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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:
68.00p
▲(9.15%Upside)
Ecora Resources receives an overall score of 66, driven by strong technical analysis and positive earnings call sentiment. The financial performance remains a concern due to declining revenue and a negative P/E ratio, but a solid dividend yield and positive corporate events provide some balance. Key strengths include strategic growth in base metals and executive confidence, while the main risks involve profitability challenges.

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: -5.61%|
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
Income Statement
Balance Sheet
Cash Flow
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
61.90M115.17M62.02M34.01M55.73M
Gross Profit
53.09M99.25M43.83M22.09M44.82M
EBIT
42.21M94.13M40.47M22.09M44.82M
EBITDA
18.52M102.01M54.35M-19.75M56.00M
Net Income Common Stockholders
847.00K94.64M27.25M-18.60M29.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.85M4.86M16.24M20.16M7.60M
Total Assets
636.28M564.42M384.26M286.20M307.95M
Total Debt
85.76M35.72M83.26M45.28M37.35M
Net Debt
77.91M30.86M67.02M25.12M29.75M
Total Liabilities
154.26M145.76M120.61M71.20M82.23M
Stockholders Equity
378.11M418.66M263.65M215.01M225.71M
Cash FlowFree Cash Flow
-23.57M55.52M32.62M14.50M3.75M
Operating Cash Flow
33.54M104.15M32.65M15.72M46.05M
Investing Cash Flow
-43.17M-43.86M-99.33M10.56M-60.68M
Financing Cash Flow
11.72M-71.87M63.62M-12.40M16.08M

Ecora Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price62.30
Price Trends
50DMA
56.74
Positive
100DMA
59.17
Positive
200DMA
61.09
Positive
Market Momentum
MACD
1.72
Negative
RSI
63.04
Neutral
STOCH
88.14
Negative
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 62.3 is above the 20-day moving average (MA) of 59.49, above the 50-day MA of 56.74, and above the 200-day MA of 61.09, indicating a bullish trend. The MACD of 1.72 indicates Negative momentum. The RSI at 63.04 is Neutral, neither overbought nor oversold. The STOCH value of 88.14 is Negative, 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£145.18M10.636.40%2.67%6.32%-54.82%
GBJLP
72
Outperform
£122.86M7.761.86%
66
Neutral
£158.35M9.71-2.05%5.28%-5.97%-1292.31%
51
Neutral
$2.03B-1.13-21.36%3.65%2.87%-30.54%
GBSAV
£80.39M-13.18%
GBKP2
£164.34M-0.66%
GBPRE
£146.19M-10.18%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ECOR
Ecora Resources
62.30
-9.72
-13.50%
GB:JLP
Jubilee Metals Group
3.80
-3.80
-50.00%
GB:SAV
Savannah Resources
3.70
0.05
1.37%
GB:CAPD
Capital Drilling
72.00
-28.29
-28.21%
GB:KP2
Kore Potash PLC
3.40
1.42
71.72%
GB:PRE
Pensana Rare Earths PLC
54.00
34.05
170.68%

Ecora Resources Corporate Events

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.

Business Operations and StrategyFinancial Disclosures
Ecora Resources Reports 2024 Results, Highlights Strategic Growth and Expansion
Positive
Mar 27, 2025

Ecora Resources PLC reported its full-year results for 2024, highlighting significant progress in its royalty portfolio, including record production rates at the Mantos Blancos copper mine and the completion of the Voisey’s Bay underground mine construction. The company has implemented a capital allocation framework prioritizing growth, acquiring a royalty over the Phalaborwa rare earths project and a copper stream over the Mimbula copper mine. Financially, Ecora saw a 9% increase in portfolio contribution to $63.2 million, despite a decrease in royalty and metal stream-related revenue. The company is well-positioned for 2025, expecting volume growth from key operations and supportive price tailwinds, with plans for meaningful balance sheet deleveraging over the next 12-24 months.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.