Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Ecora Resources reports H1 2025 portfolio contribution of USD 17.9m, down from USD 51.3m in H1 2024, due to timing of Kestrel volumes.

  • Net debt increased to USD 124.6m at 30 June 2025 following the Mimbula acquisition, with deleveraging expected in H2.

  • Interim dividend declared at 0.60 cents per share, representing ~25% of free cash flow.

Ecora Resources PLC (LSE:ECOR) has released its half-year results for the six months ended 30 June 2025, outlining a period shaped by timing impacts from Kestrel operations, continued growth in base metals contributions, and a outlook across its critical minerals portfolio.

For the first half of 2025, Ecora reported a total portfolio contribution of USD 17.9 million, down from USD 51.3 million in H1 2024. Royalty and metal stream-related revenue stood at USD 15.8 million, compared with USD 49.5 million in the prior year. The decline reflects a timing difference in mining activity at Kestrel, with production in 2025 weighted to the second half, unlike the prior year where it was weighted to the first half.

Base metals contributed USD 8.7 million in H1 2025, marking an 81% increase from USD 4.8 million in H1 2024. Adjusted earnings per share stood at 1.27 cents, compared with 10.38 cents in the previous year. The Group posted a loss before tax of USD 10.9 million, contrasting with a profit of USD 17.9 million in H1 2024, also due to Kestrel-related timing effects.

Net debt rose to USD 124.6 million at 30 June 2025, up from USD 82.3 million at 31 December 2024. The increase primarily reflects the Mimbula acquisition and corresponds to a leverage ratio of 2.5x, compared to 1.5x at year-end 2024. Adjusting for the expected proceeds of USD 16.5 million from the Dugbe royalty sale, proforma net debt was USD 108.1 million. Management noted that cash flow from H2 2025 should enable further deleveraging.

The Board declared an interim dividend of 0.60 cents per share, equivalent to approximately 25% of free cash flow.

Outlook

Ecora expects improvement in performance in the second half of 2025 as Kestrel volumes return to its royalty area. Critical minerals assets are set to contribute more significantly, with Voisey’s Bay showing higher cobalt guidance at 365–390 tonnes attributable for FY 2025, up from 335–390 tonnes previously. The Mimbula mine continues to ramp up production.

The company highlighted potential benefits from the acceleration of the US government’s critical minerals strategy, including a Department of Defense tender for up to USD 500 million of cobalt stockpiles over five years. Voisey’s Bay, one of only four qualifying producers, is well positioned in this context.

Additional growth initiatives include the Mantos Blancos Phase II study, due in 2026, targeting expanded copper output and increased cathode production. The Santo Domingo project is anticipated to progress in H2 2025 with Capstone expected to announce a strategic partner ahead of potential project sanctioning in 2026. Rainbow Rare Earths is also preparing to release a Definitive Feasibility Study for the Phalaborwa rare earths project, targeting first production by the end of 2027.