Ecora Royalties (LSE:ECOR) Q2 2026 Earnings Call

0:00 Hello everybody, my name is Geoff Callow, Head of Investor Relations at Ikora Royalties. I'd like to welcome you today to our half-year 2026 results call. I'm joined by our Chief Executive, Mark Bishop-LeFleche, and our Chief Financial Officer, Kevin Flynn. They'll take you through a short presentation and there'll be plenty of time for questions at the end. I'll just draw your attention to slide two, where there's a disclaimer, and then with that I'll hand over to Mark, who'll take you through the presentation.

0:28 Thank you for joining us today. It was a strong first half to 2026 with the Critical Minerals portfolio continuing to build on the momentum established during 2025. During the period, total portfolio contribution increased 75% to just over $31 million, certainly benefiting from both volumes growth as well as a strong commodity price environment. The 75% growth in portfolio contribution translated to a 509% increase in adjusted earnings, certainly a part of the scalability of the royalty model, and that benefit is certainly highlighted in these results.

1:15 The period also represents continued delivery in a number of areas. First, the Critical Minerals portfolio continues to demonstrate its cash generation potential. In particular, the base metals portfolio contribution increased just under 160% on the first half 2025 and was very much the key driver of top-line revenue growth. The second key point to raise is the reduction in net debt, now down to 75 million as of 30 June from 125 million this time last year. Strong cash generation is expected to continue to drive debt reduction in the second half of the year and beyond, with the potential for an additional benefit from commodity price tailwinds should the price of copper and other key commodity exposures remain at or above current levels.

2:11 The third area of delivery is in the area of the contribution and make up therein of our key sources of revenue, whereby we have increasingly transitioned our revenue from short dated assets to very much assets with mine lives measured in decades. And fourth, the performance in this period provides a partial indication of the increase in free cash flow conversion that's expected to occur in the future from the critical minerals portfolio and streams as the Kestrel royalty generates proportionally less revenue and time. And Kevin will pick up on this point later in the presentation. Last but certainly not least, The portfolio is now positioned for a number of near and medium-term potential milestones and de-risking events, which individually and in aggregate are expected to underpin this portfolio's organic revenue and free cash flow growth over the next five years and beyond. So with that, I'll hand it over to Kevin to take us through the financials.

3:17 Thanks Mark and thanks to everyone for joining the call. Turning to our financial highlights, another very strong period of portfolio contribution growth as Mark mentioned. We saw a 75% increase in total contribution from 17.9 million to 31.3 million in the period. base metals have once again driven this growth with strong operational performance across key assets combining with a very favorable commodity price backdrop and we'll look at the drivers of some of this growth on the next slide Earnings grew at a much higher pace than contribution in the period and this is really the point I want to focus on. We have been saying for some time now that as Kestrel reduces, the efficiency of our portfolio becomes much more noticeable.

4:05 And the reason for this is that Kestrel has a very high tax rate associated with it, which has impacted on our earnings in the past. The rest of our portfolio and group structure is much more efficient. So as we can see here, our earnings grew by 75%, but our adjusted earnings grew by five times. So this half year is the first time we're really seeing this trend for what the future complexion of our business is going to be starting to play out. This is also positively impacting on free cash flow conversion, which has enabled meaningful deleveraging in the period. And with our dividend formula now well established, we've declared a dividend for the first half of the year of 1.9 cent, which is more than three times that of the comparable period in 2025, and actually almost the same as what we paid out for 2025 as a whole.

4:54 Turning to slide six and looking at our portfolio, I'm going to focus primarily on the top three assets as these account for the majority of our income and the growth catalysts that we expect to come through in the second half of the year. Our base metals portfolio grew by 159% compared to the same period last year, very much building on the momentum which started to come through in the second half of last year. Importantly, that's not just driven by price, but strong underlying ramp-up in operational performance. And this is particularly evident at Voices Bay, where we saw a near doubling of volumes as the operation nears its steady-state capacity. Cobalt pricing was also strong in the period, with the average realized price of $28.50 per pound, comfortably in excess of the $16.50 we had in the same period last year. Our guidance at Voices for full year volumes remains unchanged, and based on consensus pricing in the second half, this should result in meaningful growth year on year. We are also pleased to see Valet-based metals exploring the potential to increase mill capacity by around 35% in and around 2030.

