Ecora Royalties Plc · LSE:ECOR
Ecora Royalties — Ecora Resources — Investor Presentation (March 2024)
17 slides from Ecora Royalties's investor presentation, Mar 12, 2024
Slide 1: Ecora Resources PLC Shares Investor Evening
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 Shares Investor Evening 12 March 2024
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: Commodities central to a sustainable future
Commodities central to a sustainable future Our vision Our strategy To be globally recognised as the To acquire royalties and streams royalty company synonymous over low-cost mining operations with commodities that support a sustainable and projects with strong management future by continuing to gro
Slide 4: What is a royalty?
What is a royalty? A royalty is an agreement which provides, in exchange for an upfront Illustrative transaction structure payment made to the mining company, the right to receive a proportion of the revenue from a mining operation once in production without the capex or opex risk Ecora Resources Up
Slide 5: Benefits of the royalty model
Benefits of the royalty model US Consumer price inflation(1) The royalty model (US CPI over the past 8 years, %) Mining 10% Inflation is being felt by operators as companies rising operating costs have compressed margins 9% Development stage projects are re- Attr. Production Attr. Production 8% pric
Slide 6: Commodity selection
Commodity selection Required to achieve the electrification Mining operations & of energy consumption commodities that support a sustainable future ✓ Copper ✓ Zinc ✓ Tin ✓ Nickel ✓ Manganese ✓ Hydrogen ✓ Lithium ✓ Graphite ✓ Rare Earths ✓ Cobalt ✓ Vanadium ✓ Uranium Current Commodity Exposure Encomp
Slide 7: Diversified portfolio of producing royalties
Diversified portfolio of producing royalties Market cap of listed producing royalty counterparties ~ $200bn Voisey’s Bay IOC McClean Lake Mill EVBC Carlota Maracás Menchen Kestrel Mantos Blancos Four Mile Producing Voisey’s Mantos Maracás McClean Asset / IOC Kestrel EVBC Four Mile Carlota Commodity
Slide 8: Supported by a strong growth pipeline
Supported by a strong growth pipeline Ring of Fire Salamanca Incoa Piauí West Cañariaco Musgrave Nifty Santo Domingo Pilbara Vizcachitas Development Early Stage West Santo Incoa Asset / Piauí Nifty Vizcachitas Salamanca Pilbara Cañariaco Ring of Fire Commodity (1) Musgrave Domingo Nickel & Cobalt Ca
Slide 9: Current share price at a significant discount to NAV
Current share price at a significant discount to NAV Analyst Consensus NAV/Share(1) (p/share) £0.08 (£0.23) £0.19 £0.30 Value not currently reflected in market value £0.33 £1.03 Current share price 75p £1.10 Current Ecora share price of Santo Domingo Piaui £0.75 75p per share Estimated first Estimat
Slide 10: Growing future facing commodities portfolio
Growing future facing commodities portfolio Revenue growth from future facing commodities(1) ($’s million) 120 Future facing commodities (producing) Development(2) Other commodities • Santo Domingo: targeted first 100 Future facing commodities (construction) production 2027-28 Future facing commodit
Slide 11: 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 12: Portfolio catalysts
Portfolio catalysts 2024 2025 2026 Voisey’s Bay Underground ramp up West Musgrave Construction Updated Feasibility Santo Domingo Cobalt study Construction Study Mantos Blancos Phase 2 Feasibility Study Potential expansion Piauí Construction financing Construction Expansion of producing mine Construc
Slide 13: Ecora offers exceptional value both relative to peers and in absolute terms
Ecora offers exceptional value both relative to peers and in absolute terms Market Cap(1) P/NAV(1) EV/2024E EBITDA(1) 2024E EBITDA(1) 2025E FCF Yield(1) (US$M) (x) (x) (US$M) (%) LTM LTM Avg. Max ECORA Ecora $246 0.5x 0.6x 0.7x 5.6x $52 15.3% Deterra $1,712 1.0x 1.0x 1.2x 10.4x $164 6.6% LIORC $1,42
Slide 14: Investment case
Investment case A leading future-facing commodities royalty company World class royalty Strong growth Track record of portfolio profile capital returns Proven track Robust Attractive record sustainability valuation profile Shares Investor Evening – March 2024 14
Slide 15: Q&A
Q&A
Slide 16: Investor information
Investor information Top Shareholders (as at 31 December 2023) (1) Analyst coverage Bank of America South32 16.9% Cameron Needham (London) Berenberg Aberforth Partners 7.8% Richard Hatch (London) Canaccord Genuity Schroder Investment Management 6.2% Alex Bedwany (London) Peel Hunt Hargreaves Lansdow
Slide 17: 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