REG - Ecora Resources PLC - Half year results
Wed 07:00
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RNS Number : 7299X Ecora Resources PLC 03 September 2025
3 September 2025
Ecora Resources PLC
("Ecora", the "Group" or the "Company")
Half year results
Ecora Resources PLC (LSE/TSX: ECOR, OTCQX: ECRAF) announces half year results
for the six months ended 30 June 2025 which are available on the Group's
website at www.ecora-resources.com (http://www.ecora-resources.com) and on
SEDAR at www.sedar.com (http://www.sedar.com) .
Marc Bishop Lafleche, Chief Executive Officer of Ecora, commented:
"The continued growth from our critical minerals portfolio is the highlight of
these results, with our base metals portfolio delivering an 81% increase in
contributions compared to the same period last year. This growth has been
driven by the strong on-going ramp up at Voisey's Bay, the acquisition of a
copper stream over the producing Mimbula copper mine, and record performance
at the Mantos Blancos copper mine.
"We were delighted, post period end, to unlock significant value through the
sale of the non-core, development stage Dugbe gold royalty, with total
consideration of up to $20m. The $16.5m we will receive at close enables us to
accelerate the Group's deleveraging and provides further flexibility to
acquire cash generative royalties in our targeted commodity basket in time.
"2025 is proving to be a significant year for Ecora as we continue to pivot
towards a revenue profile underpinned by a growing critical minerals
portfolio, with copper at its core."
Financial highlights:
· Total portfolio contribution in H1 2025 of $17.9m (H1 2024:
$51.3m) with royalty and metal stream related revenue in H1 2025 of $15.8
million (H1 2024: $49.5 million), the decrease period-on-period reflects
timing difference in the Group's mining area at Kestrel (FY 2025: weighted to
H2, FY 2024 weighted to H1)
· 81% increase in our base metals portfolio contribution of $8.7m
(H1 2024: $4.8m)
· Adjusted earnings per share in H1 2025 of 1.27c (H1 2024: 10.38c)
· Loss before tax in H1 2025 of $10.9m (H1 2024: profit $17.9m)
reflects the timing of Kestrel volumes as outlined above
· Net debt increased at 30 June 2025 to $124.6m (31 December 2024:
$82.3m), following the Mimbula acquisition, resulting in a leverage ratio of
2.5x (31 December 2024: 1.5x)
· Proforma net debt as at 30 June 2025 adjusted for the proceeds to
be received from the sale of the Dugbe royalty of $16.5m, is $108.1m; cash
flow expected to be generated in H2 2025 should drive further deleveraging
· Interim dividend of 0.60 cents per share, equating to ~ 25% of
free cash flow
Portfolio contribution: H1 2025 H1 2024 YoY FY2024
$m $m $m
Base metals
Voisey's Bay (cobalt) 5.1 2.0 6.2
Mantos Blancos (copper) 3.8 2.8 5.8
Mimbula (copper) 0.7 n/a n/a
Carlota (copper) 0.3 0.4 0.6
Metal stream cost of sales((1)) (1.2) (0.4) (1.2)
Sub-total 8.7 4.8 81% 11.4
Specialty metals & uranium
McClean Lake((2)) (uranium) 2.2 2.5 4.5
Maracás Menchen (vanadium) 0.8 1.1 2.2
Four Mile (uranium) 0.9 1.4 1.4
Sub-total 3.9 5.0 (22%) 8.1
Bulks & other
Kestrel (steelmaking coal) 3.5 40.8 41.4
EVBC((3)) (gold) 1.6 0.5 1.8
Other 0.2 0.2 0.5
Sub-total 5.3 41.5 (87%) 43.7
Total portfolio contribution 17.9 51.3 (65%) 63.2
(1) Includes ongoing metal purchase costs under stream agreements, for H1
these were: Voisey's Bay ($1.0m); Mimbula ($0.2m)
(2) In H1 2025, principal repayment totalled $1.6m and interest received
totalled $0.6m (H1 2024: principal repayment totalled $1.7m and interest
received totalled $0.8m)
(3) Under IFRS 9, the royalties received from EVBC are reflected in the fair
value movement of the underlying royalty rather than recorded as royalty
income
Portfolio Highlights:
Base metals
· Voisey's Bay (cobalt):
o 140 tonnes of cobalt received in H1 2025, up 150% (H1 2024: 56 tonnes) as
the ramp up of the underground mine continues to perform strongly
o Average sales price realisation in H1 2025 of $16.5/lb (H1 2024: $16.0/lb)
o Alloy grade prices have increased from $14.0/lb at the start of the period
to $19.1/lb at the end of June 2025 as a result of the Government of the
Democratic Republic of Congo imposing export restrictions, which have been
extended to September 2025 when an announcement on a longer-term price support
mechanism is expected
o 140 tonnes of attributable cobalt has been received in Q3 2025 to date,
taking the current volume received YTD to 280 tonnes. The Group is narrowing
its full year 2025 guidance from between 335 and 390 tonnes to between 365 and
390 tonnes
o Planned maintenance period at Voisey's Bay mine scheduled for September
2025, with Long Harbour Processing Plant maintenance period to follow during
Q4 2025
· Mantos Blancos (copper):
o A record six-month portfolio contribution of $3.8m was generated in H1
2025 (H1 2024: $2.8m) following the successful completion of a debottlenecking
project in H2 2024, payable copper volumes increased to 26.3kt (H1 2024:
20.3kt; H2 2024: 22.9k)
o Since achieving designed sulphide mill throughput capacity in November
2024, the plant has met or exceeded the design capacity in seven of the eight
months up to the end of July 2025
o 2025 production is trending towards the upper end of Capstone Copper's
production guidance (49-59kt)
· Mimbula (copper):
o A stream over the Mimbula copper mine was acquired in February 2025 for
$50m
o The Group receives its copper entitlement under the stream in the quarter
following production, as a result FY 25 will have portfolio contribution for
three quarters
o Phase II expansion continues to advance, with the crusher installation now
complete and in commissioning; exploration drilling ongoing at the site
· Development projects
o Santo Domingo (copper)
§ Capstone, the project owner and operator, has been advancing discussions
with potential minority partners at the project level, recently announcing
that it expects to announce a partner in Q3 2025
§ A potential project sanctioning decision is not expected prior to mid-2026
o West Musgrave (nickel and copper)
§ BHP reiterated that it intends to review the decision to temporarily
suspend its Western Australian Nickel (WAN) unit by February 2027; in July
2025 it stated for the first time that as part of the review it will assess
the potential divestment of the WAN assets
o Nifty (copper)
§ Cyprium Metals, operator of the project, has made significant progress
towards first production of the Cathode Project and is targeting Phase 1
project sanction and final investment decision in Q3 2025
§ In August 2025, Cyprium announced a A$80m capital raising, the funds raised
will be used to execute the phase one Cathode Project, strengthen the balance
sheet, and complete the feasibility study for the Concentrate Project
§ Royalty payments to Ecora are not triggered until cumulative 800kt of
copper has been produced from the mine, taking into account historical copper
production this threshold is not expected to be reached until at least 5 years
from production restarting
o Caňariaco (copper)
§ Alta Copper, owner of project, announced a CA$1.5m private placing with
Nascent Exploration Pty. LTD, a wholly-owned subsidiary of Fortescue Ltd.,
which increased Fortescue's holding in Alta Copper Corp to 35.9%
§ Alta Copper is now focusing on preparations for a drilling programme over
the Caňariaco Sur and Quebrada Verde areas
Specialty metals & uranium
· Maracás Menchen (vanadium)
o Sales volumes at Maracás Menchen were 6.5Mlbs (H1 2024: 10.1Mlbs).