6:06 So we hope to see plenty more to come from Voices Bay over the coming years. Our copper portfolio was also a particular highlight in the period, performing strongly. Although, as expected, volumes at Mantis Blenkos were lower in the period, the copper prices remained at record levels, leading to a 26% increase in revenue from the royalty to 4.8 million, which, again, similar to the second half of last year, is almost a 20% cash yield on an annualized basis. Capstone have indicated that a PFS in relation to a Phase 2 expansion will be published in due course, and this could see volumes increase significantly from 2030 onwards. So similar to Voices Bay, plenty more to come from this royalty, along with a very favourable copper price environment.

6:53 The increase in Mimbula is partially explained by the fact that the first half of 2026 reflects a full six months of income compared to three months in 2025. The stream also benefited from strong copper prices in the period, which were about 37% higher compared to H1-25. The underlying operation continues to ramp up, and the commissioning of the SX capacity should drive near-term growth in volumes here. Just by way of reminder, we have structured this stream to provide some protections for a ramp-up operation, such that we receive a higher portion of metal for the first 15,000 tons of production. Just to pick out a few others, income from 4 Mile is not quite like for like as the first quarter of 2025 saw the operator continue to stockpile rather than sell, whereas this year we've seen a normalized sales profile.

7:47 It's also worth noting that we have some exposure to gold prices with EVBC, very much benefiting from very strong gold prices and this comes through with an 80% increase in contribution in the period. And finally, Kestrel. We saw around 100,000 tons of sales in the second quarter, which generated 1.3 million of income. This represented less than 5% of our overall contribution. We expect to see most of the 2026 volume in the third quarter, which is currently benefiting from a much higher coking coal price environment. At Kestrel, our overall guidance remains unchanged in the period as well. Overall, a very good first six months from the portfolio, with much more to come in the second half.

8:37 Turning to the next slide and how this contribution converts to earnings. I mentioned this in the first slide, but the conversion to earnings post-Kestrel was really demonstrated in the first half of this year. This is particularly evident in the tax line. In 2025, we had 1.9 million of tax on 31.3 million of contribution, which led to 3.2 million of adjusted earnings. This represented an effective tax rate on pre-tax adjusted earnings of 37%. The equivalent number for the first half of 2026, where Kestrel contributed only 5%, is less than 5% itself. And this is due to the tax losses that we've inherited at Voices Bay, which should ensure no cash tax payable for the foreseeable future.

9:24 and tax losses in our wider group are getting reactivated as income from Mantos and Mamboula start to ramp up also. The other virtue of the royalty model is scalability, and this is evident as overheads remain broadly flat despite FX movements, whilst contribution increased by 75%. And we hope that this will get even more meaningful as we continue to add to our income portfolio. So all of this combined to realize adjusted earnings per share of 7.8 cent in the first half. This was five times that of H1 last year and actually close to the 8.8 cent for the entirety of 2025. My next slide is a summary of our balance sheet. And I make this point every time, but I think it's always worth highlighting.

10:12 87% of our royalties are held on our balance sheet at the lower of fair value or amortized cost. And so they're never revalued upwards. As I mentioned earlier, there's potential for expansion at both Voices Bay and Mantos Blancos. So we won't see this incremental value reflected on our balance sheet. And so the balance sheet value is not reflective of commercial value. It's also worth highlighting as well that 85% of our royalty assets as of the end of June were in base metals, royalties and streams. And turning to my final slide, this slide highlights the continued deleveraging in the period with closing net debt of 75 million down from a peak of 125 million only 15 months previously.

