REG - Ecora Resources PLC - Full Year Results
27/03/2025 07:15
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RNS Number : 4672C Ecora Resources PLC 27 March 2025
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
(http://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
prioritising 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: $58.2m(1))
· 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
· 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
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
(1)2023 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 (http://www.ecora-resources.com) or on
https://brrmedia.news/ECOR_FY_24 (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.
Event Title Ecora Resources - 2024 Results Presentation
Time Zone Dublin, Edinburgh, Lisbon, London
Start Time/Date 2pm (GMT)
Duration 60 minutes
Webcast Link https://brrmedia.news/ECOR_FY_24 (https://brrmedia.news/ECOR_FY_24)
Dial in details: 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.e (http://www.ecora-resources.com) cora-resources.
(http://www.ecora-resources.com) com (http://www.ecora-resources.com)
FTI Consulting +44(0) 20 3727 1000
Sara Powell / Ben Brewerton / Nick Hennis / Lucy Wigney ecoraresources@fticonsulting.com (mailto:ecoraresources@fticonsulting.com)
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 2023 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.
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 profit 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
average 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 operations, business, financial condition, expected financial
results, cash flow, requirement 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 metals 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 which 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 trends, 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 access to capital; the continuing of ongoing operations of the
properties underlying 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 unusual 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 production 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. Past 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 of the Group, its businesses
and investments, and could cause actual results to differ materially from
those suggested by any forward-looking information. Such risks and
uncertainties include, but are not limited to current global financial
conditions, royalty, stream and investment portfolio and associated risk,
adverse development risk, financial viability and operational effectiveness 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 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 business, financial condition or results of operations.
Readers are cautioned that the list of factors 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
forward-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 Kestrel 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 portfolio of royalties
investments, as available at the date of this announcement. Accordingly, 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 involves 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
inflationary 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 currently 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 acquired 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 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 integrated 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
weaponising their control over critical mineral supply chains, although to
date these policies have been relatively restrained.
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 potential 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 14ktpa 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.
Review of Operations
Base Metals
Producing
Ecora's three producing base metal royalties, Voisey's Bay (cobalt), Mantos
Blancos and Carlota (both copper), generated a total of $12.6m of portfolio
contribution.
The completion of the Voisey's Bay Underground Mine Expansion project in
December 2024 was a significant milestone in advance of a sizeable ramp up in
cobalt production from underground mining operations. Ecora received 210
tonnes of cobalt during 2024 at an average realised price of $13.34/lb. This
resulted in net portfolio contribution of $5.0m. Cobalt volumes in the second
half were nearly three times those in the first half (154 tonnes v 56 tonnes).
This trend is expected to continue in 2025, with year-on-year volumes growth
expected at 60-90% (2025 guidance of 335-390 tonnes). Further growth is
expected as the mine moves towards steady state production which should result
in the Group receiving an average of 560 tonnes of cobalt per annum from H2
2026.
Mantos Blancos successfully completed the concentrator debottlenecking project
in H2 2024, achieving concentrator throughput rates of 20,000tpd. Operations
in November and December 2024 averaged above this rate, a marked increase from
the full year 2024 average of c.16,000tpd and c.14,500tpd in 2023. Total
payable copper production in 2024 was 43.2kt, generating $5.8m of portfolio
contribution, including a record quarterly portfolio contribution in Q4 of
$1.7m. The operation is positioned to achieve record annual production levels
in 2025, with Capstone guiding annual production of 49-59kt of copper.
Following the end of the accounting period, Ecora acquired a copper stream
over the producing Mimbula copper mine. The acquisition is expected to be
immediately accretive to both adjusted earnings and cash flow per share. A
brownfield expansion is underway which will increase copper production from
approximately 14ktpa in 2024 to steady state capacity of 56ktpa in mid-2026.
Development
The majority of the Group's key development royalties are over copper and
nickel projects. These are expected to be the engine of growth over the next
five years. By 2030, over 80% of the Group's portfolio contribution is
expected to be generated from base metal royalty and stream entitlements, up
from 20% in 2024.
In July, Capstone Copper published an updated Santo Domingo Feasibility Study,
confirming the project as one of the leading, fully permitted greenfield
copper projects in the Americas. Capstone is progressing towards a final
investment decision, which could take place in early 2026, and is in the
process of identifying potential funding partners. Throughout 2025, further
optimisation and exploration work is set to continue, with Capstone
highlighting the potential to treat oxide material at their nearby Mantoverde.