Production volumes in Q2 2025 of 5.0Mlbs were up 74% on Q1 2025 as a result of
the operational turnaround plan undertaken by the operator, Largo Inc., the
results of which have been improved production volumes, higher recoveries and
enhanced mine access to support future production
o The average realised sales price for royalty payments was $7.47/lb in H1
2025 (H1 2024: $6.59/lb)
· McClean Lake (uranium)
o Production from the Cigar Lake mine, which feeds the McClean Lake Mill,
totalled 10Mlbs in H12025, Cameco has a period of maintenance scheduled in H2
2025 and is on track to hit full year guidance of 18Mlbs
· Four Mile (uranium)
o Generated $0.9m of portfolio contribution in H1 2025 (H1 2024: $1.4m) as
normal sales operations resumed following a period in H2 2024 of stockpiling
inventory
· Development and early stage
o Phalaborwa (rare earths)
§ Rare earths have increased in strategic significance as part of the ongoing
realignment of the longstanding global trade order and the establishment of an
independent supply chain is a focal point for the US, the EU and aligned
countries
§ In August, Rainbow Rare Earths Ltd, owner of the project, announced that
tests have delivered an exceptionally pure mixed rare earth product that
delivers a mixed rare earth carbonate average >55% total rare earth oxides
(TREO), considerably exceeding the rare earth industry's typical refinery
specification of > 42% TREO
§ A Definitive Feasibility Study is progressing well, and Rainbow is aiming
to release the DFS before the end of 2025
o Patterson Corridor East (uranium)
§ NexGen Energy continues to report exciting results from the drilling
programme Patterson Corridor East
§ Assays returned from the discovery show intercepts ranking amongst the
world's highest grade for basement hosted uranium vein projects
§ Further drilling is planned throughout the rest of 2025
§ In July 2025, NexGen acquired Rio Tinto's 10% production carried interest
over 39 NexGen owned mineral claims (which mirror the mineral claims covered
by Ecora's royalty interests) including those hosting the Patterson Corridor
East discovery giving NexGen 100% ownership of its entire portfolio
Bulks and other
· Kestrel (steelmaking coal)
o Mining activity at Kestel remained outside of the Group's private royalty
area for the majority of H1 2025, with only 400kt of saleable volumes
registered
o Operations returned to the Group's private royalty area at the end of Q2
2025 and are expected to remain in the Group's royalty area throughout Q3 2025
and into Q4 2025 with FY guidance for Ecora's attributable volumes remaining
unchanged at 2.2mt - 2.3mt
Outlook
· The growth in volumes from the critical minerals portfolio is set
to continue through the second half of the year with Voisey's Bay performing
strongly and the Mimbula mine continuing to ramp up
· The lower end of the Voisey's Bay FY 2025 guidance increased from
335-390t of attributable cobalt to 365-390t of attributable cobalt
· Acceleration of the US government's critical minerals strategy
including sizeable equity investments, debt financing and growing stockpile of
strategic minerals
o US Department of Defense to tender for purchase of up to $500m of alloy
grade cobalt stockpile over five years which could drive higher price levels;
only four qualifying producers including Vale's Voisey's Bay mine
o The tier one Phalaborwa rare earths project, with an existing indirect US
government ownership, is well positioned to benefit from the US Department of
Defense's active approach to securing rare earths supply
· With mining at Kestrel returning to the Group's private royalty
area, H2 2025 will also see a much stronger total portfolio contribution
relative to H1 2025
· Mantos Blancos Phase II study evaluating a brownfield expansion
to increase mill throughput (targeting additional ~10ktpa of Cu over first 10
years) and a tailings reprocessing opportunity (potential to increase cathode
production by ~25ktpa over 15 years) is due in 2026
· The Santo Domingo project is expected to take a material step
forward during H2 2025 with Capstone expected to announce a strategic partner
for the development ahead of potential project sanctioning in 2026
· Rainbow Rare Earths anticipate releasing the Definitive
Feasibility Study for the Phalaborwa rare earths project, with the target for
first production by end of 2027
· The anticipated growth in volumes across the Group's portfolio of
producing assets in H2 2025 should, at current commodity prices, enable the
Group to further reduce net debt by year end
Analyst presentation
A live webcast of the presentation including Q&A will be held today at
2:00 pm BST for investors and analysts and will be available via our website
at www.ecora-resources.com or on https://brrmedia.news/ECOR_HY_25.
This will be available for playback after the event.
Please join the event 5-10 minutes prior to the scheduled start time.
Event Ecora Resources - 2025 Half Year Results
Time Zone Dublin, Edinburgh, Lisbon, London
Start Time/Date 2.00pm (BST)
Webcast Link https://brrmedia.news/ECOR_HY_25
Dial in details: UK: +44 (0) 33 0551 0200
USA Local: +1 786 697 3501
Canada Toll Free: 1 866 378 356
Password: Ecora HY
For further information
Ecora Resources PLC +44 (0) 20 3435 7400
Geoff Callow - Head of Investor Relations www.ecora-resources.com (http://www.ecora-resources.com)
FTI Consulting +44 (0) 20 3727 1000
Sara Powell / Ben Brewerton / Nick Hennis ecoraresources@fticonsulting.com (mailto:ecoraresources@fticonsulting.com)
Notes to Editors:
Alternative Performance Measures
Throughout this announcement 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'
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 net of metal stream costs of sales, plus
royalties received or receivable from royalty financial instruments carried at
FVTPL and principal repayments received under the Denison financing agreement.
Refer to note 18 of the condensed consolidated financial statements for
portfolio contribution.
Operating profit
Operating profit represents the Group's underlying operating performance from
its royalty and stream interests. Operating profit is royalty and stream
related revenue, less metal streams cost of sales, amortisation and depletion
of royalties and streams and operating expenses. Operating profit excludes
impairments and revaluations, and reconciles to 'operating profit before
impairments and revaluations' on the income statement.
Adjusted earnings and adjusted earnings per share
Adjusted earnings represent the Group's underlying operating performance from
core activities. Adjusted earnings is the profit/loss attributable to equity
holders plus royalties received from 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), amortisation and depletion charges, unrealised foreign
exchange gains and losses, and any associated deferred tax, together with any
profit or loss on non-core asset disposals as such disposals are not expected
to be ongoing. Adjusted earnings divided by the weighted average number of
shares in issue gives adjusted earnings per share. Refer to note 3 of the
condensed consolidated financial statements for adjusted earnings and adjusted
earnings per share.
Net debt
Net debt is calculated as borrowings less cash and cash equivalents. Refer to
note 11 of the condensed consolidated financial statements for details of the
Group's borrowings and net debt.
Free cash flow and free cash flow per share
The structure of a number of the Group's royalty financing arrangements, such
as the Denison transaction completed in February 2017, result in a significant
amount of cash flow being reported as principal repayments, which are not
included in the income statement.
Free cash flow per share is calculated by dividing 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, by the weighted average number of shares in issue. Refer to note
16 to the condensed consolidated financial statements for free cash flow per
share.
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'. 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; no material adverse
impact on the underlying operations of the Group's portfolio of royalties; 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; the accuracy of
the information provided to the Group by the owners and operators of such
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 ''Emerging Risks' and 'Principal
Risks and Uncertainties' section 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 of our most recent Annual Report entitled 'Emerging Risks' and
'Principal Risks and Uncertainties' 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
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.
FINANCE REVIEW
Results
Total portfolio contribution for H1 2025 was $17.9m (H1 2024: $51.3m) as in
contrast to H1 2024, production at Kestrel remained largely outside of the
Group's private royalty lands during the period, whereas in 2025 production is
expected to be H2 weighted.
Our base metal royalty portfolio saw an 81% increase with a portfolio
contribution of $8.7m (H1 2024: $4.8m). The first half of the year saw
Mantos Blancos generate two consecutive quarters of record royalties totalling
$3.8m (H1 2024: $2.8m), while deliveries from Voisey's Bay more than doubled
resulting in cobalt metal sales of $5.1m (H1 2024: $2.0m). In addition, the
Group received its maiden copper entitlement from the Mimbula copper stream
acquired in February 2025, which resulted in copper metal sales of $0.7m.
The specialty metals and uranium portfolio generated a portfolio contribution
of $3.9m, down 22% on H1 2024 ($5.0m) mainly as a result of a quarterly lag in
reporting of Four Mile volumes, which returned to a normal sales schedule in
Q1 2025 after a period of stockpiling the second half of 2024.
The Group's bulks and other portfolio saw the buoyant gold price drive a
strong performance from EVBC with a portfolio contribution of $1.6m (H1 2024:
$0.5m). As expected, timing differences in production from the Group's private
royalty lands at Kestrel drove the decrease in royalties in H1 2025 of $3.5m
(H1 2024: $40.8m). Mining returned to the Group's private royalty area at the
end of Q2 with only 0.4Mt of private royalty sales in H1 2025 (H1 2024: 2.0Mt)
and is expected to remain there for a large part of H2 2025 with around
1.8-1.9Mt expected during the period. The contribution from the Group's other
producing royalties remained flat year on year at $0.2m and when combined with
the contribution from EVBC and Kestrel, the contribution from the Group's
bulks and other portfolio totalled $5.3m in H1 2025 (H1 2024: $41.5m).
The decrease in portfolio contribution combined with the $10.8m reduction in
the fair value of the Kestrel royalty, which reflects slightly lower
forward-looking pricing inputs, resulted in a H1 2025 loss after tax of $9.0m
(H1 2024: profit of $11.5m), generating a basic loss per share of 3.63c for
the first half of 2025 (H1 2024: earnings per share 4.48c). Adjusting for
the royalties from EVBC and the principal repayments from McClean Lake,
together with valuation movements, non-cash items and the tax effect of these
adjustments, resulted in H1 2025 adjusted earnings of $3.2m (H1 2024: $26.6m)
and adjusted earnings per share of 1.27c (H1 2024: 10.38c).
Balance Sheet
Net assets decreased by $4.7m in the first six months of the year, mainly due
to the $7.6m decrease in the value of the Kestrel royalty (net of tax), $4.6m
in amortisation and depletion of the Group's producing royalty intangibles and
metal streams and the declaration of $7.0m in dividends, slightly offset by
favourable foreign exchange translation of $10.3m, together with the Group's
adjusted earnings for the period of $3.2m.
Net assets of $429.9m as at 30 June 2025 equates to net assets per share of
$1.73 (£1.26), representing a significant premium to the closing share price
of £0.63 on the same date.