11:00 As we can see in the bottom right, based on consensus pricing, we'd expect this to continue reducing in the second half towards 50 million by the end of the year. Our leverage number at the end of June was 1.35 times, which is very comfortable in the context of our permitted leverage of 3.5 times. Our headline facility is $180 million with a further $45 million accordion, bringing total borrowing capacity to $225 million, providing significant access to capital to fund further growth. So I just summarized the results for the first half. We saw significant portfolio contribution growth, which had a much more meaningful impact on earnings.

11:46 We saw continued deleveraging, ending the period with a strong balance sheet. We're benefiting from good pricing momentum, and we expect several portfolio updates in the coming months to de-risk the next wave of our organic growth. And with that, I'll hand back to Mark.

12:02 Well, thank you, Kevin. Starting the portfolio update with Voisey's Bay. As Kevin just mentioned, the operation achieved very strong performance in the period. And in fact, production throughput during the second quarter was actually above annualized nameplate capacity levels. So a very strong result by the Valley Base Metals team. Yukora received 266 tons of cobalt in the first half, which leaves us very much on track for our full year guidance of 500 to 560 tons of delivered cobalts. And in line with prior years, annual maintenance is planned at Voises Bay at the mine and the Long Harbor refinery during the second half of the year. So in the context of the strong operational performance, as Kevin mentioned, Valley Base Metals has indicated they're now focusing on the next potential phases of growth at this operation. And that really comes in two key areas.

12:55 First is the potential to expand the Voises Bay Mill throughput from 2.8 to 3.8 million tons a year and that are aligned throughput at the mine with throughput capacity at the Long Harbor Refinery. The second relates to life and mine expansion potential. We saw in 2025, Vale announced the drill program resulted in extensions of both the Reed Brook and Eastern Deep deposits, increasing the total mineral resource. And the 2026 program is focused on both near-term mine plan optimization, but importantly, aggressively seeking for long-term underground resource growth. Slides 12 and 13 are very much an illustration of that significant life of mine extension potential that exists at Voices Bay, with one slide around 2018 and the other fast-forwarded to today, and very much demonstrate why we continue to be highly confident this operation will see its life extended, and in time, there's a very real possibility that that life of mine is extended to be double, or if not more, the current plan.

14:06 Turning to Mantos Blancos, as mentioned as well by Kevin, Mantos Blancos continues to achieve really strong operational performance. And you can see this on the chart on the left hand of the slide, whereby throughput levels are very much now at or above nameplate design capacity. In terms of what's next, well, Capstone Copper submitted an environmental impact assessment during the first half and very much a step towards the next phase of potential growth at Mantos Blancos, which will be detailed and outlined in the Phase 2 expansion study that's targeted for release by Capstone Copper later this year. As a reminder, the phase two study contemplates, number one, increasing copper concentrate and number two, increasing copper cathode production.

14:53 And with varying degrees, both of these opportunities seek to leverage existing equipment, existing equipment's underutilized capacity. Capstone has indicated that following the receipt of environmental approvals and permits, as well as approximately one year of construction, Expanded Mantos Blancos capacity is expected to occur between 2030 and 2031. In addition to the Phase 2 expansion, however, there is also potential for resource growth at this operation to provide life of mine extension potential, with Capstone stating that the Mantos Blancos mineralization is open at both depth as well as in areas adjacent to the current mining operation. Turning now to the wider base metals portfolio.

15:44 The Phase 2 MIMBULA expansion project achieved a key milestone in June when new SX capacity began commissioning phase. The key areas of the Phase 2 expansion project now are first the construction of the ETL circuit and second the expansion of existing electrowinning capacity. At Santo Domingo, Capstone continues to advance the remaining workstreams towards a final investment decision targeted by Capstone for Q4 this year. And those remaining workstreams in advance of FID include advancing detailed engineering towards a target of 60% completion, and also including updating the capital cost estimates, which were released in 2024, but based on 2023 dollars.

