- Ecora Resources PLC (ECRAF, Financial) reports Q1 2025 portfolio contribution of $6.0 million, marking a 10% decrease from Q4 2024.
- Net debt rises to $125.9 million, a significant increase from December 2024.
- Cobalt prices increase 40% in Q2 2025, following a ban by the Democratic Republic of Congo.
Ecora Resources PLC (ECRAF) announced its Q1 2025 trading update, reporting a portfolio contribution of $6.0 million, a 10% decline compared to the $6.7 million recorded in Q4 2024. This decrease is largely attributed to the timing of cobalt deliveries from the Voisey's Bay operation. The company expects a stronger Q2 performance with anticipated volume growth from mining at Kestrel, improved cobalt deliveries, as well as contributions from new acquisitions and resumed royalties.
One of the highlights of the period was that Voisey's Bay provided 56 tonnes of cobalt, garnering $1.3 million at an average price of $13.28 per pound. Notably, the cobalt price has increased by 40% in Q2 2025 to $18.63 per pound, influenced by the Democratic Republic of Congo's cobalt export ban, which has significantly impacted the market.
Meanwhile, the Mantos Blancos operation delivered a record quarterly contribution of $1.8 million, driven by successful project enhancements completed in late 2024. On the expansion front, Ecora acquired the Mimbula copper stream for $50 million, with initial rights to 75.0 tonnes in Q1. Revenue from this acquisition will be recognized in Q2 once the copper units are sold.
Ecora's financial structure evolved as its net debt surged to $125.9 million at the end of March 2025, up from $82.3 million in December 2024. Additionally, the revolving credit facility was increased by $30 million to $180 million and extended to January 2028 to support the company's financial flexibility.
To further strengthen its liquidity position, Ecora secured a $6.2 million accelerated payment from Whitehaven Coal related to the Narrabri thermal coal royalty. This move aligns with Ecora's strategy to transition from coal royalties towards a portfolio primarily focused on metals essential for a sustainable future.