Additionally, a study to assess the viability of producing cobalt at site is
planned for 2026, potentially adding a valuable by-product credit alongside
iron and gold.
The decision taken by BHP to temporarily suspend the construction of the West
Musgrave nickel-copper project was disappointing, especially as the project
was over 21% constructed at the time. This decision was taken in response to a
weak nickel price environment caused by increased supply from operations
located in Indonesia. BHP has stated that West Musgrave remains a high-quality
project and has communicated to the market that it will review the decision by
February 2027. The pause in construction has delayed first royalty payments to
Ecora, but as a fully permitted, partially constructed asset, West Musgrave
remains well positioned to rapidly advance into operations once nickel market
conditions improve.
During 2024, Brazilian Nickel advanced construction financing discussions,
while also incorporating the learnings from the small-scale plant to optimise
the Piaui process flow sheet. In December, Brazilian Nickel announced that it
had received a letter of interest from the U.S. International Development
Finance Corporation (DFC) regarding a loan facility of up to $550m. Brazilian
Nickel will continue discussions with potential financing partners during
2025, with a final investment decision to proceed with the construction of the
Piaui project expected after 2026.
In November 2024, Cyprium Metals published a Pre-Feasibility Study (PFS) for
the Nifty copper project, outlining two standalone brownfield processing
plants with two distinct sources of ore that can be processed to produce
copper products. The first is an Initial Cathode Project which will produce an
annual average of 6kt of copper over 4 years. The second is a copper
concentrate project forecast to produce an annual average of 38.7kt of copper
during the initial 10 years of production, and an annual average of 35.1kt of
copper over an estimated 20-year Reserves based mine-life.
Los Andes Copper completed a number of surveys related to the Vizcachitas
project during 2024. It also accelerated its community engagement activities
in order to secure and maintain its licence to operate. In 2025, Los Andes
Copper will be seeking to complete Baseline Studies for the Feasibility Study,
and is planning to complete environmental permitting workstreams prior to
2028.
Specialty Metals & Uranium
Producing
Ecora's specialty metals and uranium royalties generated a total of $8.1m in
2024 (2023: $14.0m), consisting of royalty entitlements at the Maracás
Menchen vanadium mine ($2.2m), and uranium exposure through Four Mile ($1.4m)
and the McClean Lake mill ($4.5m).
The McClean Lake mill processes feedstock from Cameco's Cigar Lake uranium
mine, with Ecora entitled to a portion of the McClean Lake Mill toll milling
generated from the treatment of uranium ore produced by the Cigar Lake mine.
Cigar Lake produced 17Mlbs of uranium during 2024, with toll milling receipts
attributable to Ecora totalling $4.5m. Cameco, the majority owner of the Cigar
Lake mine, has guided to 2025 Cigar Lake production of 18Mlbs.
For part of 2024, the operator of the Four Mile uranium mine was selling
borrowed inventory and stockpiling produced uranium, which resulted in no
payable royalties in the second half of the year compared to $1.4m during the
first half of the year. We understand that a normal scales schedule is
expected from the beginning of 2025, in respect of which Ecora's royalty
should be payable.
The Maracás Menchen mine produced 9.3kt of vanadium pentoxide in 2024, with
vanadium pentoxide equivalent sales of 8.9kt (2023: 9.0kt). In November 2024,
an updated Maracás Menchen Life of Mine Plan and Pre-Feasibility Study was
released, detailing a 13-year increase to the Reserve based mine life and a
67% increase in Mineral Reserves.
Development
In July, Ecora acquired a royalty over the Phalaborwa rare earths project,
located in South Africa and operated by Rainbow Rare Earths. Phalaborwa is
among the lowest cost rare earth projects globally with a 16-year estimated
mine life. It is a brownfield project set to treat phosphogypsum stacks
generated as a by-product of historical fertiliser production, which means
there is no primary mining. These characteristics mean it is a low-cost and
low environmental impact project that can generate strong cashflows throughout
the commodity cycle.
In September, Rainbow announced a 15% increase in the Mineral Resource
Estimate for Phalaborwa, taking the total resource tonnage to 35.0Mt and
increasing the project life by two years. In December, it released an Interim
Economic Study confirming the Phalaborwa rare earths project as one of the
highest margin rare earths projects globally outside of China.
Rainbow is currently preparing a Definitive Feasibility Study for the project
following which financing and construction are expected to commence. The
project has been identified by the U.S. Government as an important contributor
to rare earth element supply chain independence, with the DFC's right to
invest $50m for the construction of Phalaborwa, via TechMet.
