Ecora’s 2025 results: base metals take the wheel as coal fades
Ecora Royalties’ full year numbers show a business that is steadily re-gearing towards critical minerals, with copper and cobalt now doing the heavy lifting. Portfolio contribution came in at $57.0m, down 10% year on year as the Kestrel steelmaking coal royalty stepped back, but base metals surged 150% to $28.5m and made up half of the total for the first time.
A stronger operating picture, a reversal of last year’s Voisey’s Bay impairment and tight cost control pulled the Group back to profit – $22.2m after tax versus a $9.8m loss in 2024 – and free cash flow rose 21% to $27.4m. Net debt closed the year at $85.5m after peaking at $124.6m post the $50.0m Mimbula copper stream acquisition, and the dividend for 2025 is 2.0c per share.
Headline numbers investors should know
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total portfolio contribution | $57.0m | $63.2m | (10%) |
| Base metals contribution | $28.5m | $11.4m | +150% |
| Kestrel (steelmaking coal) | $17.5m | $41.4m | (58%) |
| Profit after tax | $22.2m | $(9.8)m | n/a |
| Adjusted earnings per share | 8.86c | 11.43c | (22%) |
| Free cash flow | $27.4m | $22.1m | +21% |
| Net debt (year end) | $85.5m | $82.3m | +4% |
| Total dividend | 2.0c/share | 2.81c/share | (29%) |
Quick jargon check: a “royalty” is a percentage of revenue or production from a mine; a “stream” is the right to buy a portion of metal at a fixed cost, reselling it at market prices. Both give mining exposure without operating the mine.
Base metals now half the pie – copper and cobalt doing the work
This is the strategic shift in action. Base metals contribution rose to $28.5m and represented 50% of the portfolio. Copper is now firmly the core commodity.
Voisey’s Bay (cobalt) ramps hard
- Attributable cobalt volumes more than doubled to 448t, with an average realised price of $19.11/lb.
- Net portfolio contribution jumped to $15.3m from $5.0m.
- New mine plan extends life by four years to 2044 and accelerates near-term volumes – Ecora booked a $14.1m impairment reversal and a $9.8m deferred tax credit.
- 2026 expectation: 500-560t attributable as the underground mine reaches steady state.
Mantos Blancos (copper) hits records
- Record contribution of $9.5m, with copper production up 43% to 61.9kt, helped by debottlenecking.
- 2026 guidance is softer at 48-56kt due to a one-year lower grade period, with a Phase II expansion study due mid-2026.
Mimbula (copper stream) lands well
- $50.0m stream acquired in March 2025 – net contribution $2.9m on 400t received.
- Q4 run rate equivalent to 20ktpa of copper production at site.
- 2026 expectation: 1,080-1,130t of attributable copper as Ecora receives the first full year under the stream.
Other copper
- Carlota contributed $0.8m; volumes declined as the mine heads towards depletion in 2029.
Bulks and other: Kestrel shrinks, EVBC benefits from gold prices
Kestrel is doing what it said on the tin – stepping down as mining moves out of Ecora’s private royalty area and prices eased. Contribution fell to $17.5m on 2.2mt of sales with an average realised price of $143/t.
- 2026 outlook: 1.0-1.2mt of saleable production from Ecora’s area, weighted to H2. Royalty life expected to end in 2030.
- EVBC gold royalty delivered $3.2m thanks to record gold prices that lifted the applicable royalty rate to 3.00% despite lower volumes.
Specialty metals and uranium: steady contribution amid mix shifts
- Segment contribution was $7.6m (2024: $8.1m).
- McClean Lake toll milling receipts fell to $3.7m after a contractual step-down in rate, despite 19.2Mlbs processed.
- Four Mile uranium reverted to a normalised sales schedule – contribution rose to $2.2m.
- Maracás Menchen vanadium delivered $1.7m amid weak pricing, partly offset by operational improvements.
On the project side, Rainbow Rare Earths advanced Phalaborwa towards a Definitive Feasibility Study in 2026 with process refinements and an expanded resource including yttrium.
Cash flow, leverage and dividend: quietly stronger
Free cash flow improved to $27.4m, helped by the growing copper and cobalt streams and the sale of the non-core Dugbe gold royalty for $16.5m upfront. Borrowings ended at $93.3m with net debt at $85.5m. The leverage ratio was 2.0x adjusted EBITDA, comfortably inside the 3.5x covenant and expected to decline further in 2026 absent new deals.
The dividend policy targets 25-35% of average free cash flow from the previous two half-years. On that basis, the Board proposed a final dividend of 1.4c per share, taking the full-year to 2.0c per share.
What to watch in 2026: multiple value catalysts
- Santo Domingo (Capstone): progress towards a Final Investment Decision in H2 2026.
- Mantos Blancos: Phase II throughput and cathode re-leach study expected mid-2026.
- Phalaborwa (Rainbow): Definitive Feasibility Study targeted in 2026.
- Nifty (Cyprium): restart of cathode operations and DFS on mine restart.
- Voisey’s Bay: further volume ramp to steady state; cobalt exposure now extended to 2044.
- Mimbula: first full year of stream entitlements supports higher copper volumes.
Management also flagged that commodity prices have been volatile into 2026 given the conflict in Iran, but reiterated that long-term copper fundamentals remain strong.
My take: a cleaner, longer-duration royalty mix
This was an important transition year. Yes, the headline portfolio contribution fell 10% and adjusted EPS slipped to 8.86c, but the quality of earnings improved as short-dated coal made way for multi-decade copper and cobalt. The impairment reversal at Voisey’s Bay underscores that point – higher near-term volumes and extended life now support value that wasn’t recognised a year ago.
Positives I’d lean into:
- Base metals are now 50% of contribution – that should keep growing as Mimbula ramps and Kestrel winds down.
- Free cash flow up 21% with scope for more deleveraging in 2026 from a 2.0x leverage base.
- A busy catalysts calendar across copper and rare earths gives multiple shots on goal.
Areas to be mindful of:
- Kestrel’s step-down will continue – management is relying on base metals volume growth to more than offset.
- Adjusted earnings fell to $22.1m and the dividend trimmed to 2.0c – sensible against cash generation, but income seekers will notice.
- Execution risk sits with operators on expansion studies, restarts and financing – Ecora’s model depends on third-party delivery.
Overall, Ecora looks better aligned with the energy transition and digital infrastructure themes it targets. If copper and cobalt continue to tighten and the 2026 project milestones land, today’s portfolio feels set for a steadier, longer-duration cash flow profile – exactly what you want from a royalty and streaming company.
