Ecora Royalties Plc · LSE:ECOR
Ecora Royalties — H1 2023 Earnings Presentation
20 slides from Ecora Royalties's earnings presentation, Sep 5, 2023
Slide 1: Ecora Resources PLC Half Year Results Presentation
Providing capital to the Providing capital to the mining sector required mining sector to supply to supply the commodities the commodities central central to a sustainable future to a sustainable future Ecora Resources PLC Half Year Results Presentation September 2023
Slide 2: Important disclaimer
Important disclaimer • This document has been prepared and issued by and is the sole responsibility of Ecora Resources PLC (the “Company”) and its subsidiaries (the “Group”) for selected recipients. It comprises the written materials for a presentation to investors and/or industry professionals conc
Slide 3: H1 overview
H1 overview Financial performance in Portfolio transitioning towards line with expectations future facing commodities • Portfolio contribution of $44.5m • BHP West Musgrave project in (H1 2022: $92.8m) construction • AEPS of 9.06c (H1 2022: 28.08c) • Completed acquisition of a 0.25% NSR over the Viz
Slide 4: Financial Review
Financial Review
Slide 5: Financial performance
Financial performance Portfolio contribution Adjusted earnings per share(1) Dividend cover(2) (US$m) (USc) 4.4x 9.47 28.08 2.6x 10.61 19.68 2.3x 2.1x 44.5 92.8 8.26 1.4x 9.06 45.2 15.45 24.1 7.43 23.0 5.50 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1 2019 H1 2020 H1 2021 H1 2022 1H 2023 2019 2020 2021
Slide 6: Portfolio contribution
Portfolio contribution ($m) H1 2023 H2 2022 % Core portfolio Voisey’s Bay (cobalt)(1) 2.4 10.7 (78%) Mantos Blancos (copper) 3.3 3.1 6% Maracás Menchen (vanadium) 1.7 2.0 (15%) LIORC (high purity iron ore pellets) 1.0 1.3 (29%) McClean Lake (uranium) 2.2 2.7 (19%) Four Mile (uranium) 0.6 0.8 (25%) O
Slide 7: Adjusted earnings
Adjusted earnings Change in Earnings (US$m) 44.5 (1.3) (5.0) (2.8) (1.2) (10.9) 23.4 9.1c Portfolio McClean Lake Operating expenses Finance costs Other Taxes Adjusted earnings Adjusted earnings per contribution principal repayment share HY 22 (US$m) 92.8 (1.4) (5.0) (2.7) 0.1 (23.7) 60.1 28.1 • Adju
Slide 8: Summary balance sheet
Summary balance sheet ($m) 30 June 2023 31 Dec 2022 30 June 2022 Metal streams (inc deferred tax) 195.7 197.6 203.4 Coal royalties (Kestrel) 60.7 106.7 120.7 Royalty financial instruments 44.0 43.9 50.8 Royalty and exploration intangibles 248.1 252.6 66.6 Other long-term receivables 33.3 37.4 35.2 T
Slide 9: Net debt increased by $7m
Net debt increased by $7m Change in net debt (US$m) 20 2 6 (46) 18 7 11 43 (5) 36 01-Jan-23 Acquisitions Finance cost, FX & Operating costs Taxes Portfolio (1) Narrabri disposal Dividend 30-Jun-23 Change to net debt other contribution position HY 2022 90 1 - 5 12 (98) - 10 20 (70) (US$m) • The Group
Slide 10: Portfolio update
Portfolio update
Slide 11: Vizcachitas: A tier 1 copper project located in Chile
Vizcachitas: A tier 1 copper project located in Chile Los Pelambres N Reserves Based LOM Unit Cost CHILE Mine Life US$1.25/lb Vizcachitas 26 years El Soldado Ventanas San Felipe Rio Blanco Valparaiso -Andina Year 1-8 Average Annual LOM Average Annual Los Andes Copper Production Copper Production 183
Slide 12: Vizcachitas: transaction summary
Vizcachitas: transaction summary Royalty terms Consideration: US$20 million payable at close Royalty Open pit: 0.25% NSR Entitlement(1) Production not achieved by Incremental 0.1% NSR entitlement 30 June 2030 Production not Los Andes right to elect: achieved by 1. Incremental 0.1% NSR entitlement, o
Slide 13: The leading copper growth pipeline in the royalty sector
The leading copper growth pipeline in the royalty sector Illustrative annual copper production(1) (In tonnes 000s) 600 500 400 300 200 100 - Producing In Construction Brownfield Shovel ready Brownfield restart Medium-term Longer-term 1.525% NSR 2.0% NSR 1.525% NSR 2.0% NSR 1.5% GRR 0.25 - 0.55% NSR
Slide 14: Portfolio developments in H1 2023
Portfolio developments in H1 2023 Kestrel (steel making coal) West Musgrave (nickel copper) • Saleable volumes from Group’s private royalty area • BHP assumed operatorship of project totalled 1.4 Mt (H1 2022: 2.9 Mt) • Construction commenced in November 2022 • Going forward earnings will be more vol
Slide 15: Upcoming portfolio catalysts
Upcoming portfolio catalysts Pipeline of catalysts across producing and development stage projects Voisey’s Bay Transition to underground mine Expected ramp up in 2024 West Musgrave Construction ongoing Mantos Blancos Production targeted as Phase II expansion early as H2 2025 study in 2024 Santo Dom
Slide 16: Appendix
Appendix
Slide 17: Diversified portfolio of producing royalties
Diversified portfolio of producing royalties Market cap of listed producing royalty counterparties ~ $200bn Voisey’s Bay IOC McClean Lake Mill EVBC Carlota Maracás Menchen Kestrel Mantos Blancos Four Mile Producing Voisey’s Mantos Maracás McClean Asset / IOC Kestrel EVBC Four Mile Carlota Commodity
Slide 18: Supported by a strong growth pipeline
Supported by a strong growth pipeline Ring of Fire Salamanca Incoa Piauí West Cañariaco Musgrave Nifty Santo Domingo Pilbara Vizcachitas Development Early Stage West Santo Incoa Asset / Piauí Nifty Vizcachitas Salamanca Pilbara Cañariaco Ring of Fire Commodity (1) Musgrave Domingo Nickel & Cobalt Ca
Slide 19: Investor information
Investor information Top Shareholders (as at 30 June 2023) (1) Analyst coverage Bank of America South32 16.9% Cameron Needham (London) Berenberg Aberforth Partners 7.9% Richard Hatch (London) Canaccord Genuity Schroder Investment Management 7.4% Alex Bedwany (London) Peel Hunt Canaccord Genuity Weal
Slide 20: Endnotes
Endnotes Third party information As a royalty and streaming Company, the Group often has limited, if any, access to non-public scientific and technical information in respect of the properties underlying its portfolio of royalties, or such information is subject to confidentiality provisions. As suc