Ecora Resources profit doubles, revenue surges in "outstanding" 2022

(Alliance News) - Ecora Resources PLC revenue jumped in 2022 as net debt dropped by more than ...

Alliance News 29 March, 2023 | 10:47AM
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(Alliance News) - Ecora Resources PLC revenue jumped in 2022 as net debt dropped by more than half on strong cash generation.

The London-based natural resources royalty company reported 2022 revenue from royalties and metal streams of USD141.9 million, jumping 66% from USD85.3 million in 2021.

Pretax profit was USD135.4 million, more than doubling from USD54.6 million a year ago.

The company declared a final dividend of 1.75 pence per share, bringing the total dividend to 7.00p per share.

Ecora noted that the dividend will be rebased into dollars at a 12-month average sterling exchange rate of about USD1.21. The company committed to maintaining a quarterly dividend of 1.75p per share, which will result in a payment of 2.125 cents. Shareholders will still be able to receive the dividend in sterling at conversion rates that will be declared each time.

Ecora noted that it more than halved its net debt to USD36 million at December 31, down 60% from USD90 million a year before, as a result of deleveraging in 2022 due to strong cash generation.

Chief Executive Officer Marc Bishop Lafleche said: "2022 was an outstanding year for Ecora, achieving record portfolio contribution for the second year running. We completed the acquisition of a high quality development stage copper nickel royalty portfolio from South32, further aligning our commodity exposure to the energy transition thematic, as well as recasting the company as a growth story.

"Looking ahead, there are a number of near-term development catalysts across the portfolio, as construction activities progress at West Musgrave and we look forward to an updated feasibility study for Santo Domingo this year. We remain well positioned for growth, with demand pressures on the sector increasing the investment opportunities to acquire accretive royalties."

Ecora shares rose 8.5% to 125.87p each in London on Wednesday morning.

By Harvey Dorset, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Ecora Resources PLC 86.73 GBX 1.55 -

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