Ecora Resources (ECOR) investor relations material

Strategic focus and portfolio evolution

• Transitioned from coal royalties to a critical minerals-focused royalty model, targeting commodities essential for electrification, energy storage, and digital infrastructure.

• Projected 80% growth in critical minerals revenue over five years, with income from these assets expected to surpass coal by 2025.

• Portfolio now comprises 80% base metals (mainly copper), with coal reduced to under 10% of NAV and less than 50% of current revenue.

• Nine producing royalties provide diversification, with key assets in copper, cobalt, and nickel.

• Focus on low-risk jurisdictions, with 85% of assets in OECD countries and strong operating partners.

Growth drivers and project pipeline

• Near-term growth driven by projects like Mimbula (copper), Mantos Blancos (copper), and Voisey’s Bay (cobalt), all ramping up production.

• Development assets such as Santo Domingo (copper), Palabora (rare earths), and West Musgrave (nickel-copper) expected to contribute significantly from 2027 onward.

• Several portfolio assets, including Capstone Copper’s projects and Paterson Corridor East (uranium), are not yet fully valued by the market.

• Recent sale of a non-core gold royalty for up to $20 million enabled debt reduction and highlighted hidden portfolio value.

• Ongoing feasibility studies and partner announcements are key near-term catalysts for unlocking further value.

Financial strategy and capital allocation

• Current market cap is $260 million, with an enterprise value of $375 million; management believes portfolio value could exceed $1 billion by decade’s end.

• Capital allocation shifted from fixed dividends to growth and deleveraging, with buybacks considered secondary to reducing net debt.

• Net debt reduced from $124.6 million to $108 million after recent asset sale, with further deleveraging expected as cash flow increases in H2.

• Focused on acquiring producing or near-producing assets to ensure immediate revenue contribution.

• Directors have increased shareholdings, aligning interests with shareholders.