LONDON - Ecora Resources PLC (LSE/TSX: ECOR), a leading royalty company in the industrial commodities sector, has reported a 15% year-over-year increase in its portfolio contribution for the nine months ending September 30, 2024, totaling US$56.8 million. This includes a Q3 2024 contribution of US$5.2 million, despite a slight decrease from Q3 2023's US$5.8 million.
The company's CEO, Marc Bishop Lafleche, highlighted the ramp-up of underground operations at Voisey's Bay, noting that H2 deliveries are set to at least double those in H1. Cobalt deliveries are expected to rise through 2025, with Voisey's Bay projected to reach full production in 2026, potentially capitalizing on a cobalt price recovery.
Ecora's core portfolio, excluding Kestrel, contributed US$5.0 million in Q3, with Kestrel production anticipated to return to Ecora's royalty area in the first half of 2025. The ramp-up at Voisey's Bay resulted in four cobalt deliveries during the quarter, with sales averaging $11.4 per pound.
The company also completed the acquisition of a 0.85% Gross Revenue Royalty over the Phalaborwa rare earths project in South Africa and noted Capstone Copper's updated Feasibility Study for the Santo Domingo project, which confirms its potential as a low-cost copper mine.
Other portfolio updates include Largo Resources (NASDAQ:LGO)' 42% increase in V205 production, the temporary suspension of BHP's West Musgrave project construction, and Cyprium Metals' US$27.3 million offtake agreement with Glencore (OTC:GLNCY) plc.
Looking ahead, Ecora expects Voisey's Bay underground production to continue ramping up, with 8-12 deliveries expected in H2 2024 and 20-28 in 2025, aiming for a life-of-mine average of 40 deliveries per annum when fully operational. Mantos Blancos copper production is also expected to increase following scheduled maintenance.
The Group's net debt stood at US$85.5 million as of September 30, 2024, with expectations of a meaningful reduction over the next 18 months, assuming current commodity prices and production guidance.
This update is based on a press release statement from Ecora Resources PLC.
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