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Ecora and Empress argue royalty model fits metals rally
Ecora said its first-quarter portfolio contribution doubled to $12.3 million, while Empress revenue more than tripled to $9.1 million on stronger metal prices and production.
Smaller royalty and streaming companies are pitching investors on the idea that a metals rally and improved demand for mine financing could help them narrow the valuation gap with larger peers, according to Mining.com. Executives from London-based Ecora Royalties and Empress Royalty made the case at the Rule Symposium on Resource Investment.
Ecora reported that its first-quarter portfolio contribution doubled to $12.3 million, driven largely by base metals. Empress said first-quarter revenue more than tripled to $9.1 million, attributing the jump to stronger production and higher metal prices that boosted returns.
The companies described royalties as a middle path for financing mine growth, where the royalty holder provides capital to mine operators and shares in upside tied to production and expansion. Empress CEO Alexandra Woodyer Sherron said the model avoids exposure to labor, unit costs, and fuel costs because operators build and run the mines, while royalty holders depend on those partners.
Ecora is also reshaping its exposure away from coal. The company said its base metals contribution rose 152% to $8.3 million even as some shipments of cobalt from Vale's Voisey's Bay shifted into the second quarter, and it targets being coal-free after 2030, with base metals expected to grow from about half of last year's contribution to as much as 85% by 2030.