Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF) second quarter performance came in well above expectations due to a strong contribution from its Kestrel royalty in Australia.
Second quarter income jumped 63% to US$31.8 million as volumes were higher than expected from its area of Kestrel, while the rest of the portfolio performed as expected.
For the half year, royalty income rose to US$51.3 million (H1 2023: US$44.5 million), driven mainly by sales volumes at Kestrel of 2.0Mt, which is at the top end of guidance for the whole of 2024.
Marc Bishop Lafleche, chief executive, said he was pleased with the first half, adding that Ecora had substantially beaten first-half market expectations.
“In the second half, we expect to see an increase in the number of deliveries from Voisey's Bay as the underground operations have started the ramp-up towards steady-state production levels, which should be achieved in 2026," he added.
“Although a weak nickel price environment has resulted in BHP pausing the construction of the West Musgrave nickel-copper project, we remain confident in the project's potential as a low-cost operation over a 25-year mine life with the possibility of further extension.
"Further to our recent Phalaborwa rare earths royalty acquisition, we continue to see opportunities to diversify and grow our royalty portfolio."