tiprankstipranks
Trending News
More News >
Ecora Resources (GB:ECOR)
LSE:ECOR
Advertisement

Ecora Resources (ECOR) AI Stock Analysis

Compare
94 Followers

Top Page

GB:ECOR

Ecora Resources

(LSE:ECOR)

Select Model
Select Model
Select Model
Neutral 63 (OpenAI - 4o)
Rating:63Neutral
Price Target:
80.00p
▼(-8.05% Downside)
Ecora Resources' overall stock score is driven by strong technical indicators and positive earnings call sentiment, highlighting growth in critical minerals and strategic moves. However, financial performance is hindered by declining revenues and profitability, and valuation challenges persist with a negative P/E ratio. The dividend yield offers some investor appeal.

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 royalties and streams from its mineral and energy investments. The company's revenue model is built on acquiring interests in resource projects and receiving payments based on the production of minerals or energy generated from those projects. Key revenue streams include royalty payments from producing mines, which provide a percentage of the revenues generated by the operations without direct involvement in mining activities. Additionally, Ecora may enter into strategic partnerships with mining companies, enhancing its earnings through collaborations that allow for shared risk and potential upside in resource development. The company's focus on sustainable investments and diversification across various resource sectors further contributes to its financial stability and growth potential.

Ecora Resources Earnings Call Summary

Earnings Call Date:Sep 03, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Positive
The earnings call reflected strong growth in the base metals segment, especially copper and cobalt, alongside successful strategic moves like the sale of Dugbe Gold Royalty. Despite some concerns around high tax rates and nickel market challenges, the overall sentiment is positive due to strong financial performance and strategic positioning in critical minerals.
Q2-2025 Updates
Positive Updates
Strong Growth in Base Metals Portfolio
The base metals portfolio saw an 81% increase in performance due to strong volume and pricing dynamics, with key contributions from Voisey's Bay and Mantos Blancos.
Record Production and Revenue from Mantos Blancos
Mantos Blancos copper royalty achieved record levels of production, contributing significantly to revenue growth, with the potential for further expansion in the future.
Positive Cobalt Market Dynamics
The DRC export ban on cobalt has stabilized prices between $18 to $20 per pound, providing an uplift compared to the previous $13 per pound.
Mimbula Copper Stream Acquisition
The acquisition of the Mimbula copper stream has already contributed $0.7 million and is expected to show more momentum in the second half of the year.
Successful Sale of Dugbe Gold Royalty
The sale of the noncore Dugbe Gold Royalty helps accelerate deleveraging and provides flexibility for future capital reallocation.
Improved Financial Performance
Free cash flow conversion is expected to improve with a lower effective tax rate and potential reductions in finance costs due to interest rate cuts.
Negative Updates
High Effective Tax Rate on Kestrel
The Kestrel asset is associated with a very high effective tax rate, impacting free cash flow despite its contribution to deleveraging.
Challenges in Nickel Market
Nickel has faced challenging market conditions, with concerns over project developments like West Musgrave and Piauí amidst a difficult pricing environment.
Company Guidance
During the Ecora Resources Half Year 2025 Results Presentation, Ecora reported robust performance in their critical minerals portfolio, specifically highlighting a significant 81% increase in base metals portfolio revenue compared to the previous year. The first half of 2025 marked a milestone with more than 50% of their revenue linked to critical minerals, projecting an increase to 85% by 2030. Record contributions were noted from the Voisey's Bay mine and Mantos Blancos copper royalty, with the latter experiencing a 35% increase primarily due to volume growth. The company also announced a $0.06 per share dividend, aligning with their policy to distribute approximately 25% of free cash flow. Ecora's deleveraging efforts were supported by the sale of the Dugbe Gold Royalty, enhancing the company's flexibility for future capital reallocation. Furthermore, the company anticipates substantial cash flow growth from ongoing projects and potential expansions, maintaining a strategic focus on base metals, particularly copper, while considering other critical minerals as market opportunities arise.

Ecora Resources Financial Statement Overview

Summary
Ecora Resources faces 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 Revenue25.99M59.61M61.90M141.87M85.30M34.01M
Gross Profit12.34M50.49M53.09M99.25M43.83M22.09M
EBITDA12.48M22.61M18.52M126.80M54.35M35.45M
Net Income-30.35M-9.83M847.00K94.64M27.25M-18.60M
Balance Sheet
Total Assets590.76M553.97M636.28M564.42M384.26M286.20M
Cash, Cash Equivalents and Short-Term Investments7.94M7.88M7.85M4.86M21.99M27.51M
Total Debt135.63M93.29M85.76M45.60M112.77M45.28M
Total Liabilities160.85M119.33M154.26M145.76M120.61M71.20M
Stockholders Equity429.91M434.64M378.11M503.60M263.65M293.49M
Cash Flow
Free Cash Flow-32.16M18.92M-23.57M55.52M32.62M14.50M
Operating Cash Flow20.47M29.59M33.54M104.15M32.65M15.72M
Investing Cash Flow-47.10M-6.26M-43.17M-54.01M-136.61M14.44M
Financing Cash Flow19.91M-22.70M11.72M-92.74M76.63M-18.28M

Ecora Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price87.00
Price Trends
50DMA
78.97
Positive
100DMA
72.08
Positive
200DMA
65.26
Positive
Market Momentum
MACD
3.79
Positive
RSI
54.43
Neutral
STOCH
58.81
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 87 is above the 20-day moving average (MA) of 86.65, above the 50-day MA of 78.97, and above the 200-day MA of 65.26, indicating a bullish trend. The MACD of 3.79 indicates Positive momentum. The RSI at 54.43 is Neutral, neither overbought nor oversold. The STOCH value of 58.81 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£236.07M13.298.44%1.57%-1.46%-24.05%
63
Neutral
£230.36M9.71-6.87%2.20%-63.09%-253.25%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
£95.18M7.041.86%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ECOR
Ecora Resources
87.00
24.56
39.33%
GB:JLP
Jubilee Metals Group
2.85
-1.70
-37.36%
GB:SAV
Savannah Resources
4.22
0.22
5.50%
GB:CAPD
Capital Drilling
124.00
42.15
51.50%
GB:KP2
Kore Potash PLC
3.15
0.25
8.62%
GB:PRE
Pensana Rare Earths PLC
153.50
130.35
563.07%

Ecora Resources Corporate Events

Business Operations and StrategyFinancial Disclosures
Ecora Resources Sees Strong Q2 Growth Driven by Base Metals
Positive
Jul 23, 2025

Ecora Resources reported a significant increase in its Q2 2025 portfolio contribution, driven by strong performance in its base metals portfolio, particularly copper and cobalt. The company highlighted a 97% rise in total portfolio contribution compared to Q1 2025, with notable contributions from Voisey’s Bay and Mantos Blancos. This growth marks a pivotal transition towards a revenue profile centered on critical minerals, with expectations for continued volume growth in the second half of 2025. The update underscores Ecora’s strategic shift towards supporting sustainable futures through its critical minerals portfolio, positioning the company advantageously in the market.

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.

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.

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: Sep 05, 2025