NexGen Energy completed its 2024 drilling programme at the Paterson Corridor
East project in the Athabasca Basin, Canada, establishing a substantial 600m
strike and 600m depth uranium zone only 3.5km from the flagship world-class
Arrow deposit. Paterson Corridor East sits within the area where Ecora holds a
2% NSR royalty. NexGen has commenced its 2025 exploration drill programme to
test the extent and growth of mineralisation at Patterson Corridor East.
Bulks & Other
Producing
Production from the Group's private royalty area within the Kestrel steel
making coal mine was up 31% at 2.1Mt (2023: 1.6Mt), with the Group realizing
an average price of $223/t (2023: $238/t). This drove a portfolio contribution
of $41.4m (2023: $35.9m). During 2025, Kestrel mining operations within the
Group's royalty area are expected to be heavily weighed to the second and
third quarters, with volumes for the full year subject to the Ecora royalty
expected to be up 5-10% versus 2024.
The EVBC gold mine benefited from a higher gold price environment during 2024
resulting in a portfolio contribution of $1.8m (2023: $0.7m).
Finance Review
Volumes at Kestrel and Voisey's Bay increased significantly in 2024,
in line with expectations, as production returned to the Group's private
royalty lands at Kestrel in the first half of the year, and Vale completed the
Voisey's Bay mine expansion project which saw a subsequent ramp-up of
underground operations in the second half of the year.
While Kestrel volumes increased from 1.6Mt to 2.1Mt and Voisey's Bay
attributable cobalt increased from 154 tonnes to 210 tonnes in 2024, softer
prices for both steelmaking coal and cobalt throughout the year partially
offset the impact of higher volumes. This resulted in portfolio contribution
of $63.2m in the year, in line with the $63.6m reported in 2023. On a like
for like basis, portfolio contribution year on year increased by 9% when
taking into account that portfolio contribution in FY23 included $5.4m
received from Four Mile relating to underpaid royalties between 2014 and 2021.
Kestrel volumes are expected to be 5%-10% higher than 2024, with production
expected to be weighted toward Q2 and Q3 2025.
Following completion of the Voisey's Bay underground mine expansion,
attributable cobalt volumes in 2025 are expected to increase to between 335
tonnes and 390 tonnes. The cobalt price weakened significantly during the
course of 2024 resulting in an impairment charge of $15.1m in relation to the
stream asset, together with a $9.8m deferred tax charge relating to carry
forward tax losses which, based on the price outlook at as of the balance
sheet date, are expected to remain unutilised at the end of the life mine. The
impairment charge relates solely to the price outlook forecast at the balance
sheet date, and does not reflect the recent surprise announcement by the
Government of the DRC of an at least four-month ban on all cobalt exports,
with the ban to be reviewed in three months.
Mantos Blancos achieved record copper production in Q4 2024 following the
successful completion, in Q3 of a de-bottlenecking project. Capstone's Mantos
Blancos 2025 copper production guidance is of 49kt-59kt (2024: 44.5kt).
The Group remained active in FY24, deploying $10.0m to acquire a 0.85% gross
revenue royalty over the Phalaborwa Rare Earths Project in South Africa for
$8.5m, alongside a $1.5m equity investment in Rainbow Rare Earths Limited, the
majority owner of the Phalaborwa project. This investment marked the Group's
first source of rare earths exposure, aligned with our strategy to diversify
and grow the portfolio of critical mineral royalties and streams.
Subsequent to the year end, the Group announced the completion of a $50.0m
copper stream on the producing Mimbula copper mine in Zambia operated by
Moxico Resources. In conjunction with this transaction, our existing lenders
once again demonstrated their support by agreeing to increase, amend and
extend the existing facility. As a result, total commitments under the
facility have increased by $30.0m to $180.0m whilst extending the maturity of
the facility by 12 months to January 2028. In addition, the Group retains an
uncommitted accordion feature of up to an additional $45.0m, together with the
option to extend the facility's maturity by a further 12 months, subject to
lender consent. The amendment and extension of the facility provide the Group
with the financial flexibility to pursue the various growth opportunities we
are currently seeing and expect to continue to see in 2025 and beyond.
The ongoing support from our lenders, who are amongst the largest lenders to
the royalty and mining sector, is a strong endorsement of the quality of
Ecora's royalty portfolio.
With volume growth expected across the portfolio in FY25, we were comfortable
to increase the Group's near-term leverage to finance the Mimbula acquisition.
