Peel Hunt is backing Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF) despite a slower first quarter, maintaining its Buy rating and 120p price target.
The mining royalty group posted $6 million in revenue for the first quarter, slightly below the previous quarter, largely due to timing issues across its portfolio.
Most notably, there was minimal contribution from Kestrel, where royalty-linked volumes are weighted toward Q3.
Voisey’s Bay saw just four shipments, out of 26 expected for the year, while sales from Four Mile and Mimbula have yet to be recognised due to reporting lags.
Peel noted that revenue from Mantos Blancos met expectations, and net debt of $126 million remains on track.
With over 60% of cobalt shipments and the bulk of Kestrel volumes still to come in the second half, the broker sees meaningful upside in the remainder of 2025, describing Q1 as the softest quarter of the year.
Certainly, the market appeared reassured with the shares up 2.1% at 53.5p in afternoon trading.