Investing in

the present,

changing

thefuture

Ecora Resources PLC

Annual Report and Accounts 2023

Ecora Resources PLC Annual Report and Accounts 2023

We are a leading royalty company focused

on supporting the supply ofcommodities

essential to creating asustainable future.

Alternative performance measures

Throughout this report a number of

financial measures are used to assess

the Group’s performance. The measures

are defined below and, with the

exception of operating profit/(loss),

arenon-IFRS measures because they

exclude amounts that are included in, or

include amounts that are excluded from,

the most directly comparable measure

calculated and presented in accordance

with IFRS, or are calculated using financial

measures that are not calculated in

accordance with IFRS. The non-IFRS

measures may not be comparable to

other similarly titled measures used

byother companies and have limitations

as analytical tools and should not be

considered in isolation or as a substitute

for analysis of the Group’s operating

results as reported under IFRS. The

Group does not regard these non-IFRS

measures as a substitute for, orsuperior

to, the equivalent measures calculated

and presented in accordance with IFRS

or those calculated using financial

measures that are calculated in

accordance with IFRS.

Portfolio contribution Portfolio

contribution reflects the underlying

performance of the Group’s assets

both in terms of those already in

production and the timing of the

Group’s development royalties

cominginto production.

Portfolio contribution is royalty and

stream-related revenue (refer to note

5) plus royalties received or receivable

from royalty financial instruments

carried at fair value through profit or

loss (‘FVTPL’) and principal repayment

received under the Denison financing

agreement (refer to note 22). Refer to

note 36 to the financial statements

forportfolio contribution.

Operating profit/(loss) Operating

profit/(loss) represents the Group’s

underlying operating performance

from its royalty and stream interests.

Operating profit/(loss) is royalty

income, less amortisation of royalties

and operating expenses, and excludes

impairments, revaluations and gain/

(loss) on disposals. Operating profit/

(loss) reconciles to ‘operating profit/

(loss) before impairments, revaluations

and gains/(losses) on disposals’ in

theincome statement.

Adjusted earnings per share

Adjusted earnings represents the

Group’s underlying operating

performance from core activities.

Adjusted earnings is the profit/ (loss)

attributable to equity holders, plus

royalties received from royalty financial

instruments carried at fair value

through profit or loss, less all valuation

movements and impairments (which

are non-cash adjustments that arise

primarily due to changes in commodity

prices), together with amortisation

charges, foreign exchange gains/

(losses), any associated deferred

taxand any profit or loss on

non-coreasset disposals.

Adjusted earnings divided by the

weighted average number of shares

inissue gives adjusted earnings per

share. Refer to note 12 to the

financialstatements for adjusted

earnings/(loss) per share.

Dividend cover Dividend cover is

calculated as the number of times

adjusted earnings per share exceeds

the dividend per share. Refer to note

13 to the financial statements for

dividend cover.

Free cash flow per share Free cash

flow per share is calculated by dividing

net cash generated from operating

activities, plus proceeds from the

disposal of non-core assets and any

cash considered as repayment of

principal, less finance costs, by the

weighted average number of shares in

issue. Refer to note35 to the financial

statements for free cash flow pershare.

Strategic report

1 Our purpose

Highlights

Ecora at a glance

Our portfolio

Our markets

Chairman’s statement

Investment case

Chief Executive Officer’s statement

Our business model

Our strategy

Key performance indicators

Supporting a sustainable future

Business review

Financial review

Section 172(1) statement

Our stakeholders

Sustainability

Risk management

Emerging risks

Principal risks

Task Force on Climate-related

FinancialDisclosures

Viability Statement

Governance report

83 Corporate governance

Board of Directors

Nomination Committee

Audit Committee

101

Sustainability Committee

103

Remuneration Committee

109

Directors’ remuneration policy

116

Annual Remuneration Report for 2023

124

Directors’ report

128

Statement of Directors’ responsibilities

Financial statements

129 Independent auditor’s report to the

members of Ecora Resources PLC

136

Consolidated income statement

137

Consolidated statement

ofcomprehensive income

138

Consolidated balance sheet

andCompany balance sheet

139

Consolidated statement of changes

inequity

140

Company statement of changes in equity

141

Consolidated statement of cash flows

and Company statement of cash flows

142

Notes to the consolidated

financialstatements

Other information

195 Shareholder statistics

196 Other information

197 Forward looking statements

Investing in the

present, changing

the future

Discover more

online:

Our purpose

Providing capital to the mining sector required to

supplythecommoditiescentral to a sustainable future.

Our strategy

Portfolio diversification

We seek diversity of commodities,

jurisdiction and asset maturity to

balance portfolio risk.

Commodity selection

Our focus is on providing investors

withexposure to commodities that

willsupport a sustainable future and

makinginvestments in line with our

investment criteria.