Deleveraging is a key focus area, and we have already undertaken some
portfolio initiatives to commence this process. We entered into an agreement
with Whitehaven Coal in February 2025 to expedite payments due under the
Narrabri sale agreement resulting in the receipt of a $6.2m payment against
all outstanding deferred and contingent payments between now and 31 December
2026.
Results
The Group's portfolio contribution was in line with the previous period at
$63.2m (2023: $63.6m). On a like for like basis, portfolio contribution
increased 9% year on year. This excludes the impact of $5.4m in previously
underpaid royalties from Four Mile that were released to the income statement
in 2023, after the original judgement in the Supreme Court of Western
Australia in favour of the Group was upheld on appeal.
2024 2023
$m $m YoY%
Kestrel 41.4 35.9 15%
Voisey's Bay 6.2 5.6 10%
Mantos Blancos 5.8 6.1 (5%)
Maracás Menchen 2.2 3.1 (29%)
Four Mile 1.4 6.8((1)) (80%)
Carlota 0.6 0.6 -
Royalty and stream income 57.6 58.1 (1%)
Dividends - LIORC & Flowstream 0.5 2.0 (75%)
Interest - McClean Lake 1.5 1.8 (17%)
Royalty and stream related revenue 59.6 61.9 (4%)
EVBC 1.8 0.7 157%
Principal repayment - McClean Lake 3.0 2.3 30%
Less:
Metal streams cost of sales (1.2) (1.3) (9%)
Total portfolio contribution 63.2 63.6 (1%)
((1)) includes $5.4m of unpaid royalties from 2014 to 2021 released to the
income statement following the favourable judgement of the Supreme Court of
Western Australia, being upheld on appeal in December 2023
In line with expectations, production at Kestrel within the Group's royalty
area was heavily weighted to the first half of 2024. Total private royalty
volumes increased by 31% year on year, to 2.1Mt in 2024 (2023: 1.6Mt),
slightly above the upper end of the Group's full year guidance. The benefit of
the increase in volumes was partially offset by softer steelmaking coal prices
of $223/t (2023: $238/t) which resulted in an applicable royalty rate of
19.09% (2023: 21.23%) and a net increase in Kestrel royalties of 15% to $41.4m
(2023: $35.9m).
The Voisey's Bay mine expansion project was completed in the second half of
the year, resulting in a 36% increase in cobalt deliveries to 15 in 2024
(2023: 11) and an increase in net contribution from $4.3m in 2023 to $5.0m in
2024. Like Kestrel, the increased volumes were partially offset by lower
realised prices of $13.3/lb (2023: $16.4/lb) due to continued oversupply from
the DRC throughout 2024 and an increase in standard grade deliveries in Q3
2024 during the transition to underground mining activities.
Mantos Blancos was largely in line with the previous year at $5.8m despite
lower volumes in the period. The Group is expecting to see higher volumes in
FY25 following the successful ramp-up of operations in H2 24 as a result of
the completion of the de-bottlenecking project. Already, this has seen Mantos
Blancos achieve monthly production records at the end of 2024, with momentum
continuing into 2025. The outlook for copper also remains favourable, with
further copper income expected in FY 25 following the Mimbula stream
acquisition. Copper now accounts for approximately 50% of the Group's net
asset value.
We were pleased to see sales returning at Four Mile at the end of 2024
following a period of approximately six months during the year where the
operator was stockpiling production from the operation. The operator has
indicated sales will return to a normal sales schedule from the beginning of
FY25 at normal levels of production.
Elsewhere, volumes at Maracás Menchen were in line with guidance. The
Group's royalty was impacted by weaker vanadium prices which averaged $6.62/lb
throughout 2024 (2023: $9.21/lb) as a result of oversupply in Asia and Europe.
Conversely the significant increase in the underlying gold price has resulted
in the contribution from EVBC royalty increasing to $1.8m (2023: $0.7m)
despite volumes decreasing by 17% to 36,126oz (2023: 43,542oz).
The following table outlines some commentary on the key royalties in the
period.
