| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 33.10 | -77 |
| Intrinsic value (DCF) | 25.12 | -83 |
| Graham-Dodd Method | 0.70 | -100 |
| Graham Formula | n/a |
Ecora Resources PLC (LSE: ECOR) is a London-based natural resource royalty and streaming company with a diversified portfolio of mining and exploration interests across Australia, the Americas, and Europe. Formerly known as Anglo Pacific Group plc, the company rebranded in 2022 to reflect its strategic focus on commodities critical to the global energy transition, including cobalt, copper, nickel, and vanadium. Ecora generates revenue by acquiring royalties on mining projects, providing upfront capital to miners in exchange for a percentage of future production or revenue. This asset-light model reduces operational risks while offering exposure to commodity price upside. The company’s portfolio spans steelmaking coal, iron ore, uranium, and precious metals, positioning it as a unique player in the basic materials sector. With a history dating back to 1967, Ecora leverages its industry expertise to invest in long-life, low-cost assets, aligning with global decarbonization trends and demand for battery metals.
Ecora Resources offers investors leveraged exposure to commodity price movements without the operational risks of traditional mining companies. Its royalty model provides stable cash flows, evidenced by £29.6M in operating cash flow (FY 2024), though net income was negative (£-9.8M) due to market volatility. The dividend yield (~2.5% at current share price) adds appeal, but high debt (£93.3M) and reliance on coal royalties (~50% of 2023 revenue) pose risks as the energy transition accelerates. The company’s pivot toward battery metals (e.g., Voisey’s Bay cobalt stream) is promising but requires successful execution. With a low beta (0.25), ECOR.L may suit investors seeking commodity diversification with lower volatility than miners.
Ecora competes in the niche royalty/streaming sector, differentiated by its focus on decarbonization-linked commodities and geographic diversification. Unlike peers concentrated in precious metals, Ecora’s portfolio includes bulk commodities (coal, iron ore) and future-facing metals (cobalt, nickel), balancing near-term cash flow with growth potential. Its competitive edge lies in partnerships with tier-1 miners like South32 and Vale, ensuring royalty stability. However, the company lacks the scale of sector leaders like Franco-Nevada, limiting its ability to bid on large-scale assets. Ecora’s coal-heavy legacy (Kestrel royalty contributed 44% of 2023 revenue) is a structural weakness as ESG pressures mount, though management is actively rebalancing toward copper and battery metals. The recent acquisition of a nickel royalty in Brazil demonstrates this shift but exposes the firm to development-stage project risks. Compared to peers, Ecora’s smaller market cap (£146M) reduces liquidity but may offer higher upside if commodity prices rally.