Capital allocation

We balance investing for growth,

maintaining a strong balance sheet

withproviding a royalty sector leading

dividend yield.

Our sustainability summary

Science Based Target

initiative (“SBTi”)

SBTi approved emissions targets.

UN Global Compact

Submitted our first Communication on

Progress (COP).

Improved ratings

MSCI rating improved to AA (fromA).

Sustainalytics rating 12.3(lowrisk).

Our values

Sustainability

We believe long-term

valuecan only be achieved

throughsustainable and

responsibleinvestment.

Integrity

We promote transparency

and build trust through

honest relationships.

Respect and inclusion

We create an environment

where everyone is seen,

heard, valued and

empowered tosucceed.

Collaboration

We believe teamwork is

essential to achieving our

vision and delivering value

toour stakeholders.

Read more on pages 42 to 46

‘23

* Dividends were paid in GBp until 2023 when the Group started to pay dividends in USc.

2 Ecora Resources PLC Annual Report and Accounts 2023

Science Based Targets

initiative(SBTi)

During 2023 the SBTi for small to medium sized businesses

approved Ecora’s target of reducingScope 1 and 2 GHG

emissions 46% by 2030 from the baseline year of 2019,

and to measure and reduce its Scope 3 emissions.

Portfolio and sustainability highlights

Improved MSCI and

Sustainalytics score

During the year the Group’s MSCI rating improved from

Ato AA, and Sustainalytics score improved to 12.3,

ratingEcora as low risk.

12.3

Sustainalytics score

Vizcachitas royalty acquisition

Acquired a 0.25% Net Smelter Return royalty over all

metal production from the open pit of the Vizcachitas

copper project in Chile. A rare opportunity toacquire

aroyalty over one of the world’s largest undeveloped

copper projects located in a well-established

miningjurisdiction.

LIORC disposal

The Group sold ~60% of its holding in the Labrador Iron

Ore Royalty Company. This realised C$18.9m, a gain on

disposal of C$4.1m and representing a total pre-tax

return on investment of c. 110%.

Four Mile legal resolution

A favourable judgment was delivered by the Supreme

Court of Western Australia, Court of Appeal in Ecora’s

legal dispute with Quasar Resources Pty Ltd, the owner

and operator of the Four Mile uranium mine. This saw

A$9.3m released to the income statement in Q4 2023.

A$9.3m

released to income statement

Read more on p37

3Ecora Resources PLC Annual Report and Accounts 2023

Strategic report Governance report Financial statements

Our portfolio

What we do

Our vision is to be globally recognised

asthe royalty company of choice

synonymous with commodities that

support a sustainable future by

continuing to grow and diversify our

royalty portfolio in line with our strategy.

We will achieve this through building

adiversified portfolio of scale over

highquality assets that drives low

volatility earnings growth and

shareholder returns.

Our strategy is to acquire royalties and

streams over low cost operations and

projects with strong management teams,

in well-established mining jurisdictions.

Our portfolio has been re-weighted to

provide material exposure to this

commodity basket and we have

successfully transitioned from a coal

orientated royalty business in 2014 to

one that by 2026 will be materially coal

free and comprise over 90% exposure to

commodities that support a sustainable

future. The fundamental demand

outlook for these commodities over the

next decade is very strong, which should

significantly increase the value of our

royalty portfolio.

How we do it

Royalties explained

A natural resources royalty is a non-

operating interest in a project that

provides the royalty holder with the

rightto a percentage of the revenues

generated from the extraction and sale

of minerals from a specified area

ofinterest. Aroyalty holder is not

generally obligated tocontribute

towardsoperating or capital costs,

norenvironmental or reclamation

liabilities. A primary royalty is entered

into when the royalty company makes

anup-front cash payment to the

mineoperator in return for a royalty.

Asecondary royalty is an existing royalty

that is acquired directly from the owner

of the royalty.

Streams explained

A metal stream is an agreement that

provides, in exchange for an upfront

payment, the right to purchase all or a

portion of one or more metals produced

from a mine. Streams, whilst providing

asimilar outcome for Ecora, are not

royalties because they do not constitute

an interest in land and there is an

ongoing cash payment required to

purchase the physical metal. However,

astream holder is not ordinarily required

to contribute towards operating or

capital costs, nor environmental or

reclamation liabilities.

Portfolio –

diversifiedexposure*

* Based on consensus sell side analyst NAV estimates

as at 22 March 2024

Geographic exposure*

USA & Canada 32%

Brazil & Chile 41%

Australia 26%

Other 1%

95%

of the portfolio in

OECD countries

Commodity exposure*

Base metals 75%

Uranium 5%

Vanadium 5%

Steelmaking coal 8%

Other 7%

88%

of the portfolio is

future facing

Stage of production*

Producing 53%

In construction 16%

Development 27%

Early-stage 4%

53%

of the portfolio is

producing

ECORA AT A GLANCE

Read more on p18

32%

USA & Canada

41%

Brazil & Chile

26%

Australia

5Ecora Resources PLC Annual Report and Accounts 2023

Strategic report Governance report Financial statements

Exposure to world-class

operators

Royalties cover mining operations run by some

of the largest mining companies in the world.

