Ecora Resources Share Discussion Threads

[the deacon] 11/7/2024 12:35

No, most of that is mothballing the operating assets in the region. Other than regional exploration there won't be anything happening at WM, unfortunately

[sword77] 11/7/2024 12:24

BHP: "We will continue to invest approximately AU$450 million (US$300 million) per annum in the Western Australia Nickel facilities to enable a potential re-start"

Does that mean they continue the construction of WM, but only decide in 2027 if they turn it on ore not?

[the deacon] 11/7/2024 11:39

4-5 years is probably too optimistic in fairness. Probably more like 6-7 now

[the deacon] 11/7/2024 11:38

Just depends what you're buying ECOR for. If it's for copper exposure, then there's better royalty and streaming options. Agree that 4-5 years from now ECOR could be generating $100m+ in receipts again, but how low does this need to go until the market starts to value it on future cashflows? Santo Domingo news is crucial now.

[reddirish] 11/7/2024 11:19

It's a very odd commodities market just now, and this management team appears to have positioned the company at absolutely the wrong place at the wrong time. However, I'm of the opinion that higher global inflation is here to stay, and on that basis I've been looking for a medium term materials holding - and while ECOR could certainly go a fair bit lower in the short term, 66p is a low enough entry price to bring me in. I'll continue to add over the next month or two, whatever the price does, as I'm looking 5 years out.

[the deacon] 11/7/2024 09:40

Vares mine - apologies. Fat fingers!

[the deacon] 11/7/2024 09:39

I'd love to know whether Ecora submitted a bid for the copper steam at Adriatic's Varea silver mine that hits nameplate production in Q4 this year. Gold Royalty picked it up a week or so ago, and that'll pay them circa $8m per annum going forward. Decent long life low cost operation with a good management team in place. Ecora should have been all over that

[the deacon] 11/7/2024 09:23

Reading between the lines at Capstone, I don't think Santo Domingo is a slam dunk either. They've talked in the past of it being high cost and 'difficult' to integrate. Obviously a buoyant copper market/price can help out there, but the next few years for ECOR are potentially looking very thin indeed.

[laurence llewelyn binliner] 11/7/2024 09:13

#The Deacon, it was always a risk but a decision we were waiting for, which leaves the Capstone - Santo Domingo DFS then build to pick up the income shortfall from 2027, building the portfolio out is a lifetimes work with 15/20/25 year mine life projects, we just need to keep adding and see what comes along next, the dividend payouts are 50% now so we can still restore our cash/debt position..

Disappointing, but not surprising by BHP, H2 Kestrel expected to be zip, but we do have the VB upgrade on deliveries to come plus the rest of the PF income..

I did not agree with going all in on the NZ / future facing green wave, selling Narrabri for a loss was a mistake IMO, a profitable diverse PF is where we need to be not so worried about what people think about the PF content, business is about making reliable, repeatable profits..

[gooseman1979] 11/7/2024 09:06

Substantial % loss for me, but time to move on now. Has to be a good chance that Piaui is not further developed in the current Nickel market environment.

[the deacon] 11/7/2024 08:54

Beat me to it Goose. Yes, poor situation for Ecora. Combined with the final paragraph in this morning's RNS it's difficult to see any catalyst here. The company is desperate for an immediately cashflowing royalty, or a bit of M&A. Disappointing that management had good sight on this, having known the Kestrel situation - yet did little about it, other than buy some higher cost development assets

[the deacon] 11/7/2024 08:50

BHP news overnight. Suspending activities at West Musgrave until Feb 2027. BHP will review the situation prior to that time

[gooseman1979] 11/7/2024 08:49

I'm out. WM canned until early 2027:

hxxps://www.bhp.com/news/media-centre/releases/2024/07/western-australia-nickel-to-temporarily-suspend-operations

[cocopah] 09/7/2024 17:58

The old adage, fools rush in … I would imagine this has quite a bit further to go given the fundamentals in play.

It wouldn’t surprise me if this goes into the 50s. My only hope is that we don’t get taken out under a £1. Fortunately, if we do it, it will only cost me a couple of grand. 🫣🤷‍♂️

[laurence llewelyn binliner] 08/7/2024 18:08

#1Knocker, back on my radar too at these levels, much will depend on the BHP update on build progress and FID at WM due in August, so I am holding out to see that 1st..

[quepassa] 08/7/2024 15:04

758 refers

[1knocker] 08/7/2024 15:01

Everything (well, nearly everything) becomes a respectable bet if the price is low enough. I am beginning to look at ECOR with more interest again. I might put in a limit order at 65, but more likely 60. When a stock craters the way ECOPR has there is no knowing how low it may go before the market sees any value in it.

[quepassa] 02/7/2024 15:45

"the patient investor"...


...will either need to be


Jobe

or

Lazarus

[laurence llewelyn binliner] 02/7/2024 15:12

#The Deacon, quote : looks like a sensible and attractive move says Berenebrg, which calculates that for the USD8.5M cost, the NPV is USD13M and a rate of return around 11%..

The market may well not give Ecora full credit for this deal yet, as it focuses on the balance sheet and medium-term royalty production time frame, but for patient investors, we think the value of this deal will become clear in time..

[the deacon] 02/7/2024 13:33

https://www.proactiveinvestors.co.uk/companies/news/1050947/ecora-and-rainbow-royalty-a-good-deal-for-both-broker-suggests-1050947.html

[quepassa] 02/7/2024 09:54

how kind and gracious.

you nicely swerved the question, Deek.

i must give you credit for that.

Keir Starmer would be proud of you.

[swanvesta] 02/7/2024 09:49

"This should be a 4 fold investment multiple return (with the Rainbow CG) over its 16 year life and what investors should look at IMO"

That's a great way to fail at this game. Investors should NEVER be swayed by nominal returns years/decades in the future. They absolutely need to consider cost of capital, as well as all the typical risks, overheads and taxes.

[the deacon] 02/7/2024 09:27

I like to give everyone a second chance QP... Even you..

[quepassa] 02/7/2024 09:23

Hey Deek,

You said you had me on filter and were not reading my posts.


1. Please explain how you are reading my posts (let alone asking me questions), if I am on filter.

....are you perhaps just a curtain-twitcher and/or plain old common fibber?


Re USA and TechMet


2. Through your comments, you display total ignorance about how foreign Govenment
Development Agencies provide financial support to other countries.

3. Lots of companies invest heavily in South Africa but like TechMet they have a totally different risk profile and risk appetite.



ALL IMO. DYOR.
QP

[the deacon] 02/7/2024 09:00

MBL interview update with the KE Reporthttps://youtu.be/ieGR8d-KYg8?si=Wa20GGYb691-QdEm