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 $4.1m (H1
2024: $13.2m) reflecting the timing difference in production from Group's
private royalty lands at Kestrel in the first half of 2025 compared to the
same period in 2024. Adjusting the cash flows from operating activities for
finance costs of $3.9m and the principal repayments received from Denison
Mines of $1.6m, together with finance income of $0.2m results in free cash
flow of $2.0m for the six months ended 30 June 2025 (H1 2024: $10.4m restated)
as detailed in note 16 of the financial statements.
The Group's borrowings have increased from $90.2m at 31 December 2024 to
$132.6m at 30 June 2025, reflecting the acquisition of the Mimbula copper
stream in February 2025 for cash consideration of $50.0m and associated
acquisition costs of $1.1m. Slightly offsetting the Mimbula acquisition was
the accelerated receipt of $11.5m in deferred and contingent consideration
relating to the disposal of the Narrabri royalty after the Group entered into
a forward payment agreement with Whitehaven Coal Limited bringing forward the
receipt of the outstanding consideration to February 2025 from the instalments
due between 2025 and the end of 2026, resulting in total cash used in
investing activities for the six months ended 30 June 2025 of $37.9m (2024:
net cash from investing activities $2.9m).
While the Group's borrowings increased in the first half of the year, the
Group is operating well within the financial covenants of its revolving credit
facility, with a leverage ratio (net debt to adjusted EBITDA) of 2.5x compared
to the maximum 3.5x permitted. Absent any further acquisitions, borrowings are
expected to have peaked at 30 June 2025, and the Group expects there to be
meaningful deleveraging in the second half of the year following the disposal
of the Dugbe royalty for upfront cash consideration of $16.5m as detailed in
note 10 and note 19, together with the continued ramp-up of operations
underlying our base metals portfolio and as mining activity at Kestrel returns
to the Group's private royalty lands.
Dividends
Under the Group's capital allocation policy, the semi-annual cash dividend is
based on a range 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 H1 2025 free cash flow of $2.0m and the H2 2024 free cash flow of $9.5m
results in an average free cash flow of $5.7m for the two periods. The Board
has determined to pay an interim dividend of 0.60 cents per share for the
first six months of 2025. This equates to ~25% of the average free cash flow.
The 2025 interim dividend will be paid on 30 January 2026 to all shareholders
on the Register of Members on 9 January 2026.
Principal risks and uncertainties
Ecora Resources is exposed to a variety of risks and uncertainties which may
have a financial, operational or reputational impact on the Group. The
principal risks and uncertainties facing the Group in the second half of 2025
are the same as those disclosed in the 2024 Annual Report and Accounts, and
relate to the following:
• Catastrophic and natural catastrophe risks
• Investment approval
• Future demand
• Commodity prices
• Operator dependence and concentration risk
• Geopolitical events
• Financing capability
• Stakeholder support
The Group is exposed to changes in the economic environment, including to tax
rates and regimes, as with any other business.
Details of any key risks and uncertainties specific to the period are covered
in the Portfolio Highlights and Outlook sections. The principal risks and
uncertainties facing the Group at the 2024 year end are set out in detail on
pages 63 to 69 of the strategic report in the 2024 Annual Report and Accounts.
The 2024 Annual Report and Accounts is available on the Group's website
www.ecora-resources.com (http://www.ecora-resources.com) .
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six months ended
30 June 30 June
2025 2024
Notes $'000 $'000
Royalty and metal stream related revenue 2 15,838 49,458
Mineral streams cost of sales (1,199) (368)
Amortisation and depletion of royalties and streams 6, 8 (4,560) (3,071)
Operating expenses (6,354) (5,764)
Operating profit before revaluations 3,725 40,255
Revaluation of royalty financial instruments 7 2,503 8,465
Revaluation of coal royalties (Kestrel) 5 (10,832) (23,858)
Finance income 133 103
Finance costs (4,879) (4,916)
Net foreign exchange losses (1,856) (839)
Other gains/(losses) 269 (1,308)
(Loss)/profit before tax (10,937) 17,902
Current income tax charge (933) (8,089)
Deferred income tax credit 12 2,832 1,673
(Loss)/profit attributable to equity holders (9,038) 11,486
Total and continuing (loss)/earnings per share
Basic (loss)/earnings per share 3 (3.63c) 4.48c
Diluted (loss)/earnings per share 3 (3.63c) 4.47c
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six months ended
30 June 30 June
2025 2024
Notes $'000 $'000
(Loss)/profit attributable to equity holders (9,038) 11,486
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 (15) (612)
Revaluation of mining and exploration interests 161 11
Deferred tax relating to items that will not be reclassified to profit or loss 12 3 69
149 (532)
Items that have been or may be subsequently reclassified to profit or loss
Net exchange gain/(loss) on translation of foreign operations 10,332 (4,685)
10,332 (4,685)
Other comprehensive profit/(loss) for the period, net of tax 10,481 (5,217)
Total comprehensive profit for the period 1,443 6,269
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
AS AT 30 JUNE 2025
Audited
30 June 31 December
2025 2024
Notes $'000 $'000
Non-current assets
Property, plant and equipment 2,331 2,394
Coal royalties (Kestrel) 5 40,259 48,735
Metal streams 6 189,854 141,910
Royalty financial instruments 7 34,262 40,612
Royalty and exploration intangible assets 8 249,735 245,939
Mining and exploration interests 4,609 4,366
Deferred costs 2,427 2,275
Other receivables 9 17,343 17,820
Deferred tax 12 25,291 25,877
566,111 529,928
Current assets
Trade and other receivables 9 7,703 16,168
Cash and cash equivalents 7,944 7,876
15,647 24,044
Asset held for sale 10 9,000 -
24,647 24,044
Total assets 590,758 553,972
Non-current liabilities
Borrowings 11 132,559 90,228
Other payables 13 3,171 3,079
Deferred tax 12 15,221 17,903
150,951 111,210
Current liabilities
Income tax liabilities 2,140 4,167
Trade and other payables 13 7,755 3,957
9,895 8,124
Total liabilities 160,846 119,334
Net assets 429,912 434,638
Capital and reserves attributable to shareholders
Share capital 14 6,540 6,528
Share premium 14 169,212 169,212
Other reserves 94,183 84,268
Retained earnings 159,977 174,630
Total equity 429,912 434,638
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) FOR THE SIX
MONTHS ENDED 30 JUNE 2024
Other reserves
Share Foreign
Investment based currency
Share Share Merger revaluation payment translation Special Treasury Retained Total
capital premium reserve reserve reserve reserve reserve shares earnings equity
Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 January 2024 6,762 169,212 94,847 1,746 1,478 4,288 833 101 202,752 482,019
Profit for the period - - - - - - - - 11,486 11,486
Other comprehensive income:
Changes in fair value of equity investments held at fair value through other
comprehensive income
Valuation movement taken to equity - - - (601) - - - - - (601)
Deferred tax 12 - - - 69 - - - - - 69
Foreign currency translation - - - - - (4,685) - - - (4,685)
Total comprehensive profit - - - (532) - (4,685) - - 11,486 6,269
Transferred to retained earnings on disposal - - - (1,416) - - - - 1,416 -
Dividends - - - - - - - - (10,836) (10,836)
Share buy-back 14 (239) - - - - - - 239 (10,000) (10,000)
Utilisation of treasury shares to satisfy employee related share base payments 14 5 - - - (878) - - (5) 878 -
Value of employee services - - - - 705 - - - - 705
Total transactions with owners of the Company (234) - - (1,416) (173) - - 234 (18,542) (20,131)
Balance at 30 June 2024 6,528 169,212 94,847 (202) 1,305 (397) 833 335 195,696 468,157
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) FOR THE SIX
MONTHS ENDED 31 DECEMBER 2024
Other reserves
Share Foreign
Investment based currency
Share Share Merger revaluation payment translation Special Treasury Retained Total
capital premium reserve reserve reserve reserve reserve shares earnings equity
Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 July 2024 6,528 169,212 94,847 (202) 1,305 (397) 833 335 195,696 468,157
Loss for the period - - - - - - - - (21,313) (21,313)
Other comprehensive income:
Changes in fair value of equity investments held at fair value through other
comprehensive income
Valuation movement taken to equity - - - 49 - - - - - 49
Deferred tax 12 - - - (11) - - - - - (11)
Foreign currency translation - - - - - (13,284) - - - (13,284)
Total comprehensive loss - - - 38 - (13,284) - - (21,313) (34,559)
Value of employee services 14 - - - - 793 - - - 247 1,040
Total transactions with owners of the Company - - - - 793 - - - 247 1,040
Balance at 31 December 2024 6,528 169,212 94,847 (164) 2,098 (13,681) 833 335 174,630 434,638
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) FOR THE SIX
MONTHS ENDED 30 JUNE 2025
Other reserves
Share Foreign
Investment based currency
Share Share Merger revaluation payment translation Special Treasury Retained Total
capital premium reserve reserve reserve reserve reserve shares earnings equity
Notes $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 January 2025 6,528 169,212 94,847 (164) 2,098 (13,681) 833 335 174,630 434,638
Loss for the period - - - - - - - - (9,038) (9,038)
Other comprehensive income:
Changes in fair value of equity investments held at fair value through other
comprehensive income
Valuation movement taken to equity - - - 146 - - - - - 146
Deferred tax 12 - - - 3 - - - - - 3
Foreign currency translation - - - - - 10,332 - - - 10,332
Total comprehensive profit - - - 149 - 10,332 - - (9,038) 1,443
Dividends 4 - - - - - - - - (6,994) (6,994)
Utilisation of treasury shares to satisfy employee related share base payments 14 12 - - - (1,292) - - (12) 1,379 87
Value of employee services - - - - 738 - - - - 738
Total transactions with owners of the Company 12 - - - (554) - - (12) (5,615) (6,169)
Balance at 30 June 2025 6,540 169,212 94,847 (15) 1,544 (3,349) 833 323 159,977 429,912
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six months ended
30 June 30 June
2025 2024
Notes $'000 $'000
