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Ecora Resources (GB:ECOR)
LSE:ECOR

Ecora Resources (ECOR) AI Stock Analysis

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Ecora Resources

(LSE:ECOR)

Rating:66Neutral
Price Target:
72.00p
▲(14.83%Upside)
Ecora Resources scores moderately well overall. The biggest strengths are in technical analysis and strategic growth plans highlighted in the earnings call, which provide a positive outlook. Financial performance and valuation are weaker, affected by declining revenues and profitability challenges. Recent corporate events add a positive dimension, signaling strong management confidence.

Ecora Resources (ECOR) vs. iShares MSCI United Kingdom ETF (EWC)

Ecora Resources Business Overview & Revenue Model

Company DescriptionEcora Resources PLC operates as a natural resource royalty and streaming company in Australia, North and South America, Europe, and internationally. It has royalties and investments in mining and exploration interests in cobalt, steelmaking coal, iron ore, copper, nickel, vanadium, uranium, coking coal, calcium carbonate, chromite, gold, and silver. The company was formerly known as Anglo Pacific Group plc and changed its name to Ecora Resources PLC in October 2022. Ecora Resources PLC was incorporated in 1967 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyEcora Resources generates revenue primarily through royalty and streaming agreements. These agreements allow the company to receive a percentage of the revenue or production from mining operations without directly investing in the mining infrastructure. Key revenue streams include royalties, where Ecora receives a predetermined percentage of the revenue from resource extraction, and streaming agreements, where the company provides capital to mining operations in exchange for the right to purchase a portion of the mined resources at a reduced price. These financial instruments provide Ecora with stable and predictable cash flows, which are further enhanced by strategic partnerships with mining operators and other investment entities.

Ecora Resources Earnings Call Summary

Earnings Call Date:Mar 27, 2025
(Q4-2024)
|
% Change Since: -3.82%|
Next Earnings Date:Sep 03, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with substantial volume growth and strategic acquisitions in base metals, particularly in copper. However, challenges remain in the cobalt market and some specialty metals segments. Ecora's financial and portfolio positioning remains strong, providing a positive outlook for future growth.
Q4-2024 Updates
Positive Updates
Volume Growth in Portfolio
In 2024, Ecora saw significant volume growth from key producing royalties, particularly at Voisey's Bay and Kestrel, with expectations for continued growth into 2025. Voisey's Bay saw a 36% increase in volumes, and Mantos Blancos hit record production levels.
Mimbula Copper Stream Acquisition
Ecora's acquisition of the Mimbula copper stream is expected to increase its copper exposure. The stream is income-producing and should be accretive to earnings and free cash flow from 2025 onwards.
Strong Base Metals Portfolio Performance
Base metals portfolio performed well with a 9% contribution increase on a like-for-like basis. The company expects to see 60% volume growth at Voisey's Bay in 2025.
Copper Growth Pipeline
Ecora has built a leading organic copper growth pipeline, with potential copper production expected to reach 20 million pounds in the next decade.
Improved Financial Position
Ecora's financial position remains strong with a $180 million borrowing facility, and the company plans to focus on deleveraging and balance sheet strength.
Negative Updates
Cobalt Market Challenges
The cobalt market faced significant oversupply, causing an impairment to the Voisey's Bay stream. Realized cobalt prices were down 18%.
Lower Vanadium Prices at Maracas
Specialty metals saw a reduction at Maracas due to a 30% decrease in vanadium prices.
Impairment Charges
An impairment charge was recorded for Voisey's Bay due to a prolonged decrease in cobalt prices, impacting future income projections.
Static Operating Costs
Operating costs remained static year-on-year, which could imply challenges in cost management despite portfolio growth.
Company Guidance
In the recent Ecora Resources Full Year 2024 Results Call, leadership emphasized a positive year amid challenging market conditions, highlighting a 9% year-on-year contribution growth when adjusted for nonrecurring items. The company emphasized its focus on portfolio diversification and growth, citing key acquisitions such as the Phalaborwa royalty and Mimbula copper stream. Significant volume growth was reported from Voisey's Bay and Mantos Blancos, with further copper production growth anticipated at Kestrel. Despite challenges in the cobalt market, the company foresees favorable pricing tailwinds ahead. Financially, adjusted earnings were steady at $28.8 million, translating to $0.114 per share, with the firm maintaining a robust capital allocation framework focused on deleveraging. Ecora's portfolio remains heavily weighted towards base metals, particularly copper, which is projected to drive substantial growth in their critical minerals royalty portfolio, potentially increasing revenue from $20 million in 2024 to over $100 million by 2030.

