Ecora Royalties (ECOR) investor relations material

Strategic portfolio transformation

• Transitioned from coal-dependent revenue to a diversified portfolio focused on copper and other critical minerals, enhancing earnings quality and growth potential.

• Portfolio now features multi-decade mine lives, diversified cash flow sources, and significant organic growth opportunities, especially in base metals.

• Copper is central, with additional exposure to nickel, cobalt, rare earths, uranium, and vanadium.

• Portfolio is aligned with global mega-trends such as electrification, digitalization, and supply chain autonomy, driving future commodity demand.

• Entry point offers 3-4x rerating potential over the next five years, supported by strong fundamentals and peer comparisons.

Portfolio fundamentals and growth drivers

• Approximately 50% of portfolio value is in copper, with 80% of assets in the first and second cost quartiles and 85% in OECD countries or Brazil.

• Key operator partners include Capstone, Vale, BHP, Rio Tinto, and others, with about half of assets already producing.

• Organic copper growth profile is sector-leading, with significant attributable production increases expected from assets like Mantos Blancos, Mimbula, and Santo Domingo.

• Multiple near-term catalysts include brownfield expansions, production restarts, and development milestones across copper, cobalt, nickel, rare earths, and uranium assets.

• Royalty model provides direct exposure to commodity price upside, with margin expansion as prices rise due to a scalable fixed cost base.

Financial outlook and valuation

• Analyst consensus forecasts a sharp increase in base metals royalties, up 160% in 2025, with copper driving portfolio contribution growth.

• 2026 portfolio contribution projected at ~$70m, with further upside from brownfield expansions and new developments.

• Current share price does not fully reflect the value of near-term development assets, offering significant upside potential.

• Illustrative 2030 EBITDA of ~$100m implies a market cap of $1.5–2.0 billion, representing 3–4x potential upside over five years.

• Free cash flow yield and valuation multiples compare favorably to peers, reinforcing the attractive entry point.