Ecora Royalties (ECOR) Investor Update summary

Portfolio performance and growth outlook

• Strong volume growth in base metals and critical minerals, with Voisey’s Bay and Mantos Blancos delivering record results and Mimbula Copper Stream acquisition contributing to earnings.

• Sale of the Duke Bee gold royalty for up to $20 million accelerates deleveraging and allows capital reallocation to producing royalties aligned with strategic goals.

• By 2025, over half of revenue is expected from critical minerals, with a path to $50 million income from producing assets and potential for $100 million from development-stage assets by 2030.

• Portfolio diversification is a key milestone, reducing reliance on Kestrel and increasing exposure to long-life, high-quality assets across multiple commodities and jurisdictions.

Financial performance and capital allocation

• H1 2025 saw strong cash flow and 81% growth in base metals portfolio; H2 is expected to deliver further momentum and catch-up in cash flows.

• Effective tax rate in H1 was 10% (excluding cash flow asset), and dividend policy is set at 25–35% of free cash flow, with H1 payout at 0.6 cents per share.

• Net debt increased due to Mimbula acquisition but is expected to decrease significantly by year-end, targeting a leverage ratio below 1.5x by mid-2026.

• $180 million revolving credit facility in place with no amortizations until 2028, supporting ongoing growth.

Asset updates and operational highlights

• Voisey’s Bay achieved a steep ramp-up, with H2 cobalt deliveries matching H1, and is on track for steady-state production of 560 tons annually.

• Mantos Blancos delivered three consecutive record quarters, benefiting from copper prices above $4.50/lb and successful expansion.

• Mimbula Copper Stream is structured for immediate and stable cash flow, with targeted capacity of 56,000 tons of copper per year.

• Kestrel remains a short-life asset with about two years of meaningful cash flow left, contributing to deleveraging.

• Paterson Quarter East uranium discovery shows high-grade results, with potential for significant long-term royalty income.