Ecora Royalties PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF, FRA:HGR) reported that its quarterly portfolio contribution jumped 61% year-on-year to US$19 million, driven by record cobalt receipts from the Voisey’s Bay operation.
Base metals generated US$14.1 million, up 166% and accounting for almost three-quarters of the second-quarter total. Voisey’s Bay delivered 196 tonnes of attributable cobalt, compared with 84 tonnes a year earlier, lifting net contribution to US$10.0 million from US$2.7 million.
"Q2 was a strong quarter, with the producing critical minerals portfolio continuing to demonstrate its cash generation potential," said chief executive Marc Bishop Lafleche.
Net debt fell to US$74.9 million at the end of June from US$84.4 million three months earlier and US$124.6 million a year ago. Ecora expects further deleveraging through the remainder of 2026, absent new royalty or stream acquisitions.
Elsewhere, contribution from Mantos Blancos rose to US$2.4 million, while Mimbula’s additional 46,000-tonne-per-year copper capacity entered commissioning in June.
Mining also returned to Ecora’s private royalty area at the Kestrel steelmaking coal operation late in the quarter and is expected to remain there throughout Q3.
Ecora shares climbed 2.1% in Wednesday's trade, to change hands at 133.4p.
In terms of City reaction, stockbroker Stifel sees 76% upside in Ecora Royalties after stronger-than-expected cobalt deliveries from Voisey’s Bay powered a second-quarter earnings beat.
The broker reiterated its Buy rating and 230p price target, compared with a closing share price of 131p.
“We continue to see a significant portion of the valuation discount narrowing over time,” analysts said, pointing to continued cash generation and the ramp-up of Voisey’s Bay and Mimbula.
