Feb. 9 at 1:54 PM
$ECRAF Ecora Resources (LSE:ECOR) (TSX:ECOR) (OTCX:ECRAF) issued a trading update for the 4th quarter of 2023 that saw royalty income grow strongly, with additional royalty increases expected in 2024.
Highlights:
- 150% QoQ growth in royalty income, 55% ex-uranium legal settlement.
- Coal royalties to grow 15%-25% in 2024 with 75% of royalties paid in Q1.
- Voisey's Bay cobalt royalties to benefit from up to 16 deliveries in 24' vs only 11 in 23'.
- Increased royalty in Piaui's nickel-cobalt project from 1.25% to 1.60%
- Borrowing facility increased to
$225 million leaving ~
$150 million capacity for future royalty growth.
- 2.6x coverage of the US
$0.02125/sh quarterly dividend
Bottom Line: Ecora has reached the royalty trough as management transitions the portfolio away from coal and toward future commodities that will be key to enabling the buildout of low-carbon energy sources such as solar, wind and electric vehicles.
https://youtu.be/Q_4ot2Pd-e4?si=ZI8wcLApAs7ToWnQ