Q3 2023 Trading Update

Ecora Resources PLC (LSE/TSX: ECOR) issues the following trading update for the period 1 July to 30 September 2023.

Highlights:

• Portfolio contribution of $5.8 million (Q2 2023: $14.7 million) as Kestrel operations were mainly outside the Group's private royalty area and there was maintenance at Voisey's Bay.
• Commodity prices underpinning Ecora's royalty portfolio were broadly flat throughout the period with copper averaging $3.80/lb and alloy grade cobalt averaging $17.84/lb.
• The majority of Q3 saleable production at Kestrel was, as expected, outside the Group's royalty land with c. 60,000 tonnes from within the Group's royalty area. Production is expected to move back inside the Group's royalty area towards the end of Q4 driving a material increase in volume in H1 2024.
• A maintenance period at the Long Harbour refinery restricted deliveries under the Voisey's Bay cobalt stream to 14 tonnes during the period (one 20 tonne delivery of which 70% is attributable to the Group), realising an average sales price of approximately $15/lb. Three deliveries are scheduled for Q4 which would result in 10-11 deliveries for FY 2023, in line with guidance, before an anticipated ramp up in 2024.
• Capstone Copper announced on 2 August that it expects Mantos Blancos to deliver higher throughput rates in the second half of 2023 and to be fully ramped up to capacity of ~20,000 tonnes per day at year end.
• Ecora and Orovalle reached an agreement relating to the royalty over the EVBC mine whereby Orovalle has agreed to pay the outstanding royalty amounts for Q3 2022 and Q4 2022 totalling $1.5m in full, before applying a new ratchet structure linked to the gold price from 1 January 2023, that will see the applicable royalty increase from a minimum 0.5% where the gold price is <$1,800/oz up to 3.0% where the gold price is <$2,500/oz1.
• In August the Group completed the acquisition of a 0.25% NSR royalty over the Vizcachitas copper project in Chile, one of the largest undeveloped copper projects in the world, giving the Group a copper growth pipeline extending well into the next decade.
• The Group expects a number of key growth milestones to be achieved in its near-term development portfolio including progress on construction of West Musgrave, construction financing options for the Piauí nickel project and feasibility studies in relation to the Santo Domingo project.
• Net debt of $68 million as at 30 September 2023, excluding a $9.2 million payment to South32 in early October. The final $9.2 million deferred consideration instalment to South32 will be paid in January 2024.

1EVBC was previously a 2.5% NSR royalty which increased to 3.0% when the gold price exceeded $1,100 per ounce

• The previous estimate of $1.2 million for HY 2023 has been reduced to reflect the revised royalty rate resulting in total royalties for HY 2023 of $0.4 million

Marc Bishop Lafleche, Chief Executive Officer of the Company, commented:

"The third quarter was very much in line with our expectations and reflective of the transition phase of the portfolio. We can expect to see income volatility as mining at Kestrel moves in and out of the private royalty area, and our latest information would suggest the next material volumes are due to come in Q1 24. Steelmaking coal has been one of the stand out commodity performers in FY 23 and should prices remain elevated this would boost earnings in FY 24. We hope to see some positive news flow from our other portfolio assets during the remainder of the year.

"The Group remains strongly focussed on growth, both organically and through new royalty acquisitions and we were delighted to add a royalty over the Vizcachitas project to our leading copper royalty growth portfolio which complements the growth we expect in the coming years from both nickel and cobalt."