Cash flows from operating activities
(Loss)/Profit before taxation (10,937) 17,902
Adjustments for:
Finance income (133) (103)
Finance costs 4,879 4,916
Net foreign exchange loss 1,856 839
Other (gains)/ losses (269) 1,308
Revaluation of royalty financial instruments 7 (2,503) (8,465)
Royalties from royalty financial instruments 1,581 510
Revaluation of coal royalties (Kestrel) 5 10,832 23,858
Depreciation of property, plant and equipment 63 87
Amortisation and depletion of royalties and streams 6, 8 4,560 3,071
Amortisation of deferred acquisition costs 9 9
Share based payment expense 749 681
10,687 44,613
Increase in trade and other receivables (3,168) (13,895)
(Decrease)/increase in trade and other payables (401) 793
Cash generated from operations 7,118 31,511
Income taxes paid (3,027) (18,295)
Net cash generated from operating activities 4,091 13,216
Cash flows from investing activities
Purchase of property, plant and equipment - (2)
Purchase of royalty and exploration intangibles - (9,167)
Purchase of metal stream 6 (51,123) -
Proceeds on disposal of royalty and exploration intangibles 9 11,460 2,201
Proceeds on disposal of royalty financial instruments - 8,145
Repayments under commodity related financing agreements 9 1,647 1,714
Prepaid acquisition costs (18) (60)
Finance income received 133 103
Net cash (used in)/from investing activities (37,901) 2,934
Cash flows from financing activities
Drawdown of revolving credit facility 11 50,000 16,600
Repayment of revolving credit facility 11 (8,500) (400)
Dividends paid 4 (4,232) (10,836)
Share buyback payments 14 - (10,000)
Finance costs paid (3,919) (4,624)
Net cash from/(used in) financing activities 33,349 (9,260)
Net (decrease)/increase in cash and cash equivalents (461) 6,890
Cash and cash equivalents at beginning of period 7,876 7,850
Effect of foreign exchange rates 529 (1,760)
Cash and cash equivalents at end of period 7,944 12,980
NOTES TO THE ACCOUNTS
1. Basis of preparation
These condensed consolidated interim financial statements of Ecora Resources
PLC are for the six months ended 30 June 2025. They have been prepared in
accordance with United Kingdom adopted International Accounting Standard 34
'Interim Financial Reporting'. They do not include all of the information
required for full annual financial statements, and should be read in
conjunction with the consolidated financial statements of the Group for the
year ended 31 December 2024.
This condensed consolidated financial information does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2024 were approved on 26
March 2025. Those accounts, which contained an unqualified audit report
under Section 495 of the Companies Act 2006 and which did not include a
reference to any matters to which the auditors drew attention by way of
emphasis and did not make any statements under Section 498 of the Companies
Act 2006, have been delivered to the Registrar of Companies in accordance with
Section 441 of the Companies Act 2006.
1.1 Going concern
The financial position of the Group and its cash flows are set out on pages 13
and 17. The Directors have considered the principal risks of the Group which
are set out on pages 63 to 69 of the 2024 Annual Report, and considered key
sensitivities which could impact on the level of available borrowings. As at
30 June 2025 the Group had cash and cash equivalents of $7.9m and borrowings
under its revolving credit facility of $132.6m leaving $47.4m undrawn as set
out in note 11.
Subsequent to the period end, the Group made a partial repayment of $3.8m and
borrowed a further $1.5m. As a result of these transactions, total borrowings
under the Group's revolving credit facility as of the date of this report are
$130.3m. Subject to continued covenant compliance, the Group has access to a
further $49.7m through its secured $180.0m revolving credit facility as at the
date of this report.
The Directors have considered the Group's cash flow forecasts for the period
to the end of 30 September 2026 under base case and downside scenarios,
including the demand for the commodities produced and the prices realised by
the underlying operations of the Group's royalty and stream portfolio, and the
ongoing operations themselves, including production levels. In all of the
scenarios modelled (including an aggregate downside scenario which combines
adverse movements of 10% in respect of both volumes and pricing), the Group
maintains sufficient liquidity and remains in compliance with the financial
covenants of its revolving credit facility throughout the period assessed.
The Board is satisfied that the Group's forecasts and projections, taking
account of reasonably possible changes in trading performance and other
uncertainties, together with the Group's cash position and access to the
revolving credit facility, show that the Group will be able to operate within
the levels of its current facilities for the period assessed. For this reason,
the Group continues to adopt the going concern basis in preparing its
condensed consolidated interim financial statements.
1.2 Alternative Performance Measurers
The condensed consolidated interim financial statements include certain
Alternative Performance Measures (APMs) which include adjusted earnings per
share, net debt, free cash flow per share and portfolio contribution. The
directors believe that disclosing alternative performance measures provides
benefit to the users of the financial statements and aligns to the Group's
internal monitoring of key performance indicators. These APMs are defined on
page 4 of this half yearly financial report and are reconciled to GAAP
measures in the notes 3, 4, 11, 16 and 18 respectively. The APM definitions
are consistent with those disclosed in the consolidated financial statements
of the Group for the year ended 31 December 2024 on the inside front cover.
1.3 Changes in accounting policies
The accounting policies applied are materially consistent with those adopted
and disclosed in the Group financial statements for the year ended 31 December
2024, apart from note 1.4 below which is applicable for the six months ended
30 June 2025 and was not previously disclosed.
NOTES TO THE ACCOUNTS
The following accounting standards, amendments and clarifications were adopted
in the period with no significant impact:
- Amendments to IAS 21 to clarify the accounting when
there is a lack of exchangeability
The Group has not early adopted any other amendment, standard or
interpretation that has been issued but is not yet effective. It is expected
that where applicable, these standards and amendments will be adopted on each
respective effective date.
1.4 Assets held for sale
Non-current assets are classified as held for sale if their carrying amount
will be recovered principally through a sale transaction rather than
continuing use. This classification is only met if the asset is available for
immediate sale in its present condition and its sale is highly probable. At 30
June 2025, the Dugbe 1 royalty financial instrument is classified as an asset
held for sale (note 1.5 and note 10) and measured at fair value in line with
the Group's accounting policy on financial instruments as disclosed in note
3.9 of the consolidated financial statements of the Group for the year ended
31 December 2024. Assets classified as held for sale are presented separately
as current items in the balance sheet.
1.5 Key sources of estimation uncertainty and critical accounting judgements
Key areas of critical accounting judgement and estimation uncertainty that
have the most significant effect on the Group's consolidated financial
statements remain as disclosed in note 4 of the consolidated financial
statements of the Group for the year ended 31 December 2024.
Ø Classification of Mimbula stream: initial recognition and subsequent
measurement
On 4 March 2025, the Group completed the acquisition of a copper stream with
reference to production at the Mimbula copper mine owned by Moxico Resources
plc ('Moxico') (note 6). The critical accounting judgment the Directors
considered was determining which accounting standard to apply to the stream as
detailed in the "Classification of royalty and streaming arrangements: initial
recognition and subsequent measurement" disclosed in note 4 of the
consolidated financial statements of the Group for the year ended 31 December
2024.
As the Mimbula copper stream results in title to physical delivery of copper
with the consequent inventory risk prior to sale and the revenue generated
under the Group's direction, rather than a percentage of revenue generated by
the operator, the Directors concluded the stream should be classified as
property, plant and equipment in accordance with IAS 16 - Property, Plant
& Equipment. The cost of the asset is comprised of its purchase price
($50.0m) and closing costs directly attributable to acquiring the asset
($1.1m) and is subsequently recorded at cost less accumulated depletion and
accumulated impairment charges, if any.
Ø Classification and valuation of Dugbe 1 royalty financial instrument as
asset held for sale
As detailed in note 37 of the consolidated financial statements of the Group
for the year ended 31 December 2024, Nioko Resources Corporation acquired a
majority interest in Hummingbird Resources PLC on 7 January 2025, with
Hummingbird subsequently de-listing from the AIM market. The Group has certain
change of control protections under its Dugbe royalty agreement. This includes
the right to terminate the royalty and recover the $15.0m royalty
consideration from the operator, for which Hummingbird and Pasofino Gold
Limited are co-guarantors, or to reach some other form of commercial solution.
Classification
As at 30 June 2025, management were committed to recovering the carrying
amount of the Dugbe 1 royalty financial instrument through disposal
(termination or sale), rather than through continuing use. As the disposal
process was considered to be highly probable and expected to complete within
12 months, the Dugbe 1 royalty financial instrument was reclassified from a
royalty financial instrument as at 31 December 2024 to an asset held for sale
as at 30 June 2025 in accordance with IFRS 5: Non-current assets held of sale
and discontinued operations. As detailed in note 19, on 1 September 2025, the
Company entered into a binding agreement to sell its wholly-owned subsidiary
which holds the Dugbe 1 royalty.