OUR PORTFOLIO

Base metals

Asset Commodity Location Development stage

Operator/

developer Royalty basis Mine life See more

Mantos Blancos Copper Chile Producing Capstone Copper 1.525% NSR 2038 p27

Carlota Copper US Producing KGHM 5.0% NSR 2024/2025 p30

West Musgrave Nickel and copper Australia In construction BHP 2.0% NSR 24 years p32

Santo Domingo Copper and cobalt Chile Development Capstone Copper 2.0% NSR 18 years p28

Piauí Nickel and cobalt Brazil Development Brazilian Nickel 1.60% GRR 18 years p33

Vizcachitas Copper Chile Development Los Andes Copper 1% NSR 26 years p29

Nifty Copper Australia Development Cyprium 1.5% GRR 15 years p30

Cañariaco Copper and gold Peru Early stage Candente Copper 0.5% NSR 28 years p31

Speciality and battery metals

Asset Commodity Location Development stage

Operator/

developer Royalty basis Mine life See more

Voisey’s Bay Cobalt Canada Producing Vale 22.82% stream 2035 p34

Maracás Menchen Vanadium Brazil Producing Largo Resources 2.0% NSR 2041 p35

Uranium

Asset Commodity Location Development stage

Operator/

developer Royalty basis Mine life See more

McClean Lake mill Uranium Canada Producing Orano

22.5% of toll

millingrevenue

2037 p36

Four Mile Uranium Australia Producing Quasar Resources 1.0% NSR 2029 p37

Salamanca Uranium Spain Development Berkeley Energia 1.0% NSR 14 years p37

SW2 Uranium Canada Early stage NexGen 2.0% NSR n/a p37

6 Ecora Resources PLC Annual Report and Accounts 2023

Visit www.ecora-resources.com/our-portfolio

Lower impact bulks

Asset Commodity Location Development stage

Operator/

developer Royalty basis Mine life See more

IOC Iron ore Canada Producing Rio Tinto 7.0% GRR (indirect) 2045 p38

Pilbara Iron ore Australia Early stage BHP 1.5% GRR N/A p39

Incoa Calcium carbonate

Dominican

Republic/US

Development Incoa ~1.23% GRR N/A p39

Ring of Fire Chromite Canada Early stage Wyloo Metals 1.0% NSR N/A p39

Other

Asset Commodity Location Development stage

Operator/

developer Royalty basis Mine life See more

Kestrel Steelmaking coal Australia Producing

EMR Capital and

Adaro

7.0–40.0% GRR 2026

(1)

p40

EVBC Gold Spain Producing Orvana Minerals 2.5–3.0% NSR 2026 p41

Dugbe 1 Gold Liberia Early stage Pasofino Gold 2-2.5% NSR 14 years

Mine locations

Key

Base metals

Speciality and battery metals

Uranium

Lower impact bulks

Other

Strategic report Governance report Financial statements

7Ecora Resources PLC Annual Report and Accounts 2023

An overview ofour markets

Royalty financing continued its role in bridging the capital gap to the mining

sector during 2023. Capital markets remained very challenging globally,

with equity markets generally depressed, few IPOs launched, and credit

conditions tightened particularly in the second half of the year.

Catastrophic and natural

catastrophic risk

Investment approval

Future demand

Commodity prices

Operator dependence

and concentration risk

Geopolitical events

Financing capability

Stakeholder support

Key to strategy

Commodity selection

Investment framework

 Portfoliodiversification

Capital allocation

OUR MARKETS

The cost of capital in the sector,

combined with the increased

requirement for capital after two years

ofgenerationally high levels of inflation,

resulted in an increased pressure on

smaller operators in the sector. The

collapse in equity ratings for less liquid

stocks, along with the significantly higher

cost of debt (if available) resulted in an

increased demand for alternative forms

of financing. This resulted in ~$2.2bn of

royalty and stream transactions during

the year. This dynamic looks set to

continue in 2024, as equity markets

generally remain tough, interest rates

arelikely to remain higher for longer.

Thelatter has resulted in reduced

valuations for development projects in

particular as future cash flows continue

to be discounted at a higher level.

Within the mining universe, base metal

and bulk commodities suffer more as

precious metal projects tend to have

lower capex costs and shorter

development time horizons. Furthermore,

the precious metals sector tends to

benefit from more favourable equity

ratings both at operator level and at

royalty company level. It was no surprise

therefore that of the $2.2bn of royalty

and stream transactions executed during

the year ~83% of these were in the

precious space.

