Shares in Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF) are "cheap", said broker Peel Hunt in a short note following an update on a project over which Ecora has a royalty agreement.
Peel picked up on the news from Capstone Copper, which on Tuesday announced the production of the first saleable concentrate from the Mantoverde operation, that would process ore from the Santo Domingo copper-iron-gold deposits "in due course".
The broker pointed out that Ecora could earn $25-$30 million annually from its 2% royalty over the Santo Domingo project starting in 2028.
Peel welcomed the news that the Santo Domingo feasibility study remains on track as it will provide clearer timelines for the project's development and Ecora's first income from it.
"We continue to view Ecora's shares as cheap," the broker added. "Currently, they are trading at the lowest P/B [price-to-book] ratio (0.5x) in over a decade and are pricing in just 18% of the value of its development portfolio (worth 102p on our calculations)."
Peel says 'buy' up to 155p. The stock is currently changing hands for 74.5p.