5th Sep 2023 13:57
Ecora Resources PLC - South and North America-focused royalty and streaming company - Swings to a pretax loss of USD10.2 million in the six months ended June 30, from a profit of USD130.0 million the year prior. Royalty and metal stream related revenue falls sharply to USD42.7 million from USD93.2 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 USD43.8 million on its coal royalties at Kestrel, compared to a USD42.3 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 USD100 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 USD44.5 million, down sharply from USD92.8 million the year prior.
Current stock price: 106.20 pence, down 4.0% in London on Tuesday afternoon
12-month change: down 36%
By Heather Rydings, Alliance News senior economics reporter
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