REG - Ecora Resources PLC - Q1 2025 Trading Update

Ecora ResourcesAnnouncement

23/04/2025 07:00

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RNS Number : 7286F  Ecora Resources PLC  23 April 2025

 

23 April 2025

 

Ecora Resources PLC

("Ecora" or the "Group")

 

Q1 2025 Trading Update

 

Ecora Resources PLC (LSE/TSX: ECOR, OTCQX: ECRAF) issues the following trading
update for the period 1 January to 31 March 2025.

 

Marc Bishop Lafleche, Chief Executive Officer of Ecora, commented:

 

"The Group reported a solid start to the year with a Q1 portfolio contribution
of $6.0m. Looking ahead to Q2 we expect volume growth to come through more
strongly with mining at Kestrel returning to the Group's private royalty area;
an increased number of cobalt deliveries from Voisey's Bay expected to benefit
from the current higher price environment; Four Mile royalty contributions
resuming; and the first revenue contribution from the Mimbula copper stream."

 

Highlights:

·     Portfolio contribution of $6.0m (Q4 2024: $6.7m) down primarily as
a result of the timing of cobalt deliveries from Voisey's Bay

·     Voisey's Bay continues to ramp up post-completion of the underground
mine expansion project:

o  56 tonnes of cobalt received during Q1 generating $1.3m (Q4 2024: $2.3m)
at an average realised price of $13.28/lb

o  Further 28 tonnes received to date in Q2 2025 at an average realised price
of $18.63/lb;

o  40% increase in realised price of cobalt sold in Q2 to date vs Q1 reflects
the increase in cobalt prices since early March following the Government of
the Democratic Republic of Congo announcing a cobalt export ban

o  FY guidance unchanged at 335-390 tonnes of cobalt attributable to Ecora;
expected to be c. 60% weighted to H2 as production from underground mine
continues to ramp up

·     Mantos Blancos delivered a second consecutive record quarterly
portfolio contribution of $1.8m (Q4 2024: $1.7m) following the successful
completion of a debottlenecking project in H2 2024

·     Acquired a copper stream over the producing Mimbula copper mine for
$50m:

o  Ecora's initial copper entitlement in Q1 (post transaction) of 75.0 tonnes

o  Revenue will be recognised in Q2 when the copper units are received and
sold

·     EVBC benefited from high gold prices and generated a portfolio
contribution of $0.8m (Q4 2024: $0.7m)

·     Four Mile portfolio contribution of $0.1m (Q4 2024: nil), not yet
reflecting the return to normalised sales volumes during Q1 as revenue
reporting lags a quarter

·     Kestrel operations remained outside of the Group's private royalty
area for the majority of Q1 with the Group's 2025 volumes expected to be
weighted to Q2 and Q3

·     Agreement reached with Whitehaven Coal under which the Group
received $6.2m as an acceleration of all outstanding payments, including
contingent and deferred consideration, with respect to the sale of the
Narrabri thermal coal royalty

·     Increased, amended and extended the Group's revolving credit
facility resulting in total commitments increasing by $30m to $180m and the
maturity being extended 12 months to end January 2028

·     Net debt at 31 March 2025 of $125.9m (31 December 2024: $82.3m)

 

 Portfolio contribution:          Q1 2025  Q4 2024         Q1 2024
                                  $m       $m       Q/Q    $m
 Base metals
 Mantos Blancos (copper)          1.8      1.7             1.3
 Voisey's Bay (cobalt)            1.6      2.8             1.0
 Carlota (copper)                 0.2      0.2             0.1
 Sub-total                        3.6      4.7      (23%)  2.4

 Speciality metals & uranium
 McClean Lake((1)) (uranium)      1.2      0.8             1.1
 Maracás Menchen (vanadium)       0.4      0.7             0.7
 Four Mile (uranium)              0.1      -               0.7
 Sub-total                        1.7      1.5      13%    2.5

 Bulks & other
 Kestrel (steelmaking coal)       0.1      0.2             14.5
 EVBC((2)) (gold)                 0.8      0.7             0.2
 Other                            0.1      0.1             0.1
 Sub-total                        1.0      1.0      -      14.8

 Less:
 Metal stream cost of sales((3))  (0.3)    (0.5)           (0.2)
 Total portfolio contribution     6.0      6.7      (10%)  19.5

( )

(1)In Q1 2025, principal repayment totalled US$0.9m and interest received
totalled US$0.3m

(2)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

(3)Includes ongoing metal purchase costs under stream agreements

 

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)

 

About Ecora Resources

 

Ecora Resources is a leading royalty company focused on supporting the supply
of commodities essential to creating a sustainable future.

 

Our vision is to be globally recognised as the royalty company of choice
synonymous with commodities that support a sustainable future by continuing to
grow and diversify our royalty portfolio in line with our strategy. We will
achieve this through building a diversified portfolio of scale over high
quality assets that drives low volatility earnings growth and shareholder
returns.

 

The mining sector has an essential role to play in the energy transition, with
commodities such as copper, nickel and cobalt - key materials for
manufacturing batteries and electric vehicles. Copper also plays a critical
role in our electricity grids. All these commodities are mined and there are
not enough mines in operation today to supply the volume required to achieve
the energy transition.

 

Our strategy is to acquire royalties and streams over low-cost operations and
projects with strong management teams, in well-established mining
jurisdictions. Our portfolio has been reweighted to provide material exposure
to this commodity basket and we have successfully transitioned from a coal
orientated royalty business in 2014 to one that by 2026 will be materially
coal free and comprised of over 90% exposure to commodities that support a
sustainable future. The fundamental demand outlook for these commodities over
the next decade is very strong, which should significantly increase the value
of our royalty portfolio.

 

Ecora's shares are listed on the London and Toronto Stock Exchanges (ECOR) and
trade on the OTCQX Best Market (OTCQX: ECRAF).

 

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.

 

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