(Alliance News) - Ecora Resources PLC remained optimistic for the year ahead despite seeing portfolio contributions fall, and also announced an extension to its revolving credit facility.
Ecora is a South and North America-focused royalty and streaming company providing capital to mining sector.
For the year ended December 31, the firm reported a portfolio contribution of USD63.6 million, down considerably from USD143.2 million a year prior. It explained that this decline was primarily down to lower production levels within its private royalty area at Kestrel, as well as a normalisation of commodity prices from near record levels.
Nevertheless, Chief Executive Officer Marc Bishop Lafleche remained optimistic, predicting that "current commodity price levels would imply year-on-year portfolio contribution growth in the year ahead".
Portfolio contribution during the fourth quarter, which ran from October 1 to December 31, was USD14.4 million. Net debt as at December 31 was USD75 million, widened from USD36 million the previous year.
Also on Wednesday, Ecora said that it has agreed to extend a pre-existing revolving credit facility agreement with an existing syndicate of Scotiabank, CIBC and RBC.
According to the firm, the USD150 million facility includes an uncommitted accordion feature of up USD75 million to be used to fund royalty acquisitions which, if implemented, would take the potential borrowing capacity up to USD225 million.
The facility will now mature in January 2027, and can be extended twice by up to 12 months on each occasion. It is "largely on the same terms as the previous facility", Ecora said, and will be subject to secured overnight financing rate plus a ratchet between 2.25% and 4.00%.
"The mining sector continues to see underinvestment and a challenging market backdrop. We anticipate these conditions will persist over next 2-3 years, during which royalty financing should be a highly attractive source of capital. The extension of our revolving credit facility puts us in a strong position to continue to grow and diversify our portfolio, which currently offers the leading copper growth profile in the royalty sector," said CEO Lafleche.
Ecora Resources shares were trading 1.2% higher at 90.10 pence each in London on Wednesday afternoon.
By Holly Beveridge, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Ecora Res. (ECOR)