Kestrel
$41.4m vs $35.9m ~30% increase in volumes to 2.1Mt (2023: 1.6Mt) as production moved back
inside the Group's private royalty lands
Realised steelmaking coal prices decreased to $223/t (2023: $238/t)
Royalty rate decreased to 19.09% (2023: 21.23%) in response to lower pricing
FY25: expect an increase of 5%-10% on the Ecora volumes achieved in 2024, with
volumes weighted to Q2 and Q3 2025
Voisey's Bay
$6.2m vs $5.6m 210 tonnes of attributable cobalt in 2024 (2023: 154 tonnes)
Realised cobalt price decreased to $13.34/lbs (2023: $16.36/lbs)
FY25: expect 335t - 390t of attributable cobalt, as ramp up of underground
mine continues with nameplate capacity expected to be achieved in H2 2026
Mantos Blancos
$5.8m vs $6.1m Total payable copper production decreased to 43.2Kt in 2024 (2022: 49.3Kt)
primarily due to lower cathode production due to lower dump throughput which
has now been addressed
Realised copper price increased to $9,116/t (2023: $8,492/t)
FY25: Capstone Copper guidance indicates total copper production in the range
of 49,000t - 59,000t, after achieving record Q4 2024 production volumes
following the successful completion of a project to increase throughput
Maracás Menchen
$2.2m vs $3.1m Sales volumes flat in 2024 at 8,900t (2023: 9,000t)
Realised vanadium price was impacted by oversupply in Asia and Europe
decreasing to $6.62/lbs (2023: $9.21/lbs)
2024 production was impacted by lower ore grades and scheduled maintenance
FY25: Largo guidance indicates sales in the range of 7,500t - 9,500t
Four Mile
$1.4m vs $6.8m Sales volumes decreased in 2024 to 1.9Mlbs (2023: 5.0Mlbs) reflecting a
build-up of inventory by operator
Realised uranium price increased to $75.01/lbs (2023: $50.88/lbs)
2023 contribution included $5.4m in previously underpaid royalties, following
the original judgement of Supreme Court of Western Australia in favour of the
Group being upheld on appeal
FY25: Volumes are expected to return to an average run rate of 5.0Mlbs in line
with annual production
Carlota
$0.6m vs $0.6m Sales volumes flat in 2024 at 3.0Mlbs (2023: 3.2Mlbs)
Realised copper price increased to $9,458/t (2023: $8,466/t)
FY25: expect volumes to decrease by ~20% compared to 2024, as mining progress
towards the end of the mine life in 2028
Dividends
$0.5m vs $2.0m Decrease in dividends reflects the partial disposal of ~95% of the Group's
holding in LIORC between Q4 2023 and Q2 2024
Flowstream dividends remained flat at $0.2m (2023: $0.3m)
Taking this portfolio contribution analysis, and allowing for operating,
finance costs and tax, the following table outlines the Group's adjusted
earnings for 2024.
2024 2023
$m % $m
Royalty related revenue 59.6 (4%) 61.9
EVBC royalties 1.8 157% 0.7
Metal streams cost of sales (1.2) (9%) (1.3)
Operating expenses (11.0) 1% (10.9)
Finance costs (8.9) 7% (8.3)
Finance income 0.3 (67%) 0.9
Other income/(losses) - (100%) 1.6
Tax (11.7) (17%) (14.1)
Adjusted earnings 28.9 (5%) 30.5
Weighted average number of shares ('000) 252,398 257,896
Adjusted earnings per share 11.43c (3%) 11.82c
The Group's operating expenses have remained flat at $11.0m (2023: $10.9m)
despite ongoing global rates of inflation.
The Group's borrowings have increased from $82.4m at 31 December 2023 to
$90.2m at 31 December 2024. This reflects the $9.2m paid during Q1 2024 in
deferred consideration relating to the South32 portfolio acquired in 2022, as
well as the final tax payments relating to the year ended 31 December 2023,
made at the end of Q2 2024 when the Group's borrowings peaked at $99.0m,
before some deleveraging in the second half of the year. The increase in
borrowings has resulted in a corresponding increase in the Group's finance
costs for the year.
As a result of all of the above and including the contribution from EVBC, the
Group generated adjusted earnings for the year of $28.9m (2023: $30.5m) and
adjusted earnings per share of 11.43c (2023: 11.82c). Recognising valuation
movements, amortisation, impairments (see below relating to Voisey's Bay) and
the tax effect of these items, the Group generated a loss after tax for the
year ended 31 December 2024 of $9.8m (2023: profit $0.8m) and a basic loss per
share of 3.89c (2023: earnings 0.33c).
Balance sheet
Net assets decreased by $47.4m to $434.6m during the year ended 31 December
2024 (31 December 2023: $482.0m). This was largely due to the $16.2m decrease
in the value of the Kestrel royalty (net of tax), $7.9m in amortisation of the
Group's producing royalties, the $24.9m impairment of the Voisey's Bay cobalt
stream and associated deferred tax asset, the $10.0m share buyback programme
undertaken in the first half of 2024, the distribution of $10.8m in dividends,
and the $16.3m unrealised foreign exchange impact of the Australian dollar
weakening against the US dollar. This was partially offset by the Group's
adjusted earnings for the year of $28.9m and the $9.8m increase in the value
of the Group's royalty financial instruments (net of tax).
