IN BRIEF: Ecora Resources swings to loss as revenue nearly halves

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Ecora Resources PLC - South and North America-focused royalty and streaming company - Swings to a pretax loss of $10.2 million in the six months ended June 30, from a profit of $130.0 million the year prior. Royalty and metal stream related revenue falls sharply to $42.7 million from $93.2 million. Explains the drop in revenue reflects the start of its transition to mining outside its private royalty area at Kestrel, as well as a normalisation in commodity prices from record levels. Records a revaluation loss of $43.8 million on its coal royalties at Kestrel, compared to a $42.3 million gain the year prior.

‘Our performance in the first half of the year has been in line with expectations for a lower portfolio contribution following a record outcome in 2022. Ecora has now entered the first of a multiyear transition in the commodities underlying the composition of our revenue mix, which will see a run-off in the Kestrel steel making coal royalty, and income growth from our portfolio of royalties exposed to future facing commodities which has the potential to generate over $100 million of annual portfolio contribution in the medium term,’ says Chief Executive Marc Bishop Lafleche.

Portfolio contribution in the first half of the year totals $44.5 million, down sharply from $92.8 million the year prior.

Current stock price: 106.20 pence, down 4.0% in London on Tuesday afternoon

12-month change: down 36%

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