Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF) shares rose 9% to 94.47p after the mining royalty company reported record third-quarter earnings, fuelled by surging income from its copper and cobalt assets and the resumption of mining at its Kestrel coal royalty area.
Total portfolio contribution, Ecora’s measure of royalty and streaming income, more than doubled to $25 million in the three months to September, from $11.8 million in the previous quarter.
The performance was driven by a strong rebound in its base metals portfolio, particularly from copper and cobalt, key materials for electric vehicles and renewable energy infrastructure.
"Overall, we view this as a good update, with base metals — an increasingly important focus for the company — performing strongly amid a supportive commodity price environment, most notably in copper and cobalt," said broker Peel Hunt, repeating its 100p price target.
Digging into the Ecora results statement, royalties from the Mantos Blancos copper mine in Chile and the Voisey’s Bay cobalt stream in Canada generated $9.9 million during the quarter, up 87% on the previous period and nearly four times higher than a year earlier.
Chief executive Marc Bishop Lafleche described it as “a record quarter in many respects,” adding that base metal contributions had risen 150% so far this year compared with 2024.
Ecora raised its production guidance for Voisey’s Bay and expects the mine to reach steady-state output next year. It also used proceeds from asset sales to reduce debt, cutting net borrowings to $104 million at the end of September from $124.6 million three months earlier.
Including royalty payments due in October, net debt would fall to $87 million, about 30% lower since the $50 million acquisition of the Mimbula copper stream earlier this year.
The company also benefited from a $12.5 million contribution from its Kestrel steelmaking coal royalty area after operations resumed, compared with $3.4 million in the second quarter.
Ecora has spent the past few years transitioning away from coal towards metals critical to the energy transition. By 2026, it expects more than 90% of its assets to be linked to commodities such as copper, nickel and cobalt.
Bishop Lafleche said he anticipates “further key development milestones” over the next year that will “derisk Ecora’s next wave of growth.”