Q2 2024 Trading Update

Ecora Resources PLC (LSE/TSX: ECOR) issues the following trading update for the period 1 April to 30 June 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 volume growth in 2024 and 2025 from its currently producing royalty portfolio with an extensive pipeline of high-quality development projects that are expected to drive material medium term revenue growth.

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

"We are pleased to have substantially beaten market expectations in the first half of the year. Kestrel was the primary contributor; in the second half we expect to see an increase in the number of deliveries from Voisey's Bay as the underground operations have started the ramp-up towards steady state production levels which should be achieved in 2026. Although a weak nickel price environment has resulted in BHP pausing the construction of the West Musgrave nickel-copper project, we remain confident in the project's potential as a low-cost operation over a 25 year mine life with the possibility of further extension.

"Further to our recent Phalaborwa rare earths royalty acquisition, we continue to see opportunities to diversify and grow our royalty portfolio in line with our stated investment criteria and will balance growth with the maintenance of a strong balance sheet."

Highlights:

• US$31.8 million portfolio contribution for Q2 2024, up 63% on Q1 2024 due to higher than expected saleable production volumes in the Group's private royalty area at Kestrel, with the rest of the portfolio performing in line with expectations.
• US$51.3 million portfolio contribution for H1 2024 (H1 2023: US$44.5 million) driven mainly by sales volumes at Kestrel of 2.0Mt, at the top end of guidance for FY 2024.
• Q2 2024 saleable production volumes within the Group's private royalty area at Kestrel totalled 1.3Mt, generating royalty income of US$26.3 million.
• Two cobalt deliveries from Voisey's Bay were received during the period, at an average realised sales price of US$16/lb, taking the number of deliveries received in H1 to four:

o FY guidance remains unchanged at 12-16 deliveries of cobalt (each delivery being a 20t lot of which 70% is attributable to the Group)

o Vale has provided guidance that underground production at Voisey's Bay has started to ramp up and is expected to reach steady state production levels in 2026, at which point Ecora expects to receive c. 40 deliveries of cobalt per annum on a life-of-mine average basis

• Final investment decision ('FID') to construct the Piauí project by Brazilian Nickel is not expected before 2025, which would trigger the Group's right, but not obligation, to invest a further US$62.5 million to part fund the construction of the project. This investment would increase the royalty rate from 1.60% to 4.25%.
• The Group continues to expect year-on-year production volume growth at operations underlying its producing royalty portfolio in 2024 and 2025.
• Realised CA$11 million from selling down a portion of its Labrador Iron Ore Royalty Corporation investment; Ecora now holds a total of 57,390 shares.
• Completed the US$10 million share buyback acquiring a total of 9,491,317 ordinary shares at a volume weighted price of approximately 83.77 pence per share.
• Net debt as at 30 June of US$86 million; expected to reduce meaningfully in the next 18 months (absent acquisitions, assuming current commodity prices and operator volume guidance).

Post-period end events

• On 1 July 2024, the Group announced the acquisition of a 0.85% Gross Revenue Royalty (GRR) over the Phalaborwa rare earths project located in South Africa, operated by Rainbow Rare Earths, for a cash consideration of US$8.5 million1. This is one the highest quality rare earths projects globally and is expected to generate strong cashflows throughout the commodity cycle with production targeted to commence in 2027. Ecora also subscribed for US$1.5 million of shares in Rainbow Rare Earths.
• On 11 July 2024, BHP announced that it will temporarily suspend the construction of the West Musgrave project in October 2024, with the decision to be reviewed by February 2027.
• Capstone Copper is anticipated to release an updated feasibility study on the Santo Domingo copper project in the coming weeks. This is expected to provide an updated technical study and economics for the project along with a timeline to FID.

1Transaction is conditional upon receipt of exchange control authorisation from the South African Reserve Bank Financial Surveillance Department (customary for transactions of this nature), expected within 6 to 8 weeks of submitting the application.