16:30 Number two, further evaluating district infrastructure optimization opportunities. And then third, to secure final financing to proceed with the construction. At Nifty, Cyprium Metals has stated that the phase one of the Nifty Restart project is now approaching practical and mechanical completion, with first cathode expected in the second half of this year. Cyprium's Nifty Restart strategy is split into three phases. and Ciprium is progressing further studies in relation to the phase two and phase three concurrent to the phase one project. And keep in mind that Ecor's royalty entitlement at Nifty is subject to a cumulative copper production threshold.

17:17 And based on Ciprium's current NFTE production targets and timing guidance and targets for Phase 1 and Phase 3, we then have estimated that the production threshold would be triggered for entitling ECORA to royalty payments at least five years following the restart of Phase 1. So turning now to ECORA's specialty metals and uranium portfolio. We're very pleased to see a likewise strong result from the team at Largo, where a very strong operational improvement at the Maracas mentions mine resulted in a significant pickup in sales during the period, particularly those subject to our royalty entitlements. And certainly we benefited from a slight uptick as well in vanadium pentoxide prices.

18:03 Of note is that Largo has secured an approximately $60 million order of vanadium products from the U.S. Defense Logistics Agency, which very much highlights that this operation is a strategic supplier of vanadium products to both the American but more widely Western end markets. And third, very positive development relates to U.S. tariffs applicable to vanadium oxide and hydroxide imports from Brazil, which have received specific tariff exemptions, thereby preserving Marrakesh's mentions cost competitiveness, but also access to the U.S. market in the future. I Palabora Rainbow Rare Earths continues to progress the Palabora Rare Earths Project Definitive Feasibility Study towards completion and furthermore remains very well funded following an equity raise in the first half of this year.

19:04 I Patterson Corridor East Really, on that front, it's been more of the same, with NextGen continuing to report absolutely outstanding results from the drilling program. The mineralized footprint at Patterson Corridor East and high-grade subdomain has been expanded over the period, remains open in nearly all directions, and NextGen are continuing to advance their 2026 drill campaign over the second half of this year with the addition of a fifth drill rig. So we're very excited to see what comes next. In the near and medium term, as outlined on this slide, our operating partners are targeting a number of potential key de-risking milestones that relate to ECORA's next wave of organic growth.

19:50 And taking a step back, it doesn't seem that long ago that many of these were actually still a few years away. However... We now appear to be at the beginning of hopefully a potential multi-year phase when we start seeing these come through year on year on year. And these are very much layered across the entirety of eCore's portfolio, spanning producing, brownfield expansions, as well as near-term and longer-term development stage royalties. This is another way of looking at eCore's layered growth profile split into stage of development, further summarizing eCore's longer-term cash generation potential. The first layer relates to solely the producing portfolio, which is forecast this year to generate approximately $70 million based on consensus forecasts.

20:40 Ecor's second layer of organic growth relates to potential expansions of operations that are already in production, so specifically Mantos Blancos and Poises Bay. Both of these expansions appear, number one, economically attractive, and number two, relatively low-risk. And Vale is currently targeting a final investment decision to proceed with the Voices expansion in 2028, with Capstone targeting the expanded Mantos Blancos production within five years. And please note that neither of these two potential expansions are actually currently included in any of ECORA research analysts' forecasts. although we certainly would expect this to change as the likelihood of the expansions are de-risked and further detailed. For example, via the publication of the Mantos Blancos Phase 2 study later this year.

21:29 The third layer of our organic growth profile relates to new mines or operations that are expected or restart operations that are targeted to be in production by our operator partners within the next five years. and the figure shown on the page is that spot and steady state production targets in the longer term. So you can see when you think back to the catalyst page we just discussed and you overlay that with our next five years of potential free cash flow growth, this business really is in a position to further de-risk our growth profile and in some ways really build upon what's already occurred in the producing portfolio. Longer term, this bucket is not expected to generate income for the next five years. However, this still has a potential to drive significant share price appreciation as these projects see incremental de-risking events.

