Q1 2024 Trading Update
Q1 portfolio contribution of $19.5m, up 117% QoQ, driven by Kestrel operations returning to royalty area.
vs expectations: in line
- Portfolio contribution $19.5m (prior $9.0m)
- Kestrel saleable production volumes 660kt
- Net debt $87m
- Voisey's Bay cobalt deliveries 2
- Voisey's Bay average realised cobalt price $16.0/lb
- FY 2024 Kestrel production guidance 15-25% increase on FY 2023 (1.6Mt)
Select text to share a quote on X · sign in to keep highlights & notes in your ECOR notes
Ecora Resources PLC (LSE/TSX: ECOR) issues the following trading update for the period 1 January to 31 March 2024.
Ecora is the leading royalty company focused on supporting the supply of industrial commodities essential to creating a sustainable future. The Group has a portfolio which combines near term volume growth in 2024 and 2025 from its producing royalty portfolio with a pipeline of development projects that are expected to drive material medium term revenue growth.
Marc Bishop Lafleche, Chief Executive Officer of Ecora, commented:
"The portfolio performed in line with expectation, production at Kestrel returned to our private royalty area driving a 117% increase in portfolio contribution compared to Q4 23 ($19.5m vs $9m)(1). Mining at Kestrel is expected to remain within the bounds of our royalty area throughout the quarter which should underpin a strong H1.
"We are keeping a close eye on the progress of the ramp up at Voisey's Bay, the publication of the Santo Domingo Feasibility Study and the development plan for the West Musgrave nickel-copper project."
Highlights:
- Portfolio contribution of $19.5 million, up 117% on Q4 23(1) primarily due to operations at Kestrel moving back within the Group's private royalty area, with the rest of the portfolio producing volumes in line with expectations.
- Saleable production volumes within the Group's private royalty lands at Kestrel totalled 660kt. FY 2024 guidance remains unchanged at a 15-25% increase on FY 2023 (1.6Mt), with the majority of royalty receipts expected to be in H1.
- Two cobalt deliveries from Voisey's Bay during the period at an average realised sales price of $16.0/lb. FY guidance remains unchanged at 12-16 deliveries of cobalt subject to scheduled ramp of underground activity in H2.
- On 18 April, BHP stated that the results of a review into the potential phasing and capital spend for the West Musgrave development project will be announced in August 2024.
- Capstone Copper is scheduled to release the updated Santo Domingo Feasibility Study during the first half of 2024.
- Continue to expect year on year production volume growth at operations underlying producing royalty portfolio in 2024 and 2025.
- Net debt at 31 March was $87 million, providing the balance sheet flexibility to pursue further growth.
- Excludes $5.4m of accrued income released to the income statement following the favourable Four Mile judgment announced on 4 December 2023.
| Portfolio contribution (1) | Q1 2024 | Q4 2023 | Q1 2023 | |
|---|---|---|---|---|
| $m | QoQ | $m | $m | |
| Core portfolio | ||||
| Voisey's Bay (cobalt) | 1.0 | (50%) | 2.0 | 1.6 |
| Mantos Blancos (copper) | 1.3 | (7%) | 1.4 | 1.8 |
| Maracás Menchen (vanadium) | 0.7 | - | 0.7 | 0.9 |
| Four Mile (uranium) (1) | 0.7 | 40% | 0.5 | 0.4 |
| Other (copper) | 0.1 | (50%) | 0.2 | 0.1 |
| Royalty and stream income | 3.8 | (21%) | 4.8 | 4.8 |
| Dividends - LIORC & Flowstream | 0.1 | (50%) | 0.2 | 0.4 |
| Interest - McClean Lake | 0.4 | - | 0.4 | 0.5 |
| Royalty and stream related revenue | 4.3 | (20%) | 5.4 | 5.7 |
| EVBC (2) | 0.2 | 100% | 0.1 | 0.7 |
| Principal repayment - McClean Lake | 0.7 | 40% | 0.5 | 0.7 |
| Less: | ||||
| Metal streams cost of sales | (0.2) | (60%) | (0.5) | (0.4) |
| Total portfolio contribution from core assets | 5.0 | (9%) | 5.5 | 6.7 |
| Near term run-off portfolio | ||||
| Kestrel (steel making coal) | 14.5 | 314% | 3.5 | 22.9 |
| Total near term run-off portfolio | 14.5 | 314% | 3.5 | 22.9 |
| Total portfolio contribution | 19.5 | 117% | 9.0 | 29.6 |
- Excludes $5.4m of accrued income released to the income statement following the favourable Four Mile judgment announced on 4 December 2023
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.