RBC Maintains 'Outperform' Rating for Ecora Royalties Following Voisey's Bay Visit
RBC Capital Markets has reaffirmed its 'outperform' rating and 185p price target for Ecora Royalties PLC after a positive site visit to Voisey's Bay. This visit has increased confidence in the asset's operational capabilities and growth trajectory, with significant contributions expected from the site.
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RBC Capital Markets has maintained an 'outperform' rating and a price target of 185p for Ecora Royalties PLC after assessing the Voisey's Bay mine in Newfoundland and Labrador. The transition to underground mining is nearly complete, with throughput reaching nameplate capacity, and the Long Harbour processing facility has gained 63 operational days due to debottlenecking measures.
Voisey's Bay's revenue contribution is projected to rise from 10% in 2024 to 45% in 2026, representing 30% of net asset value. RBC anticipates cobalt deliveries of 500 to 560 tonnes this year, with an estimate of 550 tonnes.
A planned 35% expansion of mill capacity by 2030 is expected to generate an additional $10 million in annual revenue at long-term cobalt prices of $23.50 per pound. The bank also identifies exploration potential extending the mine life to 2044. RBC's revenue forecast stands at $74.3 million with adjusted EBITDA at $53.7 million for the current financial year, indicating stability amidst growth prospects.
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