Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF)' royalty income dropped in its latest half-year as its coal earnings returned to more normal levels after the Ukraine war-inspired bumper returns seen 12 months ago.
Income was US$14.7mln (US$29.6mln) for the second quarter of 2023 and US$44.3mln (US$92.8mln) for the half year as Kestrel, a coking coal operation in Australia, saw prices and volumes fall back from record levels.
Saleable production volumes within Ecora's Kestrel royalty areas were 0.5mt (2023: 0.9mt).
Ecora added that the majority of production within the group's royalty land will be delayed until the first quarter of 2024, rather than late in 2023.
In cobalt, attributable deliveries under the Voisey's Bay stream totalled 42t at an average sales price of approximately $16/lb.
Operator Vale recently stated that Voisey's Bay continues to be impacted by the ongoing transition period between the depletion of the Ovoid mine and the ramp-up to full production of its underground project.
Vale’s current guidance is that Ecora will receive four to five deliveries of cobalt, bringing the total number of deliveries anticipated for the year to 10-11, compared to previous expectations of between 13-15.
In copper, the West Musgrave project over which Ecora has a 2% net smelter return (NSR) entitlement has a first production target remaining in late 2025, while Brazilian Nickel raised US$30mln during the quarter to fund the continued development of the Piauí nickel-cobalt project.
Overall, Ecora said commodity prices throughout its royalty portfolio softened during the period, although broadly remain at historically strong levels.
Net debt on 30 June was US$43mln though since the year-end Ecora has acquired a royalty over the Vizcachitas copper project in Chile.
Marc Bishop Lafleche, chief executive, commented that the portfolio performed "solidly" in the second quarter reflecting its growing diversity.
He added that updates are expected shortly on the progress of construction of West Musgrave, the construction financing options for the Piauí Nickel project and feasibility studies from Capstone Copper in relation to the Santo Domingo project as well as a potential Mantos Blancos Phase II production expansion.
"The group remains firmly focused on growth, both organically and by way of acquisitions, with the latest acquisition of a royalty over the Vizcachitas project complementing Ecora's sector-leading copper growth pipeline."