6 March 2024
Ecora Resources
PLC
("Ecora"
or the "Company")
Portfolio
Update
Ecora Resources PLC (LSE/TSX: ECOR),
the leading royalty company focused on supporting the supply of
commodities essential to creating a sustainable future, issues a
portfolio update following the recent public market updates
provided by the operators of key projects in Ecora's royalty and
stream portfolio.
The Company continues to expect
volume growth in 2024 at operations underlying its producing
royalty portfolio which, at current commodity price levels, would
imply year-on-year portfolio contribution growth. In addition,
Ecora's near-term development royalties are poised for significant
de-risking events in the year ahead.
Producing
royalties
Voisey's Bay (Operator: Vale)
Vale announced that the Voisey's Bay
underground project was more than 90% complete as of December 2023.
Vale continues to anticipate ore mined at the underground Reid
Brook and Eastern Deeps ore bodies to ramp-up during the course of
2024, with the Eastern Deeps main production start-up expected to
occur in the second half of this year. Ecora continues to
expect to receive between 12 and 16 deliveries of cobalt during
2024 (each delivery is 20 tonnes of which 70% is attributable to
Ecora).
Mantos Blancos (Operator: Capstone Copper)
Production for the full year is
forecast to be in line with Ecora's expectations at 49-57kt.
Capstone stated that during the first half of 2024 it intends to
install the necessary equipment to remove bottlenecks between major
components of the Mantos Blancos processing circuit. Following
which Capstone expects the mine to operate at nameplate throughput
rates of 7.3mtpa and subsequently intends to recommence studies
related to Mantos Blancos Phase 2 expansion.
Iron Ore Company of Canada (Operator: Rio
Tinto)
The Iron Ore Company of Canada (IOC)
has been awarded C$18.1million from the Government of Canada's Low
Carbon Economy Fund to support the decarbonisation of the
production of iron ore concentrate and iron ore pellets. IOC's
cumulative greenhouse gas emissions are expected to be reduced by
9% over the life of the project.
Operator Production
Guidance
Mine
|
Operator
|
Commodity
|
Production
|
2024
(Forecast)
|
2023
|
2022
|
Kestrel (production within Ecora's
private royalty area) (1)
|
Adaro /
EMR Capital
|
Steel
making coal
|
1.8-2.0
mt
|
1.6
mt
|
4.1
mt
|
Mantos
Blancos (2)
|
Capstone
Copper
|
Copper
|
49 - 57
kt4
|
49.5
kt
|
41.2
kt
|
Voisey's Bay
(3)
|
Vale
|
Cobalt
|
240 - 320
t
|
220
t
|
380
t
|
Maracás Menchen
(4)
|
Largo
Resources
|
Vanadium
|
8.7 -
10.7 kt
|
9.4
kt
|
10.0
kt
|
Cigar Lake (5)
|
Cameco
|
Uranium
|
18
Mlbs
|
15.1
Mlbs
|
18
Mlbs
|
Four Mile (6)
|
Quasar
Resources
|
Uranium
|
4.5 - 5.0
Mlbs
|
5.0
Mlbs
|
4.9
Mlbs
|
1. Implied Kestrel 2024 production within Ecora's
private royalty area based on 2023 production volumes as per Ecora
trading update issued on 31 January.
2. Mantos Blancos 2024 production guidance as per
Capstone Copper Q4 2023 results announcement issued on 22 February
2024.
3. Voisey's Bay 2024 cobalt deliveries as per
Ecora trading update issued on 31 January. Ecora attributable
interest of 70% of cobalt deliveries under the Voisey's Bay
stream.
4. Maracás Menchen 2024 production guidance as per
Largo Resources FY 2023 Operational and Sales results announcement
issued on 23 January 2024.
5. Cigar Lake 2024 production guidance as per
Cameco 2023 Q4 results announcement issued on 8 February
2024.
6. Four Mile 2024 production guidance calculated
with reference to 2022 and 2023 historical uranium production and
sales volumes.
Development
portfolio
Santo Domingo (Operator: Capstone Copper)
Capstone is expecting to release an
updated Santo Domingo Feasibility Study during the first half of
2024. The original 2018 Feasibility Study contemplated a
stand-alone operation and will be updated to reflect synergies
expected to arise from Capstone's nearby Mantoverde mine where a
brownfield expansion was completed at the end of 2023. Capstone is
targeting a final investment decision to construct the Santo
Domingo project in H2 2025.
West Musgrave (Operator: BHP)
The West Musgrave project's
economics remain robust, with BHP stating that the operation could
generate reasonable returns despite a weak nickel price environment
and assuming lower forward prices for nickel. However, as BHP
studies a potential move into care and maintenance for Nickel West,
it will consider the merits of phasing the remaining West Musgrave
construction capital expenditure. The West Musgrave project is
currently 21% complete, and first copper and nickel production had
previously been targeted between Q4 2025 and calendar year
2026.
Piauí (Operator: Brazilian Nickel)
Brazilian Nickel Limited continues
to progress construction financing workstreams, including debt and
equity funding. Detailed engineering activities are underway, and
the Brazilian Nickel project team has been expanded to include a
Chief Sustainability Officer with over 25 years' experience, most
recently at Vale Base Metals, and Chief People Officer with 17
years of experience, much of it in the mining sector.
The Piauí project, located in the Brazilian state of Piauí, is a low-cost
heap leaching nickel and cobalt project, expected to produce 27
ktpa of nickel and 1 ktpa of cobalt credit during the initial 10
years of operation.
For further information:
Ecora Resources PLC
|
+44 (0) 20 3435
7400
|
Geoff Callow - Head of Investor
Relations
|
|
|
|
Camarco
Gordon Poole / Owen Roberts / Elfie
Kent
|
+44 (0) 20 3757
4997
|
Website:
|
www.ecora-resources.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) 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',
'should', 'would' and 'could'. 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 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, steams and investments from a global
pandemic; 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.
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, steams and investments subject to other
rights, and contractual terms not being honoured, together with
those risks identified in the '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.
Forward-looking statements 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. Forward-looking statements are not guarantees of
future performance and involve risks, uncertainties and
assumptions, that may be general or specific which could cause
actual results to differ materially from those forecast,
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. 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. No
statement in this communication is intended to be, nor should it be
construed as, a profit forecast or a profit estimate.
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.