NOTES TO THE ACCOUNTS
Valuation
As a financial instrument, Dugbe continues to be carried at fair value. As at
30 June 2025, management were engaged in discussions to dispose of the asset
through a sale in addition to their option to exercise their right to
terminate the royalty agreement. In estimating the appropriate fair value of
the Dugbe 1 royalty financial instrument as at 30 June 2025, management have
considered the contractual arrangements, the status of ongoing negotiations,
and conditions associated with offers received including an estimate of credit
risk, resulting in the valuation of $9.0m (31 December 2024: $5.9m).
2 Royalty and metal stream related revenue
Six months ended
30 June 2025 30 June 2024
$'000 $'000
Royalty revenue 9,181 46,400
Stream revenue 5,831 1,978
Interest from royalty related financial assets (note 9) 635 809
Dividends from royalty financial instruments 191 271
15,838 49,458
3 (Loss)/earnings per share
(Loss)/earnings per ordinary share is calculated on the Group's loss after tax
of $9.0m for the six months ended 30 June 2025 (30 June 2024: profit of
$11.5m) and the weighted average number of shares in issue during the period
of 248,831,549 (2024: 256,291,853).
Six months ended
30 June 2025 30 June 2024
$'000 $'000
Net (loss)/profit attributable to shareholders
(Loss)/earnings - basic (9,038) 11,486
(Loss)/earnings - diluted (9,038) 11,486
Six months ended
30 June 2025 30 June 2024
Weighted average number of shares in issue
Basic number of shares outstanding 248,831,549 256,291,853
Dilutive effect of Employee Share Option Scheme - 527,226
Diluted number of shares outstanding 248,831,549 256,819,079
(Loss)/earnings per share - basic (3.63c) 4.48c
(Loss)/earnings per share - diluted (3.63c) 4.47c
In calculating the earnings per share and adjusted earnings per share, the
weighted average number of shares in issue takes into account the dilutive
effect of the Group's employee share option schemes in those periods where the
Group has earnings or adjusted earnings. In periods where the Group has a
loss or an adjusted loss, the employee share option schemes are considered
anti-dilutive as including them in the diluted number of shares outstanding
would decrease the loss per share, as such they are excluded.
Adjusted earnings per share
Adjusted earnings represent the Group's underlying operating performance from
core activities. Adjusted earnings is the profit/loss attributable to equity
holders plus the royalty receipts from the EVBC royalty, less all valuation
movements and impairments (which are non-cash adjustments that arise primarily
due to changes in commodity prices), amortisation and depletion charges,
unrealised foreign exchange gains and losses, and any associated deferred tax,
together with any profit or loss on non-core asset disposals as such disposals
are not expected to be ongoing.
NOTES TO THE ACCOUNTS
Diluted
Earnings earnings
Earnings per share per share
$'000 c c
Net loss attributable to shareholders
Loss - basic and diluted for the six months ended 30 June 2025 (9,038) (3.63c) (3.63c)
Adjustment for:
Amortisation and depletion of royalties and streams 4,560
Receipts from royalty financial instruments 1,581
Revaluation of royalty financial instruments (2,503)
Revaluation of coal royalties (Kestrel) 10,832
Revaluation of contingent consideration (269)
Unrealised foreign exchange losses 1,856
Tax effect of the adjustments above (3,851)
Adjusted earnings - basic and diluted for the six months ended 30 June 2025 3,168 1.27c 1.27c
Diluted
Earnings earnings
Earnings per share per share
$'000 c c
Net profit attributable to shareholders
Profit - basic and diluted for the six months ended 30 June 2024 11,486 4.48c 4.47c
Adjustment for:
Amortisation and depletion of royalties and streams 3,071
Receipts from royalty financial instruments 510
Revaluation of royalty financial instruments (8,465)
Revaluation of coal royalties (Kestrel) 23,858
Revaluation of contingent consideration 1,308
Unrealised foreign exchange losses 839
Tax effect of the adjustments above (5,991)
Adjusted earnings - basic and diluted for the six months ended 30 June 2024 26,616 10.38c 10.36c
The weighted average number of shares in issue for the purpose of calculated
basic and diluted adjusted earnings per share are as follows:
Six months ended
30 June 2025 30 June 2024
Weighted average number of shares in issue
Basic number of shares outstanding 248,831,549 256,291,853
Dilutive effect of Employee Share Option Scheme 384,410 527,226
Diluted number of shares outstanding 249,215,959 256,819,079
4 Dividends
On 31 January 2025, an interim dividend of 1.70c per share was paid to
shareholders ($4.2m) in respect of the year ended 31 December 2024.
The Board recommended and the Company's shareholders approved a final dividend
in respect of the year ended 31 December 2024 of 1.11c at the Annual General
Meeting on 5 June 2025. The final dividend totalling $2.8m was paid on 25 July
2025. A liability has been recorded for this dividend at 30 June 2025.
Under the Group's capital allocation policy, the semi-annual cash dividend is
based on a range of 25-35% of the average free cash flow generated in the
immediate two preceding six-month periods. The H1 2025 free cash flow of $2.0m
and the H2 2024 free cash flow of $9.5m results in an average free cash flow
of $5.7m for the two periods. The Board has determined to pay an interim
dividend of 0.60 cents per share for the first six months of 2025. This
equates to ~25% of the average free cash flow. The 2025 interim dividend will
be paid on 30 January 2026, to all shareholders on the Register of Members on
9 January 2026.
NOTES TO THE ACCOUNTS
5 Coal royalties (Kestrel)
$'000
At 1 January 2024 77,354
Foreign currency translation (2,069)
Loss on revaluation of coal royalties (23,858)
At 30 June 2024 51,427
Foreign currency translation (3,471)
Gain on revaluation of coal royalties 779
At 31 December 2024 48,735
Foreign currency translation 2,356
Loss on revaluation of coal royalties (10,832)
At 30 June 2025 40,259
The carrying value of the Group's coal royalty of $40.3m (A$61.5m) is based on
a valuation completed during June 2025 by an independent coal industry
advisor, amended for management's assessment of the future commodity price and
inflation assumptions. The independent coal industry advisor's assumptions
relating to volumes, foreign exchange rates and nominal discount rate were not
changed by management.
The valuation is based on a net present value of the future pre-tax cash flows
from Kestrel discounted at a nominal rate of 10.0% (30 June 2024: 10.5%; 31
December 2024: 10.0%). The key assumptions in the valuation other than
discount rate relate to price and foreign exchange rates.
Price assumptions
The independent coal industry advisor's price assumptions were based on the
June 2025 Consensus Economics forecast of U$200/t for the second half of 2025.
The commodity prices management have assumed an average price for the second
half of 2025 of U$198/t based on the Australian Premium Coking Coal FOB
Financial Future price, before reverting to consensus pricing collated by RBC
which increases to an average nominal price U$215/t between 2026 and 2029.
Foreign exchange rate assumptions
The independent coal industry advisor's AUD:USD exchange rate assumptions used
in the 30 June 2025 valuation assume the Australian to US dollar rate
increases from 0.65 in the second half of 2025 to 0.67 by 2027 before
achieving a long term rate of 0.69.
Were the coal royalty to be carried at cost the carrying value would be $0.3m
(2024: $0.3m).
6 Metal streams
30 June 2025 31 December 2024
$'000 $'000
Cost 226,370 175,585
Contingent consideration 2,978 2,978
Gross carrying amount 229,348 178,563
Depletion and impairment (39,494) (36,653)
Carrying amount 189,854 141,910
Mimbula stream acquisition
On 4 March 2025, the Group completed the acquisition of a copper stream with
reference to production at the Mimbula copper mine owned by Moxico Resources,
located in Zambia, for a total cash consideration of $50.0m, plus capitalised
transaction costs of $1.1m.
NOTES TO THE ACCOUNTS
7 Royalty financial instruments
$'000
At 1 January 2024 32,829
Royalties due or received from royalty financial instruments (510)
Revaluation of royalty financial instruments recognised in profit or loss 8,465
Revaluation of royalty financial instruments recognised in equity (612)
Disposals (8,145)
Foreign currency translation (696)
At 30 June 2024 31,331
Royalties due or received from royalty financial instruments (1,358)
Revaluation of royalty financial instruments recognised in profit or loss 3,497
Revaluation of royalty financial instruments recognised in equity (16)
Additions 8,852
Foreign currency translation (1,694)
At 31 December 2024 40,612
Royalties due or received from royalty financial instruments (1,581)
Revaluation of royalty financial instruments recognised in profit or loss 2,503
Revaluation of royalty financial instruments recognised in equity (15)
Reclassified as asset held for sale (note 1.5 and note 10) (9,000)
Foreign currency translation 1,743
At 30 June 2025 34,262
Refer to note 17 of the consolidated financial statements of the Group for the
year ended 31 December 2024 for the details and accounting classification of
the Group's royalty financial instruments.
