Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF) benefitted from stronger coking coal prices in the first quarter of 2023, with portfolio contributions increasing 66% to US$29.6mln (£23.8mln) compared to the previous quarter, according to the company’s latest trading update.
Higher saleable production from the Kestrel coal mine in Queensland, Australia, with around 850,000 tonnes derived from the group's private royalty area, also helped.
Ecora is also seeing a positive impact from higher copper, vanadium and uranium prices, while cobalt prices recovered from a low of US$15.6 per pound in February to US$17 per pound in April.
Operational highlights in the period saw Ecora continuing construction of the West Musgrave copper-nickel mine in Western Australia, while the BHP takeover of OZ Minerals, which operates the West Musgrave mine, is confirmed to complete on 2 May.
Three cobalt deliveries were received from Voisey's Bay in Canada during the period at an average realised sale price of US$17 a pound. Transition to Voisey's Bay underground mining activities is progressing on schedule for ramp-up in 2024.
Ecora noted that planned maintenance operations scheduled for the second quarter will impact production at Voisey's Bay with the calendar year 2023 cobalt deliveries substantially weighted to the second half.
The Maracás Menchen ilmenite concentration plant in Brazil is scheduled to complete in the current quarter, with first sales expected in 2024.
Ecora’s net debt as at 31 March was US$35mln.