Impairment of Voisey's Bay cobalt stream
Despite positive momentum at Voisey's Bay as operations continue to ramp up
following the transition from the open-pit mine to the underground mine, the
underlying cobalt price remained weak throughout 2024 as new supply from
operations located in the DRC pushed the cobalt market into oversupply. As a
result of this, together with a decline in cobalt price forecasts, the Group
has recognised an impairment charge of $15.1m on the Voisey's' Bay metal
stream for the year ended 31 December 2024, together with a deferred tax
charge of $9.8m related to tax losses which, based on this lower price deck
would not be utilised in full. The impairment charge being recognised is
purely price driven at the time of undertaking the impairment review. This
review was conducted prior to the announcement by the DRC Government of
temporary export restrictions aimed at providing price support. The DRC has
indicated that there is the potential for further price support measures to
take effect after this temporary ban ends. This has resulted in the cobalt
price increasing by over 70% in March 2025.
Net assets of $434.6m at the end of December resulted in net assets per share
of $1.72 (£1.37) - a significant premium to the closing share price of £0.64
at 31 December 2024.
Cash Flow and Liquidity
The Group's net cash generated from operating activities, largely represented
by royalty related income less overheads and taxes, decreased to $29.6m (2023:
$33.5m). Adjusting the cash flows from operating activities for finance costs
of $10.3m (2023: $6.0m) and the principal repayments received from Denison
Mines of $3.0m (2023: $2.3m) results in free cash flow of $22.1m for the year
ended 31 December 2024 (2023: $29.7m).
During the year, the Group paid the final instalment of deferred consideration
to South32 totalling $9.2m in relation to the acquisition of the South32
royalty portfolio in July 2022. In addition, the Group acquired a 0.85% gross
revenue royalty over the Phalaborwa Rare Earths Project in South Africa for
$8.5m and made a $1.5m equity investment in Rainbow Rare Earths Ltd,
operator of the Phalaborwa project.
Partially offsetting the deferred consideration, royalty acquisition, equity
investment and associated transaction costs was the receipt of $2.0m in
deferred consideration and $0.3m in price-linked contingent consideration
arising from the 2021 disposal of the Narrabri royalty. Combined with the
$3.0m in principal repayments received under the Denison loan and the $8.1m
in proceeds realised through the partial disposal of the Group's holding in
LIORC, this resulted in total cash used in investing activities for the year
of $6.3m (2023: $43.2m).
Following the announcement of the Group's updated capital allocation policy in
Q1 2024, the Group executed a $10.0m share buyback programme between March
2024 and May 2024. The share buyback programme was primarily funded by
recycling capital realised through the disposal of the majority of the Group's
holding in LIORC.
The dividends of $10.8m paid during the year represent the interim dividend
for Q3 2023 of 2.125c per share and the final dividend for the year ended 31
December 2023 of 2.125c per share. The first dividend declared under the
updated capital allocation policy (detailed below), was paid in January 2025.
The reduction in free cash flows along with the Group's investing activities
resulted in the Group's net debt position increasing by $7.8m to $82.3m as at
31 December 2024 (2023: $74.5m). Even though borrowings increased, the
leverage profile associated with this remained very manageable and at the end
of 2024 the key leverage covenant was 1.5x compared to the maximum 3.5x
permitted.
In conjunction with the $50.0m acquisition of the Mimbula copper stream
completed in February 2025, the Group extended the maturity date of its
revolving credit facility by 12 months to 30 January 2028 and increased the
total commitments under the facility to $180.0m by partially exercising the
accordion feature and amended the following key terms:
· adjusted EBITDA to calculate the leverage and interest cover ratios
will be calculated using annualised Kestrel income from the trailing six
quarters
· the interest cover covenant has been reduced from 4.0x to 3.0x for
the period 30 January 2028;
· interest payable is SOFR plus a ratchet between 2.25% and 4.50%
depending on leverage levels (previously 2.25 - 4.00%);
· the uncommitted accordion feature has reduced to $45.0m following the
$30.0m increase in total commitments under the facility; and
· the Group retains the option to extend the maturity of the facility
12 months, subject to lender consent.