22:30 For example, from the Canariaco project, which is now owned by Fortescue, or NextGen's Patterson Corridor East, which continues to deliver very strong exploration results and in time a resource and beyond. So in parallel to ECORA's near-term potential catalysts and number two, expected strong organic growth profile over the medium term, we're also in the final, most impactful stage of a multi-year transformation. where first we've seen our sources of revenue go from primarily one asset to a much more diversified portfolio. Number two, we've seen our sources of revenue shift from primarily coking coal to critical minerals.

23:17 And certainly not least, we've also seen our revenue profile go from very short-dated, measured in years, to operations primarily with mine lives that run for decades. So this is a major change in this business. And in addition to that, in the period, we've also adopted a growth-focused capital allocation framework, which provides clarity of purpose and which has already delivered benefits in the form of supporting growth, but as Kevin mentioned as well, allowing for a relatively much more rapid pace of deleveraging following an acquisition. So when you combine the portfolio's significantly improving quality of earnings with the near and medium-term potential de-risking events targeted by our operating partners, a strong 5U organic revenue growth profile, and likewise strong fundamental outlook for Ecorra's key commodity exposures such as copper, this provides us, at Ecorra anyways, great confidence in the near and long-term outlook for Ecorra and is the basis for belief that Ecorra continues to offer investors a really highly attractive entry point.

24:25 So to conclude with a brief outlook, looking ahead, number one, we're on track to deliver volume growth from our key base metals royalties during 2026. We're very well positioned for multiple near-term catalysts, some potentially as soon as the second half of this year. We expect further debt reduction in the second half of this year, with commodity prices potentially providing an additional benefit should they remain at or above current levels. Thank you very much, sir. Ladies and gentlemen, if you'd like to ask any audio questions, please press star 1 on your telephone keypad and just make sure that your line is not muted to allow you to reach your equipment. Star 1 for audio questions.

25:32 Our very first audio question is coming from Richard Hatch, close from Barenburg. Please go ahead, Richard. Your line is open. Thank you.

25:39 Yeah, thanks. Hi, team, and congrats on a good set of numbers. Just one question. I mean, just looking at the balance sheet and how quickly it's deleveraging as you're guiding to sort of 50 million on consensus net debt by the end of this year, 25 million, we then start turning into a conversation where perhaps the balance sheet is underlevered. So can you just Just talk us through where your head's at in terms of the scope for additional shareholder returns if the right growth opportunities aren't made available to you in the next couple of years. Thanks.

26:17 Hi, Richard. Thanks for the question. Our priority and focus at the moment is to continue to grow and diversify Equora. As you know, over the past years, to support a number of acquisitions, we have used our revolving credit facility as a tool to transact, and then with a clear deleveraging path, subsequently delevered, and again, during the facility to continue to grow and diversify, which very much remains the aim and the focus. uh we've also been very focused on ensuring that any leverage to acquire a transaction is accompanied by a clear deleveraging plan that's robust that does not uh over lever the business but that being said in the future we can would anticipate continuing to to use our facility uh to continue to grow okay thanks very much for Thank you for your question, sir.

27:22 Ladies and gentlemen, once again, if you have any questions, please press star 1. And I'll go to Riley Ventas of HVM Research. Please go ahead.

27:33 Hey, guys. Congrats on the strong first half. Just taking on the potential acquisitions, can you remind us your kind of investment criteria in terms of projects that you're evaluating?

27:48 Absolutely. Well, thank you for the question. At the moment, you could shape our focus into two key areas. So in terms of quantum, in other words, ticket size, as well as majority of attention over opportunities that are towards the front end of the development curve, if not already into production. and secondly, we would consider opportunities that are at the earlier stage of development, but certainly in lower investment amounts. In terms of commodity focus, our remit includes critical minerals, although we certainly have a preference if possible and available subject to the opportunity set to retain the core of this portfolio in copper and other base metals.

