Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF) chief executive Marc Bishop Lafleche told investors that the royalties investor is expecting year-on-year volume growth across the producing portfolio in 2024 and 2025 – which in turn will see higher cash returns from its royalties.
"Against a backdrop of shifting markets, we're pleased to have achieved a set of results in line with expectations, underlining the robustness of our business at every point of the commodity cycle,” he said in today’s full-year results statement.
The company reported a portfolio contribution of $63.6 million for the year. It marked a reduction $143.2 million in the previous year, due to lower commodity prices and reduced production levels at one project.
Royalty and metal stream-related revenue stood at $61.9 million, and the company reported a profit before tax of $4.6 million.
New projects coming online will deliver meaningful returns to Ecora, rewarding the firm for its investments in recent years.
“We also expect our operating partners to provide further updates on the timeline to first production from our near-term development royalties, which combined with our currently producing royalties, have the potential to generate a portfolio contribution annual run-rate in excess of $100 million,” Bishop Lafleche said.
He also highlighted an opportunity for the company to close the value discount, as Ecora launched a share buyback programme of up to $10 million.
"Cyclical market lows present an opportunity for Ecora to buy back its shares which are currently trading at a substantial discount to NAV,” he said.
"We [also] remain in a strong position to acquire royalties that further diversify and grow our business to deliver long-term sustainable returns and to align with society's shift towards a low-carbon economy."