Following the completion of the Mimbula copper stream acquisition, the Group
has net debt of $129.2m at the date of this report and has access to $45.8m of
liquidity with a potential further $45.0m by way of the accordion for future
acquisitions.
As mentioned previously, the Group undertook a number of initiatives in
conjunction with the Mimbula financing in order to prioritise deleveraging.
This included bringing forward $6.2m in payments from Whitehaven Coal due
under the Narrabri disposal.
Dividends
As announced in March 2024 under the Group's capital allocation policy, the
dividend is now calculated based on a payout ratio of 25%-35% of the average
free cash flow generated in the immediate two preceding six-month periods. The
averaging of the two periods is designed to smooth out quarterly volatility
from the Kestrel royalty as it moves in and out of the Group's private royalty
lands.
The H2 2024 free cash flow of $9.5m combined with the H1 2024 free cash flow
of $12.6m results in an average free cash flow over the two period of $11.0m.
The Board is proposing a final dividend of 1.11 cents per share, which equates
to a payout ratio for the second half of the year of 25%. When combined with
the interim dividend of 1.70 cents per share paid on 31 January 2025, the
total dividend for the year ended 31 December 2024 is 2.81 cents per share.
Subject to approval by shareholders at the 2025 AGM, the final dividend will
be paid on 25 July 2025, to all shareholders on the Register of Members on 27
June 2025.
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
$'000 $'000
Royalty and metal stream related revenue 59,608 61,900
Metal streams cost of sales (1,214) (1,338)
Amortisation and depletion of royalties and streams (7,908) (7,467)
Operating expenses (11,010) (10,889)
Operating profit before impairments and revaluations 39,476 42,206
Impairment of metal streams (15,051) -
Revaluation of royalty financial instruments 11,962 (3,088)
Revaluation of coal royalties (Kestrel) (23,079) (28,520)
Finance income 255 921
Finance costs (8,853) (8,270)
Net foreign exchange gains 1,279 70
Other (loss)/income -net (56) 1,234
Profit before tax 5,933 4,553
Current income tax charge (12,367) (16,325)
Deferred income tax (charge)/credit (3,393) 12,619
(Loss)/profit attributable to equity holders (9,827) 847
Total and continuing earnings per share
Basic (loss)/earnings per share (3.89c) 0.33c
Diluted (loss)/earnings per share (3.89c) 0.33c
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
$'000 $'000
(Loss)/profit attributable to equity holders (9,827) 847
Items that will not be reclassified to profit or loss
Changes in the fair value of equity investments held at fair value through
other comprehensive income
Revaluation of royalty financial instruments (628) (1,706)
Revaluation of mining and exploration interests 76 (491)
Deferred taxes relating to items that will not be reclassified to 58 624
profit or loss
(494) (1,573)
Items that have been or may be subsequently reclassified to profit or loss
Net exchange (loss)/gain on translation of foreign operations (17,969) 336
(17,969) 336
Other comprehensive loss for the year, net of tax (18,463) (1,237)
Total comprehensive loss for the year (28,290) (390)
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
Group
2024 2023
$'000 $'000
Non-current assets
Property, plant and equipment 2,394 3,063
Coal royalties (Kestrel) 48,735 77,354
Metal streams 141,910 161,440
Royalty financial instruments 40,612 32,829
Royalty and exploration intangible assets 245,939 269,801
Mining and exploration interests 4,366 2,791
Deferred costs 2,275 341
Other receivables 17,820 33,708
Deferred tax asset 25,877 37,451
529,928 618,778
Current assets
Trade and other receivables 16,168 9,649
Cash and cash equivalents 7,876 7,850
24,044 17,499
Total assets 553,972 636,277
Non-current liabilities
Borrowings 90,228 82,400
Other payables 3,079 14,461
Deferred tax liability 17,903 28,126
111,210 124,987
Current liabilities
Income tax liabilities 4,167 15,927
Trade and other payables 3,957 13,344
8,124 29,271
Total liabilities 119,334 154,258
Net assets 434,638 482,019
Capital and reserves attributable to shareholders
Share capital 6,528 6,762
Share premium 169,212 169,212
Other reserves 84,268 103,293
Retained earnings 174,630 202,752
Total equity 434,638 482,019
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Other reserves
Foreign
Investment Share-based currency
Share Share Merger revaluation payment translation Special Treasury Retained Total
