Our strategy, values and risk appetite inform and shape our risk management and internal controls framework

The Board and the Executive Committee provide oversight of our principal and emerging risks, and the Audit Committee monitors the overall effectiveness of our risk management processes and internal controls. As understanding and effectively managing the Group’s risks are fundamental to being able to execute our strategy, we are committed to a robust system of identifying and responding to the risks we face.

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Risk management process

Our risk management process is designed to be a consistent and clear framework for embracing,  managing and reporting risks from the Group’s business activities to the Executive Committee and the Board by allowing us to:

  • Understand the risk environment, identify the specific risks, and assess the potential opportunities and exposure for Ecora.
  • Determine how best to deal with these risks to manage overall potential exposure.
  • Manage the identified risks in appropriate ways.
  • Monitor the effectiveness of the management of these risks and intervene for improvement  where necessary.
  • Report to the Executive Committee and Board on a periodic basis on how principal risks have been managed, and are being managed and monitored, with any identified enhancements that are being made.

The impact of risk on our strategy and viability

Risk can arise from events outside of our control or from operational matters. Each of the risks described on the following pages can have an impact on our ability to deliver our strategy and the Group’s ongoing viability.


Material risks that we consider may lead to threats to our business model, strategy and liquidity are identified through our framework of risk management, our analysis of individual processes and procedures and a consideration of the strategy and operating environment of the Group.


We analyse the risks and controls and evaluate the commercial, strategic, regulatory and other impacts, as well as the likelihood of occurrence.


The executive management team is responsible for monitoring the controls and progress of actions to manage principal risks. It is supported through the Group’s audit and assurance programmes and the principal risks are reviewed by the Board on a semi-annual basis.


We respond to changes in the materiality of risk by reviewing the mitigating actions and checking that they are still appropriate for the level of risk.

Emerging risks that are currently being monitored are:


The physical impacts from climate change, together with the impact of the response to address climate change, may have a significant impact on the Group’s existing portfolio of royalties and streams together with its ability to acquire further royalties and streams in the future.


Severe supply chain and logistics disruptions have the potential to impact not only the production and distribution of our operators’ underlying commodities but also the timely delivery of development projects in the case of our non-producing royalties.


Sudden and heightened levels of inflation are being experienced across most of the jurisdictions in which the mines and mills underlying the Group’s portfolio are located.

The increased costs could delay or prevent expansion projects or development projects in the case of our non-producing royalties.


The sudden and significant increase in interest rates could adversely impact the Group’s prospects with higher borrowing costs and reduced access to debt based on financial covenants (e.g. interest ratio).


Closely linked to geopolitical events and supply chain disruption, the real prospect of energy rationing could have a significant impact on the end users of the raw materials derived from the commodities underlying the Group’s portfolio.

A potentially catastrophic incident such as a mine shaft failure, slope wall failure, fire or flood at one of the operations underlying the Group’s portfolio or royalties and streams, which could result in the destruction or loss of ore body or render it uneconomic.


Inadequate design or construction, adverse geological conditions, and natural events such as seismic activity or floods.


A major incident could result in our mining partner losing its licence to operate or lead to a halt in royalties or metal deliveries, resulting in lower cash flows, potential impairments/valuation losses and limiting the Group’s ability to pursue its growth strategy.


Although these risks cannot be easily mitigated or transferred, the Group undertakes extensive due diligence engaging both internal and external experts to assess the viability of the project, before proceeding with an investment.

The Group monitors all operational incidents, including technical and ESG related matters, through ongoing engagement with our mining partners. All incidents are reviewed and discussed by the Sustainability Committee.

Demand for royalties and streams may decline depending on macro-economic conditions.


High commodity price environments typically reduce the demand for near-term financing through royalties or streams, as operators have greater access to conventional sources of financing. Increased competition in the royalty and stream sector could make it difficult to execute deals in a depleted pool of opportunities.


Royalties and streams are, by their nature, depleting assets; as a result failing to acquire new assets may lead to lower cash flows, profitability and valuation, which in turn limits the Group’s ability to pursue its growth strategy. Ecora Resources does not directly compete with the well-established precious metals royalty and stream companies, and it is uniquely placed, focusing on future-facing metals.


Disciplined application of investment criteria which includes the preference for long-life assets that will generate returns through the cycle.

Ecora Resources has built a credible global brand and network, backed by a successful track record of identifying and executing royalty transactions.

Global macro-economic conditions leading to sustained low product prices and/or volatility.


Factors that could contribute to this risk include armed conflict involving major economies, global trade disputes and sanctions, economic slowdown in a leading economy and a disrupted recovery from the COVID-19 pandemic as a result of new variants being resistant to vaccines.


Low commodity prices can result in lower levels of cash flow, profitability and valuation. Lower cash flows and valuations may in turn constrain the Group’s ability to fund the acquisition of new royalties and streams, or meet financial covenants associated with its borrowing facility.


Maintaining a portfolio of royalties and streams that is diversified by both commodity and geography.

Regular updates of economic analysis and commodity price assumptions are discussed by the Executive Committee and the Board.

Disciplined approach to investment decisions, including the assessment of commodity price forecasts, with a focus on generating shareholder returns through the cycle.

Geopolitical events and tensions have the potential to negatively impact our business.


Geopolitical disputes between major economic countries. Armed conflict involving world powers. Restrictions and constraints to free trade. Geopolitical risk can create counterparty risk in circumstances where a country introduces capital controls.


Commodity price and sales volume volatility experienced by the operations underlying the Group’s portfolio, as a result of trade actions (increased tariffs, retaliations and sanctions) could lead to lower levels of cash flow, profitability and valuation, which in turn could constrain the Group’s ability to fund the acquisition of new royalties and streams, or meet financial covenants associated with its borrowing facility.

If capital controls are introduced by a country, this could subsequently lead to a counterparty being unable to remit funds to the Group.


The Group’s portfolio of royalties and metal streams is diversified by both commodity and geography.

Ecora Resources’ success will depend on the Executive Committee making sound investment decisions to ensure that the royalties and streams acquired match or exceed expectations at the point of acquisition.


The actual performance of the royalties and streams acquired fails to achieve the expected returns, due to variations in the commodity prices, production volumes, and start dates assumed in the investment base case model.


The underperformance of an investment could result in the inability to achieve cash flow or profitability targets. In turn the Group’s ability to obtain funding future growth, service its debt obligations and provide shareholder returns could be significantly reduced.

Potential damage to Ecora Resources’ reputation, and loss of support from stakeholders.


The Group undertakes a thorough due diligence and screening process when considering each investment opportunity, which is key to reducing the risks of making a bad investment.

Disciplined approach to investment, based on key criteria, with all material investments subject to review and challenge by the Executive Committee and the independent Directors.

Ongoing disruption caused by the COVID-19 pandemic.


Vaccine resistant strains of COVID-19 or disruptions in the vaccine supply chain.


Operational disruption at the mines and mills underlying the Group’s portfolio. Further shocks to the global economy, through supply chain disruption and inflation.


Diversified portfolio and operators who have protocols in place to limit disruption to production. The royalty and streaming business model provides a natural inflation hedge as it is only exposed to underlying operations at revenue level.

Ecora Resources updated its health and safety policies and procedures, responded to government guidelines on working from home and introduced a hybrid working policy to safeguard our employees.