HY 2023 Results Highlights
Financial highlights:
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Portfolio contribution in H1 2023 of $44.5 million (H1 2022: $92.8 million) with royalty and metal stream related revenue in H1 2023 of $42.7 million (H1 2022: $93.2 million) reflecting the commencement of the transition to mining outside of the Group’s private royalty area at Kestrel along with a normalisation in commodity prices from record levels in H1 2022
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Adjusted earnings per share of 9.06c (H1 2022: 28.08c) reflecting the lower portfolio contribution relative to the same period last year
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Loss before tax in H1 2023 of $10.2 million (H1 2022: profit $130.0 million), reflecting the lower royalty and metal stream related revenue, together with the revaluation of Kestrel to account for H1 2023 depletion
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Net debt as at 30 June 2023 of $43.3 million (31 December 2022: $36.4 million)
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Next quarterly dividend payment of 2.125c to be paid on 25 October 2023 to shareholders on the register at 29 September 2023, bringing the first half dividend to 4.25
Growth portfolio:
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Six deliveries of cobalt were received in H1 under the Voisey’s Bay stream (each delivery is 20 tonnes of which 70% is attributable to the Group) with four to five further deliveries scheduled in H2. Ramp up of the underground operations will continue in the second half and is expected to drive a step up in deliveries in 2024
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Construction of the West Musgrave nickel-copper project is ongoing, with BHP continuing to target first production as early as second half 2025
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At Piauí, the small scale PNP 1000 starter plant completed 12 months of operations during the quarter demonstrating the commercial viability of the project and Brazilian Nickel continues to evaluate construction financing options for the full scale project
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Feasibility study on Santo Domingo underway and expected to be published before end of 2023
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In August the Group completed the acquisition of a 0.25% NSR over the Vizcachitas copper project in Chile, one of the largest undeveloped copper projects in the world, giving the Group a copper growth pipeline extending well into the next decade
2023 Half Year Results
“Our performance in the first half of the year has been in line with expectations for a lower portfolio contribution following a record outcome in 2022. Ecora has now entered the first of a multiyear transition in the commodities underlying the composition of our revenue mix, which will see a run-off in the Kestrel steel making coal royalty, and income growth from our portfolio of royalties exposed to future facing commodities which has the potential to generate over US$100m of annual portfolio contribution in the medium term.
Marc Bishop Lafleche
Chief Executive Officer