28:39 And from a jurisdiction perspective, we continue to focus on well-established mining jurisdictions. And of course, from a team perspective, as a royalty company, we clearly don't control the operations. So partnering with the right counterparties who have the track records of execution in terms of project development, as well as operational expertise remains paramount. That's certainly not all we consider when we do a transaction, but are amongst the key points.

29:13 Okay, thanks, Mark. And then maybe just one more for me on Boise Bay. I know Q2 included some catch up from Q1 based on the timing of deliveries. Can you give us a sense of how much of Q2 was attributed to those timing benefits? And then as you ramp the ramp up being kind of largely complete, what do you see as kind of the steady state contributions for the next couple quarters here?

29:37 Yeah, so I think Riley, we're always going to anticipate seeing some variability at Boise's Bay just as a result of the timing of cobalt shipments. And for those who aren't aware, the Boise's Bay stream is settled in physical cobalt. So unlike the rest of our portfolio, which is calculated by reference to production in a quarterly period, at Voisy's there's an additional step which is for those volumes to be shipped to a warehouse in Ramadan where we take possession of that cobalt and on sell it to our marketing partner so in terms of the second part of your question it was measured in a handful of deliveries so not in and of itself the key driver between, you know, the volume deliveries between Q1 and Q2.

30:27 But in any event, it was great to see those volumes catch up in Q2 as expected. And looking ahead, this asset this year, our guidance is 500 to 560 tons of attributable cobalt. Historically, the steady state production capacity on a life and mine average basis has been around that 560 tons per year mark, some years above, some years below. But as we mentioned earlier on the call, Vale is now exploring the possibility to extend throughput, which would obviously increase our steady state volume entitlements if they were to proceed with the mill expansion.

31:05 Okay. Thanks, Mark. That's it for me. Good luck in the second half. Thank you. Thank you. Thanks for your questions, Roddy. Next, we'll be going to Ben Davis of RBC Capital Markets. Please go ahead. Your line is open, sir.

31:21 Thanks all for the presentation. Great set of numbers. Just quickly on PIAWI, the nickel project, I was just curious where we are in terms of construction funding. Is there any sort of more of an update you can give on how things are progressing there? And also, if you can remind us if they ever did receive that funding from the US government at the end of the Biden administration?

31:47 So generally in terms of the project, I'd say the team continues to be very focused and very active towards securing project financing. It's a great team that's only gotten better over time as they've attracted some very experienced individuals, both particularly in terms of project execution. And so that's been great to see. The backdrop for funding nickel projects clearly was challenging, particularly during 2025. That certainly is beginning to change as a result of cost pressures, potentially structural rather than temporary. So I think the overall outlook for this project from a funding perspective is certainly improved. We don't have any immediate updates beyond that.

32:39 But as and when these are made available, we'll certainly pass that on.

32:45 Great, thank you. And just more generally, in terms of actually getting the kind of the deals you're looking at done, I mean, is there anything you can say on, I mean, is it getting harder, easier in terms of competing sources of capital out there in terms of kind of government funding for projects that is making it trickier to get the deals done?

33:07 Yeah, it's an interesting question. And I'd say depending on where you are in the cycle and the economic backdrop generally, the opportunities that can somewhat shift. But I think actually where we are today, There's certainly a group of opportunities that are open and are possible, and that group is a function of the fact that there is equity capital available and there's debt capital available. As you know, eCora can be the only financing solution in some circumstances, but at other points in time, we are part of the wider capital structure. I think so to answer your question more directly, there are certainly some opportunities where that collection of wider financing and the availability of other financing through equity debt and also from the form of other participants potentially creates opportunities that might not otherwise be available.

34:02 More generally on the pipeline, our focus continues to be to continue to grow and diversify the business, obviously within a very disciplined way. But we're pleased with the state of the offering at the moment and You know, in time, we're very confident that we'll continue to grow and diversify the business. We're pleased with what we're seeing in the market at the moment. We're seeing opportunities. But in terms of exactly when and how the stars align, that's always a difficult thing to predict in the royalty sector. As you know, in particular, in circumstances where we're one piece of the capital structure. And while we might be ready to go, the other parts are not quite there. That's not always within our control.

