RBC reiterates 'outperform' on Ecora Royalties after Voisey's Bay site visit boosts confidence

RBC Capital Markets has reiterated its 'outperform' standing and 185p terms people connected Ecora Royalties PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF, FRA:HGR) after a tract sojourn to the Voisey's Bay cobalt and copper excavation successful Newfoundland and Labrador near the slope with materially greater assurance successful the asset's operational transportation and maturation potential.

The note, from analysts Ben Davis, Laura Chan and Marina Calero, describes a step-change successful execution astatine Voisey's Bay, wherever the modulation to underground mining is present mostly implicit with throughput moving astatine nameplate capacity.

The excavation has besides added 63 operating days astatine the Long Harbour processing installation pursuing debottlenecking work, improving reliability and output consistency.

Voisey's Bay has grown rapidly successful value to Ecora's concern case, with its publication to radical gross rising from 10% successful 2024 to 45% successful 2026, portion representing 30% of nett plus worth (NAV).

RBC says structural improvements astatine the tract springiness it greater assurance that guided cobalt deliveries of 500 to 560 tonnes this twelvemonth are connected track, with the bank's ain estimation sitting astatine 550 tonnes.

The medium-term maturation accidental centres connected a planned 35% enlargement of mill capableness to 3.8 cardinal tonnes per annum (mtpa) from 2.8mtpa by 2030, with a pre-feasibility survey underway and a last concern determination expected successful 2028.

RBC estimates the enlargement could make an further $10 cardinal of gross per twelvemonth for Ecora astatine semipermanent cobalt prices of $23.50 per pound, alongside a 7% uplift to NAV.

The tract sojourn besides highlighted important exploration optionality, with mineral reserves of 28.5 cardinal tonnes supporting underground mining done astatine slightest 2039 and an 8.5-kilometre mineralised inclination offering further upside adjacent existing infrastructure, extending the bank's existent life-of-mine exemplary to 2044.

On valuation, RBC points to a spot price-to-NAV aggregate of 0.63 times arsenic compelling against inferior mining peers trading astatine 0.9 to 1.0 times.

Near-term catalysts cited by the slope see the Santo Domingo task fiscal concern determination expected successful the 2nd fractional of 2026 and the Mantos Blancos Phase 2 survey owed astir mid-year.

RBC's estimates are unchanged, with gross forecast astatine $74.3 cardinal and adjusted EBITDA astatine $53.7 cardinal for the existent fiscal year.