Ecora Resources Plc

Ecora Resources Plc is a junior copper and uranium royalty and streaming company headquartered in London, United Kingdom, operating primarily in Canada and South America. Key assets include Kestrel, Mantos Blancos, and Voisey'S Bay. Portfolio composition includes 7 cash-flowing royalties, 2 cash-flowing streams, 8 development royalties, and 5 exploration royalties. The organization provides capital to the natural resources sector through royalty and streaming agreements, focusing on commodities essential for global decarbonization and electrification trends. This business model offers investors top-line exposure to mining operations, providing a degree of protection against operating and capital cost inflation. The enterprise seeks to build a diversified portfolio, balanced by commodity, jurisdiction, and asset maturity to mitigate risk. A core element of its approach involves targeting low-cost operations managed by reputable operators in established jurisdictions. The company leverages an extensive industry network and a strong reputation to originate, structure, and execute accretive royalty and stream acquisitions. This model allows for participation in potential operational upside, such as mine life extensions and exploration success, without incurring direct operational or capital expenditures.

Strategic focus centers on growing and diversifying the portfolio of critical mineral royalties and streams to generate sustainable, long-term shareholder value. The investment framework relies on a rigorous screening and due diligence process, targeting assets that are low on the industry cost curve, are managed by strong operational teams, and meet clear internal rate of return objectives. A key pillar of the strategy is a disciplined capital allocation framework, updated in 2024 to prioritize growth and balance sheet strength while maintaining shareholder distributions. This policy allocates between 25% and 35% of free cash flow to dividends, freeing up capital for new investments. In the absence of suitable acquisitions, the organization prioritizes deleveraging. Management aims to build scale and income on a per-share basis, viewing the current market as a favorable environment for acquiring high-quality assets through its established industry network. The long-term objective is to transition the portfolio's value composition to be predominantly weighted towards future-facing commodities.

Board composition includes 7 directors, of whom 5 are independent non-executive directors. The board is led by a chairman appointed in 2024 who was independent upon appointment. Governance is structured through 4 key committees: Audit, Nomination, Remuneration, and Sustainability. The chief executive officer, who joined the organization in 2014 and was appointed to the role in 2022, leads the implementation of corporate strategy. The governance framework adheres to the UK Corporate Governance Code, and in 2024 the company transferred its listing to the Equity Shares (Commercial Companies) category to align with higher governance standards. A formal board effectiveness evaluation is conducted annually, supplemented by an externally facilitated review at least every 3 years, with the last one completed in 2023. A specific governance practice includes the appointment of a Designated Non-Executive Director for workforce engagement, who held 2 town hall meetings with employees during 2024 to ensure board awareness of employee perspectives.

The sustainability framework is aligned with globally recognized initiatives, including the UN Global Compact, for which the company submitted its second Communication on Progress in 2024. Climate-related disclosures are guided by the TCFD framework, and in 2024 the organization disclosed its financed emissions for the first time. The company has achieved its SBTi-approved near-term targets for Scope 1 and 2 emissions, reaching zero for these categories, and commits to offsetting corporate Scope 3 emissions. Independent assessments reflect this progress, with an MSCI rating maintained at AA and an improved Sustainalytics score of 7.7, indicating negligible risk. A comprehensive sustainability due diligence process is integrated into all investment decisions, and the company has previously declined opportunities due to sustainability-related concerns. In 2024, the group conducted its first Materiality Assessment, engaging key stakeholders to identify and prioritize sustainability issues such as biodiversity. Social commitment is demonstrated through a matched giving program for employee charitable efforts and partnerships with operators on community initiatives.

A key structural element is the significant ownership stake held by South32 SA Investments Limited, which owned approximately 16.9% of the company's issued capital as of March 2025. A formal relationship agreement was established with this major shareholder in 2022 to ensure the company's continued operational independence. This agreement includes provisions granting South32 the right to appoint a director to the board, a right that has not been exercised to date. Other substantial shareholders include Aberforth Partners with an 8.3% interest, Schroder Investment Management holding 6.4%, and Ransome’s Dock Limited with 3.2%. In 2024, the company executed a strategic divestiture, selling approximately 85% of its holding in Labrador Iron Ore Royalty Corporation. Recent acquisition activity includes the purchase of a rare earths royalty in 2024, which was accompanied by an equity investment in the project's majority owner, Rainbow Rare Earths Ltd. Subsequent to the 2024 year-end, the company completed the acquisition of a copper stream in February 2025.