34:45 Great. Thanks very much. Thanks so much, sir. Our next question will be coming from Tim Hough of Canaccord. Please go ahead, Tim.

34:56 Yeah, thanks very much. Yeah, just one question, sort of a follow-up on pipeline, like a couple of the other questions. First half 25 to first half 26, you guys moved from being like 50%. Your base metals portfolio was about 50% of contribution moved to over 70 in the first half of this year which in my mind really good news um you mentioned previously that you you continue to want to see the base metals portion particularly copper being um the focus of this portfolio and i'm just wondering sort of from a diversification perspective i guess what when does at what level do you guys start to think about maybe needing to build out the specialty metals uranium portfolio a little bit more I mean I know you've got Patterson Corridor East and you've got Palabora in there as well so I mean those will be built out at some point in time but equally so you've got a lot of copper projects coming up in the portfolio in the pipeline as well so I'm just a little bit of a maybe background thought as to how you see that developing going forward between the base metals and the specialty metals parts of the portfolios?

36:17 Hi, Tim. Thanks for the question. Look, I think when we think about this portfolio's construction, thematically, we've sought to build it in such a way that the commodity exposure transcends electrification. And that covers both renewable energy, energy storage, data centers, batteries, urbanization, just old fashioned white goods. The one commodity that cuts across all these trends is copper and therefore we're quite pleased to have copper as the core of the portfolio But beyond that look our strategy has never been copper only it's been a critical mineral strategy And so we certainly do consider other commodities within the critical minerals framework That being said, we do feel that retaining copper at the core of this portfolio, given it, as I mentioned, transcends the electrification trend, firmly aligns the business, its prospects to a very strong fundamental outlook for copper as a result.

37:20 We at this time are not focused on only copper but you know if we're seeing copper opportunities all else being equal we probably would lean to more more copper than you know a more niche commodity but I think it really needs to be considered in the specifics of the circumstance which includes factors like jurisdiction management team project execution risk returns profile entry point and all these factors would be taken into considering into consideration if one were ever to be doing sort of a side-by-side of an opportunity.

37:55 Okay, that's really helpful. Thank you. Thank you very much, Tim. As we have no further audio questions at this time, I'm going to call over to Scott to take any questions submitted through webcast. Thank you. Thanks very much, George. Just a reminder, if you'd like to submit a question through the webcast, please do so in using the toolbar below. First question is you've spent several years transforming Cora from a Kestrel dependent royalty company into a much more diversified critical minerals platform and H1 feels like one of the first periods where that architecture is really starting to show through in the numbers. Which part of the portfolio do you think the market is still under appreciates most today?

38:45 Look, I think The ramp up in cash generational potential that existed within the producing portfolio, assets like Boise's Bay, Mentos Blancos, that has been signaled and telegraphed for many years to come. So obviously, it's delightful to see that now being demonstrated. But beyond that, there's significant growth in this potential, as we mentioned earlier in the presentation, starting with just breadth expansion of assets already in production, like Mantos Blancos and Foisies Bay. And then beyond that, a five-year greenfield or a restart growth, organic growth pipeline, and of course, longer term assets. So I'd say, I think thus far, most of the focus, frankly, appears to us to be really on that first step, which is just demonstrating the free cashflow generation potential that exists from our producing asset base. and also is why we look to the future with a lot of excitement and optimism in particular given the significant milestones and de-risking events that are expected in the near and medium term that ultimately will thus translate hopefully to much more confidence in the five-year organic growth profile and beyond.

40:03 Thank you for that and that's all the questions we've got time for at the moment. Mark maybe I could hand back to yourself for any closing remarks.

40:12 In short, it's a great set of numbers. We're really pleased with the performance and we're well positioned for a strong H2 and beyond. So thank you very much for your time today. If you have any questions or any further questions, I encourage you to reach out to ourselves at eCora, ir.eCoraRoyalties.com.