At the reporting date, the fair value of the Group's investment in Labrador
Iron Ore Royalty Corporation has been determined by reference to the quoted
bid price of the instrument.
The Group's remaining royalty financial instruments are valued based on the
net present value of pre-tax cash flows discounted at a pre-tax nominal rate
between 10.5% and 13.0% (2024: 10.5% and 13.0%) at reporting date.
For those royalty financial instruments not in production, the outcome of this
net present value calculation is then risk weighted to reflect management's
current assessment of the overall likelihood and timing of each project coming
into production and royalty income arising. This assessment is impacted by
news flow relating to the underlying operation in the period, in conjunction
with management's assessment of the economic viability of the project based on
commodity price projections.
The table below outlines the discount rate and risk weighting applied in the
valuation of the Group's royalty financial instruments:
30 June 2025 31 December 2024
Discount Rate Risk Weighting Discount Rate Risk Weighting
EVBC 11.00% 100% 11.75% 100%
McLean Lake 10.50% 60% 10.50% 60%
Piaui 13.00% 42.5% - 100%(1) 13.00% 42.5%-100%(1)
Phalaborwa 12.50% 70% 12.50% 70%
(1) A risk weighting of 42.5% (2024: 42.5%) is applied to the probability of
Piaui's expanded 24Ktpa plant reaching commercial production, as compared to
the risk weighting of 100% (2024: 100%) applied to the 1Ktpa plant which has
already achieved production.
NOTES TO THE ACCOUNTS
8 Royalty and exploration intangible assets
30 June 2025 31 December 2024
$'000 $'000
Royalty interests 323,585 318,698
Gross carrying amount 323,585 318,698
Amortisation and impairment (73,850) (72,759)
Carrying amount 249,735 245,939
Impairments of royalty intangible assets
All intangible assets are assessed for indicators of impairment at each
reporting date. No impairment indicators have been identified for the six
month period ended 30 June 2025.
9 Trade and other receivables
30 June 2025 31 December 2024
$'000 $'000
Non-current
Denison financing agreement 11,900 12,930
Contingent consideration 5,307 4,765
Other receivables 136 125
17,343 17,820
Denison financing agreement
For the period ended 30 June 2025, the Group earned $0.6m in interest revenue
and received principal repayments of $1.6m (30 June 2024: $0.8m in interest
revenue and principal repayments of $1.7m).
Contingent consideration - West Musgrave
Under the West Musgrave royalty, the Group is entitled to a A$10m payment
contingent on commercial production being achieved at West Musgrave, which is
distinct from and separate to the net smelter return royalty and is accounted
for as a financial asset and measured at fair value through profit or loss
("FVTPL"). As at 30 June 2025, the fair value of the contingent consideration
receivable is $5.3m (31 December 2024: $4.8m).
30 June 2025 31 December 2024
$'000 $'000
Current
Income tax receivable - 173
Prepayments 426 465
Royalty receivables 6,859 3,779
Deferred consideration - 6,495
Contingent consideration - 4,965
Other receivables 418 291
7,703 16,168
Deferred and contingent consideration - Narrabri disposal
In 2025, the Group received $11.5m in a full and final settlement of the
deferred and contingent consideration owing from Whitehaven Coal Limited
following the disposal of the Narrabri royalty in 2021.
10 Asset held for sale
As at 30 June 2025, the Dugbe 1 royalty financial instrument has been
classified as an asset held for sale as set out in note 1.5 and has been
valued at $9.0m as at 30 June 2025 (31 December 2024: $5.9m presented within
royalty financial instruments - refer to note 7). Prior to classifying the
asset as an asset held for sale, a gain on revaluation of the royalty
financial instrument of $2.6m was recorded in the condensed consolidated
income statement.
NOTES TO THE ACCOUNTS
11 Borrowings
30 June 2025 31 December 2024
$'000 $'000
Secured borrowing at amortised cost
Revolving credit facility 132,559 90,228
132,559 90,228
In February 2025 the Group extended the maturity date of its revolving credit
facility by 12 months to 30 January 2028, increased the total commitments
under the facility to $180.0m by exercising $30.0m of the accordion feature
and amended the following key terms:
· Adjusted EBITDA to calculate the leverage and interest cover
ratios are calculated using annualised Kestrel income from the trailing six
quarters;
· The interest cover covenant has been reduced from 4.0x to 3.0x
for period to maturity;
· The facility will be subject to SOFR plus a ratchet between 2.25%
and 4.50%, depending on leverage levels; and
· The uncommitted accordion feature has reduced to $45.0m following
the $30.0m increase in total commitments under the facility.
Following the extension in February 2025, the Group has the option to extend
the facility by up to a further 12 months, subject to lender consent.
The Directors consider that the carrying amount of the Group's borrowings
approximates their fair value.
The Group's net debt position after offsetting interest bearing liabilities
against cash and cash equivalents is as follows:
30 June 2025 31 December 2024
$'000 $'000
Revolving credit facility (132,559) (90,228)
Cash and cash equivalents 7,944 7,876
Net debt (124,615) (82,352)
12 Deferred tax
The following is the analysis of the deferred tax balances (after offset) for
financial reporting purposes:
30 June 2025 31 December 2024
$'000 $'000
Deferred tax liabilities (15,221) (17,903)
Deferred tax assets 25,291 25,877
10,070 7,974
NOTES TO THE ACCOUNTS
The following are the major deferred tax liabilities/(assets) recognised by
the Group and the movements thereon during the period:
Revaluation Revaluation Accrual of
of coal of royalty royalty Other Tax
royalty instruments receivable revaluations losses Total
$'000 $'000 $'000 $'000 $'000 $'000
At 1 January 2024 23,206 (983) 882 1,200 (33,630) (9,325)
Charge/(credit) to profit or loss (7,157) 1,765 4,138 (451) 32 (1,673)
Credit to other comprehensive income - (69) - - - (69)
Partial disposal of LIORC recognised in equity - (211) - - - (211)
Exchange differences (621) 38 17 (33) (14) (613)
At 30 June 2024 15,428 540 5,037 716 (33,612) (11,891)
Charge/(credit) to profit or loss 233 400 (4,952) 450 8,964 5,095
Charge to other comprehensive income - 11 - - - 11
Exchange differences (1,041) (15) (47) (75) (11) (1,189)
At 31 December 2024 14,620 936 38 1,091 (24,659) (7,974)
Charge/(credit) to profit or loss (3,250) 672 924 (1,107) (71) (2,832)
Credit to other comprehensive income - (3) - - - (3)
Exchange differences 707 (2) 32 24 (22) 739
At 30 June 2025 12,077 1,603 994 8 (24,752) (10,070)
13 Trade and other payables
30 June 2025 31 December 2024
$'000 $'000
Non-current
Lease liability 2,565 2,565
Other taxation and social security payables 606 514
3,171 3,079
30 June 2025 31 December 2024
$'000 $'000
Current
Other taxation and social security payables 169 141
Trade payables 534 762
Accruals and other payables 3,789 2,553
Lease liability 501 501
Dividend payable (note 4) 2,762 -
7,755 3,957
NOTES TO THE ACCOUNTS
14 Share capital, share premium and merger reserve
Number of Share capital Share premium Merger reserve Total
shares $'000 $'000 $'000 $'000
Group and Company
Ordinary shares of 2p each at 1 January 2024 257,903,401 6,762 169,212 94,847 270,821
Share buy-back (a) (9,491,317) (239) - - (239)
Utilisation of shares held in treasury on exercise of employee options (b)
185,809 5 - - 5
Ordinary shares of 2p at 31 December 2024 248,597,893 6,528 169,212 94,847 270,587
Utilisation of shares held in treasury on exercise of employee options (c)
456,856 12 - - 12
Ordinary shares of 2p at 30 June 2025 249,054,749 6,540 169,212 94,847 270,599
(a) The Company acquired in aggregate 9,491,317 ordinary
shares of 2p each between 27 March 2024 and 30 May 2024 for a total
consideration of $10m under a share buy-back programme. The ordinary shares
repurchased under the programme are held in treasury.
(b) In the six months ended 30 June 2024, the Company
utilised 185,809 ordinary shares of 2p each from treasury, to settle awards to
employees under the Long-term Incentive Plan that had vested.
(c) In the six months ended 30 June 2025, the Company
utilised 456,856 ordinary shares of 2p each from treasury, to settle awards to
employees under the Long-term Incentive Plan that had vested.
As at 30 June 2025, the Group held 12,677,804 shares in treasury (31 December
2024: 13,134,660).
15 Segment information
The Group's chief operating decision maker is considered to be the Executive
Committee. The Executive Committee evaluates the financial performance of the
Group based on a portfolio view of its individual royalty arrangements.
Portfolio contribution (note 18) and its associated impact on operating profit
is the key focus of the Executive Committee. The income from the Group's
royalties and metal streams is presented based on the commodity exposure as
follows:
Cobalt: Voisey's
Bay
Copper: Nifty,
Mantos Blancos, Canariaco, Carlota, Santo Domingo, Vizcachitas and Mimbula
Nickel: West
Musgrave and Piauí
Steel-making materials: Kestrel, LIORC, Groundhog and Pilbara
Uranium: McClean Lake,
Four Mile and Salamanca
Other: Dugbe
1, Maracás Menchen, Ring of Fire, EVBC, Phalaborwa, Corporate and the Group's
mining and exploration interests
The following is an analysis of the Group's results by reportable segment. The
key segment result presented to the Executive Committee for making strategic
decisions and allocation of resources is operating profit as analysed below.
