AGPIF - New capital allocation framework positions Ecora firmly for Energy Transition growth
(NewsDirect)
Ecora Resources PLC CEO Marc BishopLafleche discusses the company's transition away from its Kestrelroyalty and its impact on the company's 2023 financials,highlighting periods of variable mining activity within the orchestralroyalty area.
In an interview withProactive's Stephen Gunnion, Bishop Lafleche said this transitionis part of a broader shift towards future-facing commodities,resulting in volume growth across the company's portfolioexcluding Kestrel.
Despite this,strong metal pricing has continued to make cash flow from royalties asignificant revenue source. For 2024 and 2025, volume growth isexpected across various assets, including Kestrel, Voisey's Bay,and others, contributing to the company's growth.
Bishop Lafleche said the currentchallenging market for mining companies presents opportunities forEcora, especially in leveraging the royalty partnership model as amainstream funding source. This dynamic allows Ecora to grow anddiversify its business while maintaining a disciplined investmentapproach and a high-quality asset base.
Ecora also announced an updated capital allocation framework,including a change in dividend policy, emphasizing growth, balancesheet strength, cash dividends, and share buybacks. The share buybackprogram is seen as a strategic move to capitalize on the currentdiscount to estimated net asset value, recycling capitaleffectively.
Development projects remain a significant part ofEcora's value proposition, with a shift from nearly all assetsbeing income-producing in 2015 to a more diversified asset base today.The company expects de-risking events and operating updates to provideclarity on income generation from these assets in the nearfuture.
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