Ecora Resources Financial Statement Overview

Summary
Ecora Resources is facing challenges with declining revenue and profitability, impacting its income statement. Despite this, the balance sheet remains solid with low leverage and a strong equity position, offering some stability. Cash flow conditions are favorable in terms of cash generation, but past volatility poses risks. The company needs to address its revenue and profitability issues to improve its financial health.
Income Statement
45
Neutral
Ecora Resources shows a concerning trend with declining revenues from $115.17 million in 2022 to $59.61 million in 2024, a significant drop. Gross profit margin remains high at 84.7% for 2024 but the net profit margin has turned negative due to a net loss. EBIT margin is robust at 66.2%, indicating operational efficiency. However, the overall decline in revenue and a net loss are major concerns.
Balance Sheet
72
Positive
The balance sheet is relatively strong with a debt-to-equity ratio of 0.21, indicating low leverage. The equity ratio is 78.4%, showcasing a solid equity position. Return on equity has deteriorated due to recent losses. The company maintains a healthy asset base with a total of $553.97 million, though declining equity and increasing liabilities are potential concerns.
Cash Flow
60
Neutral
Cash flow analysis reveals a positive operating cash flow to net income ratio, highlighting good cash generation capabilities despite a net loss. Free cash flow is positive, indicating the company generates sufficient cash flow after capital expenditures. However, the volatility in free cash flow growth and past negative figures are areas to watch.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue68.83M59.61M61.90M115.17M62.02M34.01M
Gross Profit61.26M50.49M53.09M99.25M43.83M22.09M
EBITDA47.38M22.61M18.52M102.01M54.35M-19.75M
Net Income11.49M-9.83M847.00K94.64M27.25M-18.60M
Balance Sheet
Total Assets615.33M553.97M636.28M564.42M384.26M286.20M
Cash, Cash Equivalents and Short-Term Investments12.98M7.88M7.85M4.86M16.24M20.16M
Total Debt99.40M93.29M85.76M35.72M83.26M45.28M
Total Liabilities147.17M119.33M154.26M145.76M120.61M71.20M
Stockholders Equity468.16M434.64M378.11M418.66M263.65M215.01M
Cash Flow
Free Cash Flow-27.38M18.92M-23.57M55.52M32.62M14.50M
Operating Cash Flow20.09M29.59M33.54M104.15M32.65M15.72M
Investing Cash Flow-28.00M-6.26M-43.17M-43.86M-99.33M10.56M
Financing Cash Flow21.65M-22.70M11.72M-71.87M63.62M-12.40M

Ecora Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price62.70
Price Trends
50DMA
58.64
Positive
100DMA
58.80
Positive
200DMA
60.72
Positive
Market Momentum
MACD
1.60
Positive
RSI
51.71
Neutral
STOCH
33.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ECOR, the sentiment is Positive. The current price of 62.7 is below the 20-day moving average (MA) of 63.48, above the 50-day MA of 58.64, and above the 200-day MA of 60.72, indicating a neutral trend. The MACD of 1.60 indicates Positive momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 33.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ECOR.

Ecora Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£165.64M12.136.40%1.71%6.32%-54.82%
GBJLP
72
Outperform
£108.55M7.041.86%
66
Neutral
£156.14M9.71-2.05%0.03%-5.97%-1292.31%
44
Neutral
C$953.01M-6.70-13.31%2.79%17.55%-32.28%
GBSAV
£76.05M-13.18%
GBKP2
£111.69M-0.66%
GBPRE
£182.49M-10.18%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ECOR
Ecora Resources
62.70
-6.21
-9.01%
GB:JLP
Jubilee Metals Group
3.45
-3.55
-50.71%
GB:SAV
Savannah Resources
3.50
-0.40
-10.26%
GB:CAPD
Capital Drilling
84.20
-13.66
-13.96%
GB:KP2
Kore Potash PLC
2.30
0.79
52.32%
GB:PRE
Pensana Rare Earths PLC
61.00
42.20
224.47%

Ecora Resources Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Ecora Resources Announces Director Appointment to Perseus Mining
Positive
Jun 18, 2025

Ecora Resources PLC, a company listed on the London and Toronto Stock Exchanges, has announced the appointment of James Rutherford as an independent Non-Executive Director of Perseus Mining Limited. This move aligns with Ecora’s obligations under UK Listing Rule 6.4.9(2) and indicates a strategic collaboration that could enhance its industry positioning through strengthened governance and potential synergies with Perseus Mining.

The most recent analyst rating on (GB:ECOR) stock is a Buy with a £1.40 price target. To see the full list of analyst forecasts on Ecora Resources stock, see the GB:ECOR Stock Forecast page.

