances of governments weaponi sing their
control over critical mineral supply chains, although to date these policies ha ve been relatively
restrained.
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Outlook
In the upcoming year, our producing royalty portfolio is expected to benefit from strong volume
growth, at the front end of an expected five -year period of strong organic growth. Ecora’s longer
dated development stage royalties provide further growth poten tial into the next decade and
beyond.
Cash flows generated by Ecora’s producing royalty portfolio are expected to drive material debt
reduction over the next 12-24 months.
The Mimbula copper stream, acquired in Q1 2025, further enhances Ecora’s short and medium -
term growth profile, with a brownfield Phase II expansion to increase production from 14 ktpa in
2024 to 56ktpa underway.
Ecora’s reshaped critical minerals royalty portfolio, with copper exposure at its core, is
approaching an inflection point and we look to the future with confidence.