There have been no changes to the Group's operating segments since 31 December
2024. The comparative segment information for the six months ended 30 June
2024 has been restated to align with the Group's current reporting to the
Executive Committee.
NOTES TO THE ACCOUNTS
The segment information provided to the Executive Committee for the reportable
segments for the six months ended 30 June 2025 is as follows (noting that
total segment operating profit corresponds to operating profit before
revaluations on the face of the consolidated income statement):
Cobalt Steel-making Uranium All other
Copper Nickel
Royalties Royalties Royalties Royalties Royalties segments Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Portfolio contribution 4,096 4,576 - 3,462 3,192 2,541 17,867
Reconciliation to income statement:
Royalties due or received from royalty financial instruments - - - - - (1,581) (1,581)
Repayments under commodity related financing agreements - - - - (1,647) - (1,647)
Metal streams cost of sales 989 210 - - - - 1,199
Royalty and metal stream related revenue 5,085 4,786 - 3,462 1,545 960 15,838
Amortisation and depletion of royalties and streams (2,841) (1,484) - - (39) (196) (4,560)
Metal streams cost of sales (989) (210) - - - - (1,199)
Operating expenses (30) (36) (2) (60) (9) (6,217) (6,354)
Total segment operating profit/(loss) 1,225 3,056 (2) 3,402 1,497 (5,453) 3,725
Total segment assets 163,688 208,305 99,585 47,904 16,608 37,724 573,814
Reconciliation to the consolidated balance sheet:
Cash and cash equivalents 7,944
Assets held for sale 9,000
Total consolidated assets 590,758
Total assets include:
Additions to non-current assets (other than financial instruments and deferred - 51,123 - - - - 51,123
tax assets)
Total segment liabilities 243 - 2,127 13,107 - 12,810 28,287
Reconciliation to the consolidated balance sheet:
Borrowings 132,559
Total consolidated liabilities 160,846
Geographical information:
Australia Americas Europe All other
Royalties Royalties Royalties segments Total
$'000 $'000 $'000 $'000 $'000
Royalty and metal stream related revenue 4,339 10,595 - 904 15,838
Total non-current assets (other than financial instruments and deferred tax 126,475 302,588 - 55,969 485,032
assets)
NOTES TO THE ACCOUNTS
The segment information provided to the Executive Committee for the reportable
segments for the six months ended 30 June 2024 (restated) is as follows:
Cobalt Steel-making Uranium All other
Copper Nickel
Royalties Royalties Royalties Royalties Royalties segments Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Portfolio contribution 1,611 3,144 - 40,954 3,889 1,716 51,314
Reconciliation to income statement:
Royalties due or received from royalty financial instruments - - - - - (510) (510)
Repayments under commodity related financing agreements - - - - (1,714) - (1,714)
Metal streams cost of sales 368 - - - - - 368
Royalty and metal stream related revenue 1,979 3,144 - 40,954 2,175 1,206 49,458
Amortisation and depletion of royalties and streams (1,194) (1,477) - - (40) (360) (3,071)
Metal streams cost of sales (368) - - - - - (368)
Operating expenses (42) (20) - (485) (4) (5,213) (5,764)
Total segment operating profit/(loss) 375 1,647 - 40,469 2,131 (4,367) 40,255
Total segment assets 193,942 159,490 113,035 72,661 20,818 42,401 602,347
Reconciliation to the consolidated balance sheet:
Cash and cash equivalents 12,980
Total consolidated assets 615,327
Total assets include:
Additions to non-current assets (other than financial instruments and deferred - - - - - 4 4
tax assets)
Total segment liabilities - - 11,783 20,703 - 15,722 48,208
Reconciliation to the consolidated balance sheet:
Borrowings 98,962
Total consolidated liabilities 147,170
Geographical information:
Australia Americas Europe All other
Royalties Royalties Royalties segments Total
$'000 $'000 $'000 $'000 $'000
Royalty and metal stream related revenue 42,133 7,241 - 84 49,458
Total non-current assets (other than financial instruments and deferred tax 147,745 327,067 - 5,298 480,110
assets)
NOTES TO THE ACCOUNTS
The segment information for the twelve months ended 31 December 2024 is as
follows:
Cobalt Steel-making Uranium All other
Copper Nickel
Royalties Royalties Royalties Royalties Royalties segments Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Portfolio contribution 4,963 6,414 - 41,669 5,868 4,332 63,246
Reconciliation to income statement:
Royalties due or received from royalty financial instruments - - - - - (1,868) (1,868)
Repayments under commodity related financing agreements - - - - (2,984) - (2,984)
Metal streams cost of sales 1,214 - - - - - 1,214
Royalty and metal stream related revenue 6,177 6,414 - 41,669 2,884 2,464 59,608
Amortisation and depletion of royalties and streams (4,479) (2,626) - - (80) (723) (7,908)
Metal streams cost of sales (1,214) - - - - - (1,214)
Operating expenses (88) (46) (1) (1,143) 592 (10,324) (11,010)
Total segment operating profit/(loss) 396 3,742 (1) 40,526 3,396 (8,583) 39,476
Total segment assets 166,909 158,159 94,022 53,008 18,374 55,624 546,096
Reconciliation to the consolidated balance sheet:
Cash and cash equivalents 7,876
Total consolidated assets 553,972
Total assets include:
Additions to non-current assets (other than financial instruments and deferred - - - - - 4 4
tax assets)
Total segment liabilities 531 - 1,989 14,884 - 11,701 29,106
Reconciliation to the consolidated balance sheet:
Borrowings 90,228
Total consolidated liabilities 119,334
Geographical information:
Australia Americas Europe All other
Royalties Royalties Royalties segments Total
$'000 $'000 $'000 $'000 $'000
Royalty and metal stream related revenue 42,791 16,601 - 216 59,608
Total non-current assets (other than financial instruments and deferred tax 130,452 306,304 - 5,135 441,891
assets)
NOTES TO THE ACCOUNTS
The royalty and metal stream-related revenue for the six months ended 30 June
2025 from Voisey's Bay of $5.1m (2024: $2.0m), together with $0.8m from
Maracás Menchen (2024: $1.1m), $3.8m from Mantos Blancos (2024: $2.8m), $0.9m
from Four Mile (2024: $1.4m), $0.7m from Mimbula (2024: $nil) and $0.3m from
Carlota (2024: $0.4m), represents revenue recognised from contracts with
customers as defined by IFRS 15.
16 Free cash flow
The structure of a number of the Group's royalty financing arrangements, such
as the Denison transaction completed in February 2017, result in a significant
amount of cash flow being reported as principal repayments, which are not
included in the income statement. As the Group considers the dividend payout
by reference to the free cash flow generated by its assets, management have
determined that free cash flow per share is a key performance indicator.
Free cash flow per share is calculated by dividing 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, by the weighted average number of shares in issue. The free cash
flow per share for the period ended 30 June 2024 has been restated to exclude
the proceeds on disposal of non-core assets. This change is in line with the
definition of free cash flow, which is one of the Group's Key Performance
Indicators disclosed on page 22 and 23 of the 2024 Annual Report.
6 months ended Free cash flow
30 June 2025 per share
$'000 c
Net cash generated from operating activities
Net cash generated from operating activities for the period ended 30 June 2025 4,091
Adjustment for:
Finance income received 133
Finance costs paid (3,919)
Repayments under commodity related financing agreements 1,647
Free cash flow for the period ended 1,952 0.78c
6 months ended Free cash flow
30 June 2024 per share
$'000 c
(restated)
Net cash generated from operating activities
Net cash generated from operating activities for the period ended 30 June 2024 13,216
Adjustment for:
Finance income received 103
Finance costs paid (4,624)
Repayments under commodity related financing agreements 1,714
Free cash flow for the period ended 10,409 4.06c
The weighted average number of shares in issue for the purpose of calculating
the free cash flow per share is as follows:
30 June 2025 30 June 2024
Weighted average number of shares in issue 248,831,549 256,291,853
NOTES TO THE ACCOUNTS
17 Financial instruments
The Group held the following investments in financial instruments (this
includes investment properties):
30 June 2025 31 December 2024
$'000 $'000
Investment property (held at fair value)
Coal royalties (Kestrel) 40,259 48,735
Fair value through other comprehensive income
Royalty financial instruments 1,192 1,156
Mining and exploration interests 4,609 4,366
Fair value through profit or loss
Royalty financial instruments 42,070 39,456
Contingent consideration - receivable 5,307 6,470
Financial assets at amortised cost
Trade and other receivables 19,313 23,620
Contingent consideration - receivable - 3,260
Cash at bank and on hand 7,944 7,876
Financial liabilities at amortised cost
Trade and other payables 534 762
Borrowings 132,559 90,228
Lease liability 3,066 3,066
Royalty financial instruments measured at fair value through profit or loss
includes the Dugbe 1 royalty financial instrument classified as asset held for
sale (note 10).