Shareholder Meetings
Ecora Resources PLC Reports Successful AGM Voting Results
Positive
Jun 5, 2025

Ecora Resources PLC announced that all resolutions were passed with the necessary majorities at its Annual General Meeting held on June 5, 2025. The voting results indicate strong shareholder support, with resolutions receiving high approval percentages, reflecting positively on the company’s governance and strategic direction.

The most recent analyst rating on (GB:ECOR) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Ecora Resources stock, see the GB:ECOR Stock Forecast page.

Business Operations and Strategy
Ecora Resources Announces Change in Voting Rights Structure
Neutral
May 19, 2025

Ecora Resources PLC has announced a change in its voting rights structure due to an internal reorganization within South32 Limited, a major shareholder. As a result, the voting rights previously held by South32 have been transferred to another entity within the South32 group, maintaining their overall voting percentage at 17.516473%. This reorganization reflects South32’s strategic adjustments and could influence Ecora’s governance and decision-making processes.

The most recent analyst rating on (GB:ECOR) stock is a Buy with a £140.00 price target. To see the full list of analyst forecasts on Ecora Resources stock, see the GB:ECOR Stock Forecast page.

Shareholder Meetings
Ecora Resources Announces 2025 AGM Details
Neutral
Apr 29, 2025

Ecora Resources PLC has announced the publication of its Notice of Annual General Meeting and Form of Proxy for the 2025 Annual General Meeting, which will be held on June 5, 2025, in London. The company has made these documents available on its website and will distribute them to shareholders who prefer paper communications, while others will receive notifications electronically. This announcement is part of Ecora’s ongoing commitment to shareholder engagement and transparency, ensuring stakeholders are informed and involved in the company’s governance processes.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Ecora Resources Reports Solid Start to 2025 with Strategic Growth Plans
Positive
Apr 23, 2025

Ecora Resources reported a solid start to 2025 with a Q1 portfolio contribution of $6.0 million, despite a slight decline from Q4 2024 due to timing issues with cobalt deliveries from Voisey’s Bay. The company anticipates stronger volume growth in Q2, driven by increased cobalt deliveries, resumed contributions from Four Mile, and the first revenue from the Mimbula copper stream. Ecora has also expanded its revolving credit facility and reached an agreement with Whitehaven Coal for accelerated payments, reflecting strategic financial management and positioning for future growth.

Other
Ecora Resources Director-Linked Share Acquisition
Positive
Apr 10, 2025

Ecora Resources PLC announced a transaction involving CH Invest GmbH, a company closely associated with Ms. Christine Coignard, a Non-Executive Director of Ecora. On April 8, 2025, CH Invest GmbH acquired 16,450 ordinary shares of Ecora at an average price of £0.52 per share on the London Stock Exchange. This transaction highlights the continued interest and investment in Ecora’s shares by its associated parties, potentially signaling confidence in the company’s market position and future prospects.

Other
Ecora Resources Executives Increase Shareholdings
Positive
Mar 31, 2025

Ecora Resources PLC, a company listed on the London Stock Exchange and Toronto Stock Exchange, has announced recent share acquisitions by its top executives and directors. CEO Marc Bishop Lafleche, CFO Kevin Flynn, Non-Executive Chairman Andrew Webb, and Non-Executive Director Graeme Dacomb have all purchased shares in the company, with transactions taking place on the London Stock Exchange. These acquisitions may indicate the executives’ confidence in the company’s future prospects and could positively influence stakeholder perceptions.

Executive/Board ChangesRegulatory Filings and Compliance
Ecora Resources Announces Share Transactions and LTIP Awards
Neutral
Mar 31, 2025

Ecora Resources PLC announced the transfer of 436,733 ordinary shares from treasury to satisfy option exercises by employees, including the CEO and CFO, under the Long Term Incentive Plan (LTIP). The awards, which vested in February 2025, were exercised and partially sold to cover tax obligations. Additionally, new awards were granted to the CEO and CFO, set to vest in March 2028, contingent on performance conditions. These transactions impact the company’s share capital and voting rights, with the total number of voting rights now at 249,034,666, affecting shareholder calculations under FCA regulations.

Business Operations and StrategyFinancial Disclosures
Ecora Resources Announces Investor Presentation on 2024 Results
Neutral
Mar 28, 2025

Ecora Resources PLC, a company listed on the London Stock Exchange and Toronto Stock Exchange, is set to host a live interactive presentation to discuss its 2024 Full Year Results. The event, scheduled for April 3, 2025, will be held on the Engage Investor platform, inviting current shareholders and interested investors to participate and engage with the leadership team. This initiative reflects Ecora’s commitment to transparency and investor engagement, potentially strengthening its market position and stakeholder relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 18, 2025