Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF) saw a near US$28 million swing into the black in its latest half-year as the royalty specialist received a bumper contribution from its Kestrel asset in Australia.
Profits jumped to US$17.9 million from a loss of US$10.2 million, as total income rose to US$51.3 million (from US$44.5 million) in the six months to end June 2024 with Kestrel contributing around 80% of royalties.
Income from its other royalties and interests was largely flat.
Marc Bishop Lafleche, chief executive, commented: "Our portfolio contribution in the first half of 2024 was up 15% year-on-year, driven by a strong performance from Kestrel [coking coal].
The second half portfolio contribution is expected to be principally weighted to the group’s other producing royalties, he added, including production volume growth at the Voisey's Bay [cobalt] and Mantos Blancos [copper] mines.
“Further production growth at Voisey's Bay is expected thereafter as underground operations ramp up to steady state production levels.
"Capstone Copper's updated Feasibility Study on the Santo Domingo project reiterated the project's robust economics and potential to operate within the lowest cost quartile of global copper mines.”
Bishop Lafleche added the group was disappointed by BHP's decision to temporarily suspend operations at its Australian Nickel division, including the construction of West Musgrave where it has royalty interest, but he is confident in the project's potential as a low-cost producer of nickel and copper.
"Overall, year-on-year production volume growth is expected in 2024 and through 2025 at operations underlying the group's royalty portfolio"
The interim dividend is 1.7c, equating to 33% of free cash flow.