Cash and cash equivalents comprise cash and short-term deposits held by the
Group treasury function. The carrying amount of these assets approximates
their fair value.
The Directors consider that the carrying amount of trade and other receivables
and trade and other payables approximates their fair value.
Fair value hierarchy
The following table presents financial assets and liabilities measured at fair
value in the statement of financial position in accordance with the fair value
hierarchy. This hierarchy groups financial assets and liabilities into three
levels based on the significance of inputs used in measuring the fair value of
the financial assets and liabilities. The fair value hierarchy has the
following levels:
· Level 1: quoted prices (unadjusted) in active markets for
identical assets and liabilities;
· Level 2: inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices); and
· Level 3: inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
The level within which the financial asset or liability is classified is
determined based on the lowest level of significant input to the fair value
measurement. The following tables present the Group's assets and liabilities
that are measured at fair value at 30 June 2025:
Level 1 Level 2 Level 3 Total
Group Notes $'000 $'000 $'000 $'000
Assets
Coal royalties (Kestrel) 5 - - 40,259 40,259
Royalty financial instruments 7, 10 1,192 - 42,070 43,262
Mining and exploration interests - quoted 2,210 - - 2,210
Mining and exploration interests - unquoted - 2,399 - 2,399
Contingent consideration - receivable 9 - - 5,307 5,307
Fair value 3,402 2,399 87,636 93,437
NOTES TO THE ACCOUNTS
The following tables present the Group's assets and liabilities that are
measured at fair value at 31 December 2024:
Level 1 Level 2 Level 3 Total
Group Notes $'000 $'000 $'000 $'000
Assets
Coal royalties (Kestrel) 5 - - 48,735 48,735
Royalty financial instruments 7 1,156 - 39,456 40,612
Mining and exploration interests - quoted 1,869 - - 1,869
Mining and exploration interests - unquoted - 2,497 - 2,497
Contingent consideration - receivable 9 - - 6,470 6,470
Fair value 3,025 2,497 94,661 100,183
There have been no significant transfers between Levels 1 and 2 in the
reporting period.
Fair value measurements in Level 3
The methods and valuation techniques used for the purposes of measuring fair
value of coal royalties, royalty financial instruments and contingent
consideration receivable remain as disclosed in note 33 of the consolidated
financial statements of the Group for the year ended 31 December 2024. A
description of the valuation process for Coal Royalties is provided in note 5
which describes the assumptions that the valuations are most sensitive to.
Note 7 describes the sensitive assumptions affecting the valuation of Royalty
financial instruments, alongside commodity price forecasts.
The Group's financial assets and liabilities classified in Level 3 uses
valuation techniques based on significant inputs that are not based on
observable market data.
The following table presents the changes in Level 3 instruments for the six
months ended 30 June 2025.
Royalty financial instruments Coal royalties (Kestrel) Contingent consideration - receivable Total
$'000 $'000 $'000 $'000
At 1 January 2025 39,456 48,735 6,470 94,661
Contingent consideration received - - (1,705) (1,705)
Revaluation gains or losses recognised in:
Income statement 2,503 (10,832) 269 (8,060)
Royalties due or received from royalty financial instruments (1,581) - - (1,581)
Foreign currency translation 1,692 2,356 273 4,321
At 30 June 2025 42,070 40,259 5,307 87,636
The following table presents the changes in Level 3 instruments for the year
ended 31 December 2024.
Royalty financial instruments Coal royalties (Kestrel) Contingent consideration - receivable Contingent consideration - acquisitions Total
$'000 $'000 $'000 $'000 $'000
At 1 January 2024 22,596 77,354 11,070 (11,115) 99,905
Contingent consideration received - - (2,120) - (2,120)
Revaluation gains or losses recognised in: -
Income statement 11,962 (23,079) (909) - (12,026)
Royalty intangible and metal stream - - - 10,118 10,118
Royalties due or received from royalty financial instruments (1,868) - - - (1,868)
Additions 8,852 8,852
Foreign currency translation (2,086) (5,540) (1,571) 997 (8,200)
At 31 December 2024 39,456 48,735 6,470 - 94,661
There have been no transfers into or out of Level 3 in any of the reporting
periods.
NOTES TO THE ACCOUNTS
18 Portfolio contribution
Portfolio contribution represents the funds received or receivable from the
Group's underlying royalty and stream related assets. A number of the
Group's royalty financing arrangements result in a significant amount of cash
flow being reported as principal repayments, which are not included in the
income statement. In addition, royalty receipts from those royalty financial
instruments classified as FVTPL such as EVBC, are reflected in the fair value
movement of the underlying royalty rather than recorded as royalty and stream
related revenue. The Group considers total portfolio contribution as a means
of assessing the overall performance of the Group's underlying royalty and
metal stream related assets.
Portfolio contribution is royalty and stream related revenue (note 2), less
metal stream cost of sales, plus royalties received or receivable from royalty
financial instruments carried at FVTPL and principal repayment received under
the Denison financing agreement (note 9) as follows:
Six months ended
30 June 2025 30 June 2024
$'000 $'000
Royalty and stream related revenue (note 2) 15,838 49,458
Royalties due or received from royalty financial instruments 1,581 510
Repayments under commodity related financing agreements (note 9) 1,647 1,714
Mineral streams cost of sales (1,199) (368)
17,867 51,314
Metal streams costs of sales includes the cost of cobalt purchases under the
Voisey's Bay stream agreement, marketing costs and insurance. The cost of
cobalt purchases is 18% of an industry cobalt reference price until the
original upfront amount paid for the stream, by its original holder, of $300m
is reduced to nil (through accumulating credit from 82% of the cobalt
reference price), increasing to 22% thereafter. Metal stream costs of sales
also includes the cost of copper purchases under the Mimbula stream agreement
at 30% of the London Metal Exchange quarterly average copper price, until the
original upfront amount paid for the stream of $50.0m is reduced to nil.
19 Events occurring after period end
Subsequent to the period end, negotiations commenced with Elemental Altus
Royalties Corp. ("Elemental") for the sale of the Dugbe 1 royalty carried at
fair value of $9.0m at 30 June 2025. On 1 September 2025, the Company entered
into a binding agreement to sell its wholly-owned subsidiary which holds the
Dugbe 1 royalty to Elemental for total consideration of up to $20m. The
consideration comprises of an upfront cash payment of $16.5m on completion and
contingent consideration of up to $3.5m, subject to meeting operational
milestones. This transaction will result in a gain on disposal which will be
recognised in the second half of 2025.
On 2 September 2025, the Board have approved an interim dividend of 0.60 cents
per share for the first six months of 2025, which equates to ~25% of the
average free cash flow, in line with the 25-35% payout range under the Group's
capital allocation policy. The 2025 interim dividend will be paid on 30
January 2026, to all shareholders on the Register of Members on 9 January
2026.
20 Availability of financial statements
This statement will be sent to shareholders and will be available at the
Group's registered office at Kent House, 3(rd) Floor North, 14-17 Market
Place, London W1W 8AJ.
Responsibility statement
The Directors are responsible for preparing the Interim Results for the six
months ended 30 June 2025 in accordance with applicable law, regulations and
accounting standards. In preparing the condensed interim Financial Statements,
the Directors are responsible for ensuring that they give a true and fair view
of the state of affairs of the Group at the end of the period and the profit
or loss of the Group for that period, as required by DTR 4.2.4R.
The Directors confirm that the condensed interim Financial Statements have
been prepared in accordance with United Kingdom adopted IAS 34 'Interim
Financial Reporting' and that the Interim Results include a fair review of the
information required by DTR 4.2.7R and DTR 4.2.8R, namely:
· an indication of important events that have occurred during the
first six months and their impact on the condensed interim Financial
Statements, and a description of principal risks and uncertainties for the
remaining six months of the financial year; and
· material related party transactions for the first six months of
the year and any material changes in the related party transactions described
in the last annual report.
The Directors are listed in the Group's 2024 Annual Report and Accounts. A
list of the current Directors is maintained on the Ecora Resources PLC
website: www.ecora-resources.com. The maintenance and integrity of this
website is the responsibility of the Directors.
On behalf of the Board
M. Bishop Lafleche
Chief Executive Officer
2 September 2025
INDEPENDENT REVIEW REPORT TO ECORA RESOURCES PLC
Conclusion
We have been engaged by the Company to review the condensed set of financial
statements in the half yearly financial report for the six months ended 30
June 2025 which comprises the Condensed Consolidated Income Statement,
Condensed Consolidated Statement of Comprehensive Income, Condensed
Consolidated Balance Sheet, Condensed Consolidated Statement of Changes in
Equity, Condensed Consolidated Statement of Cash Flows and the related notes 1
to 20. We have read the other information contained in the half yearly
financial report and considered whether it contains any apparent misstatements
or material inconsistencies with the information in the condensed set of
financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information consists of
making inquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half yearly financial report, the directors are responsible
for assessing the Group's ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the
Company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our Conclusions
relating to going concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for conclusion paragraph of
this report.
INDEPENDENT REVIEW REPORT TO ECORA RESOURCES PLC
Use of our report
This report is made solely to the Company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the Company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
London
2 September 2025
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