Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF) CEO Marc Bishop Lafleche talked with Proactive about the company's cobalt stream investment at Voisey's Bay and the production ramp-up timeline. Lafleche highlighted Ecora's entitlement to nearly 23% of the cobalt production from the Voisey’s Bay mine, operated by Vale. This mine, which initially started as an open-pit operation, is now transitioning underground with significant production increases expected by 2026.
Proactive: Hello, you're watching Proactive. I'm joined by Ecora Resources CEO, Marc Bishop Lafleche. Marc, good to speak to you. Your team just came back from a visit to Voisey’s Bay. So let's take a look at this investment in more detail. Could you start by reminding us what it is you own?
Marc Bishop Lafleche: Well, we have a stream entitlement at Voisey’s Bay in relation to the cobalt production. The mine primarily produces nickel and also produces cobalt and copper as byproducts. Ecora is entitled to just under 23% of all the cobalt produced at Voisey’s Bay. The mine is majority-owned and operated by Vale.
The mine started more than 20 years ago as an open-pit operation. That material has now been depleted, and operations have since moved underground.
Proactive: The project’s been a bit delayed, but it’s now starting to step up. Is that right, Marc?
Marc Bishop Lafleche: Yes, that’s correct. We’ve seen a slower transition from open-pit to underground mining. There are two deposits at Voisey’s Bay: one is the Reid Brook underground deposit, and the other is the Eastern Deeps. Production at Reid Brook began in June 2021 and has been ramping up. By year-end 2024, we expect Reid Brook to be at or close to full production. The second ramp-up will occur from 2024 through to 2026 at Eastern Deeps.
Over the fourth quarter of this year and into 2025, all the mining and preparation needed for Eastern Deeps should be complete, and production will ramp up. We expect full production from both ore bodies by the end of 2026.
Proactive: Marc, could you quantify the impact that this underground expansion could have on Ecora?
Marc Bishop Lafleche: Yes, but it’s hard to quantify because it’s so material. We're really at an inflexion point for this asset. We’ll see a step-up in production and cobalt deliveries, even starting in our Q3 results. For example, in 2023, we received 11 deliveries under the stream agreement. At full production, we expect to receive 40 deliveries per year—almost a 400% increase in volumes. This ramp-up is very significant for our business.
Proactive: What did the team take away from their visit to the mine?
Marc Bishop Lafleche: First, I want to thank the Vale and Voisey’s Bay teams for hosting us. It’s an impressive operation—the processing facilities, surface infrastructure, and the team’s talent. What also stood out is the potential life of mine extension. The ore body could result in production far beyond the current reserve life. Vale is doing exciting work on this, and I’m eager to see what they announce in the future.
Proactive: Finally, cobalt pricing has been at cyclical lows. Are you optimistic about the outlook for cobalt?
Marc Bishop Lafleche: Yes, we are. Since we acquired the stream in 2021, cobalt prices have ranged from $40 per pound to the low teens. On average, we’ve realized $24 per pound. Cobalt demand is projected to grow by 20% year-on-year from 2023 to 2024, which is significant. However, recent pricing has been suppressed by new supply.
Looking ahead, most market commentators believe we’re at or near the bottom for cobalt prices. We anticipate higher prices in the short to medium term. Even if prices remain low, the stream at full production should generate close to $20 million annually, excluding any potential upside from higher pricing. So, we’re well-positioned to benefit as volumes increase and the market improves.