capital premium reserve reserve reserve reserve reserve shares earnings equity
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 January 2023 6,761 169,212 94,847 6,321 687 3,952 833 102 220,889 503,604
Profit for the year - - - - - - - - 847 847
Other comprehensive income:
Changes in fair value of equity investments held at fair value through other
comprehensive income:
Valuation movement taken to equity - - - (2,197) - - - - - (2,197)
Deferred tax - - - 624 - - - - - 624
Foreign currency translation - - - - - 336 - - - 336
Total comprehensive loss - - - (1,573) - 336 - - 847 (390)
Transferred to retained earnings on disposal - - - (3,002) - - - - 3,002 -
Dividends - - - - - - - - (22,062) (22,062)
Utilisation of treasury shares to satisfy employee-related share-based 1 - - - - - - (1) 76 76
payments
Value of employee services - - - - 791 - - - - 791
Total transactions with owners of the Company 1 - - (3,002) 791 - - - (18,984) (21,195)
Balance at 31 December 2023 6,762 169,212 94,847 1,746 1,478 4,288 833 101 202,752 482,019
Balance at 1 January 2024 6,762 169,212 94,847 1,746 1,478 4,288 833 101 202,752 482,019
Loss for the year - - - - - - - - (9,827) (9,827)
Other comprehensive income:
Changes in fair value of equity investments held at fair value through other
comprehensive income:
Valuation movement taken to equity - - - (552) - - - - - (552)
Deferred tax - - - 58 - - - - - 58
Foreign currency translation - - - - - (17,969) - - - (17,969)
Total comprehensive loss - - - (494) - (17,969) - - (9,827) (28,290)
Transferred to retained earnings on disposal - - - (1,416) - - - - 1,416 -
Dividends - - - - - - - - (10,836) (10,836)
Share buy-back (239) - - - - - - 239 (10,000) (10,000)
Utilisation of treasury shares to satisfy employee-related share-based 5 (878) (5) 878 -
payments
Value of employee services - - - - 1,498 - - - 247 1,745
Total transactions with owners of the Company (234) - - (1,416) 619 - - 234 (18,295) (19,091)
Balance at 31 December 2024 6,528 169,212 94,847 (164) 2,098 (13,681) 833 335 174,630 434,638
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
Group
2024 2023
$'000 $'000
Cash flows from operating activities
Profit before taxation 5,933 4,553
Adjustments for:
Finance income (255) (921)
Finance costs 8,853 8,270
Net foreign exchange (gains)/losses (1,279) (70)
Other losses/(income) 56 (1,234)
Impairment of metal streams 15,051 -
Revaluation of royalty financial instruments (11,962) 3,088
Royalties from royalty financial instruments 1,868 718
Deferred income recognised as royalty revenue - (4,453)
Revaluation of coal royalties (Kestrel) 23,079 28,520
Depreciation of property, plant and equipment 673 681
Amortisation and depletion of royalties and streams 7,908 7,467
Amortisation of deferred acquisition costs 17 17
Share-based payment charges 1,831 899
51,773 47,535
Decrease/(increase) in trade and other receivables 1,714 9,731
(Decrease)/increase in trade and other payables (282) (346)
Cash generated from/(used in) operations 53,205 56,920
Income taxes paid (23,610) (23,380)
Net cash generated from/(used in) operating activities 29,595 33,540
Cash flows from investing activities
Proceeds on disposal of mining and exploration interests - 79
Investment in convertible loan - (109)
Purchase of property, plant and equipment (4) (112)
Purchase of royalty and exploration intangibles (1) (9,167) (57,003)
Purchase of royalty financial instruments (8,852) (7,564)
Proceeds on disposal of royalty intangibles 2,320 5,338
Proceeds on disposal of royalty financial instruments 8,145 13,690
Purchase of mining and exploration interests (1,500) -
Repayments under commodity-related financing agreements 2,984 2,307
Prepaid acquisition costs (445) 50
Finance income received 255 151
Net cash (used in)/generated from investing activities (6,264) (43,173)
Cash flows from financing activities
Drawdown of revolving credit facility 21,271 96,000
Repayment of revolving credit facility (12,365) (55,850)
Share buyback payments (10,000) -
Dividends paid (10,836) (22,062)
Lease payments (461) (357)
Finance costs paid (10,306) (6,010)
Net cash (used in)/generated from financing activities (22,697) 11,721
Net increase in cash and cash equivalents 634 2,088
Cash and cash equivalents at beginning of period 7,850 5,850
Effect of foreign exchange rates (608) (88)
Cash and cash equivalents at end of period 7,876 7,850
(1) Includes deferred consideration paid in current year of $9.2m (2023:
$36.7m)
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