Competition within the precious space

has remained high, most noticeably in

the sub $1bn market capitalisation range

where a number of junior royalty

companies compete for smaller ticket

size acquisitions. For this reason, the

Group chooses to focus on the non-

precious space where fewer companies

compete for the same transaction and

access to capital is making the deal

environment more favourable.

Within this subsector, pricing for certain

commodities has corrected noticeably

for certain commodities such as lithium,

nickel and cobalt. Other than for lithium,

the nickel market has been disrupted by

the recent and sudden supply increase

from Indonesia which has created a

market imbalance with greater supply

and pricing has fallen accordingly. This is

placing margin pressure on many

previously profitable nickel operations,

with some shutting (noticeably in

Australia) and others revisiting their

capital requirements. Declining

commodity environments like this can

lead to increased demand for royalty and

streaming financing which is less dilutive

than equity and less intrusive than debt,

which can enable smaller operators to

weather a downturn in the price cycle.

Conversely, for royalty and streaming

businesses, this represents a much

morefavourable price entry point

against a backdrop of favourable

investment conditions.

In terms of M&A activities, some of the

larger non-precious operators have

begun to diversify more into future

facing commodities. We have seen BHP

acquire Oz Minerals, Glencore and Teck

Resources agree a business combination

on coal assets and Rio Tinto

consolidating its stake over their

Mongolian copper project. This wave of

M&A activity by the majors could well

continue in the years ahead as they

leverage their size and access to capital.

An active M&A environment is also a

favourable backdrop for royalty and

streaming businesses as this creates

aneed for liquidity.

As is always the case for the natural

resource sector, demand is key. In this

respect a slow down in the Chinese

economy coupled with two serious

international conflicts creates a lot of

uncertainty for domestic policies such as

those around compulsory adopting of

electric vehicles and transition timelines

and commitments to net zero. This saw a

reduction in demand for electric vehicles

in certain markets in 2023 which

coincided with a moment of additional

supply for key battery commodities.

However, lower commodity prices are

likely to make certain battery chemistries

more economical with the potential of

lowering the cost of adoption – which in

its own right could trigger renewed

demand in future periods.

For the royalty and streaming

businesses, particularly those investing

outside of the precious space, the pull

back in pricing experienced over the past

twelve months arguably presents an

opportune investment point which can

result in significant value accruing should

markets return to supply demand

equilibrium in the near-term.

Key to principal risks

8 Ecora Resources PLC Annual Report and Accounts 2023

Cobalt

Rising supply and subdued demand negatively

impacted the price performance of cobalt in 2023.

Cobalt is predominantly produced as a by-product of

copper and nickel mining, and rapid growth in nickel

production from Indonesia led to a market awash

with readily available supply. A number of Indonesian

nickel laterite deposits - supported largely by Chinese

operators - have come online faster than many

observers had expected.

Despite the rise of Indonesian supply, the Democratic

Republic of Congo (‘DRC’) remains the primary source

of cobalt. Logistical bottlenecks seen in 2022 eased,

while the successful ramp-up of the Kisanfu copper

mine, and the lifting of export restrictions at Tenke

Fungurume led to greater availability of supply.

Growing demand from battery producers was limited

as a number of electric-vehicle manufacturers either

tempered their sale forecasts, or opted for cobalt-free

battery chemistries. Demand from the stainless steel

market remained robust despite slow global growth.

Cobalt hydroxide prices from the DRC negatively

weighed on the cobalt metal price throughout the

second half of the year, with alloy grade material

trading rangebound between $16-19/lb. The price of

cobalt metal (alloy grade) finished the year at $16/lb,

down 27% from the start of the year.

Ecora impact:

n Ecora would consider increasing its existing cobalt

exposure should there be an opportunity at an

attractive entry point.

Copper

A number of supply shocks over 2023 flipped

expectations of an upcoming surplus to a near term

shortage of supply.

Notable hits to supply towards the end of the year

included the cessation of mining activities at one of

the world’s largest mines, Cobre Panama, operated by

First Quantum. Guidance was slashed at a number of

other high profile producers, namely Anglo American,

Rio Tinto, Vale and Boliden amongst others.

These reductions did not materially move the price of

copper however, which traded between $3.55-3.99/lb

over the second half of the year as the market

remained wary of China’s structural challenges and

slowing global demand drivers. Further factors

curtailing copper demand were the

strength of the US

dollar, and rising global interest rates.

The backdrop for copper prices going forward

appears promising as global economies drive for

increased electrification at a time of shrinking supply

and lower grade profiles of existing mines. Bringing

additional supply online is further hampered by

increased permitting hurdles, rising costs and difficult

geological settings.

The copper price finished 2023 at $3.84/lb, up 1%

from the start of the year, and averaged $3.85/lb.

Ecora impact:

n The long term market outlook remains positive and

Ecora will look to continue adding further copper

royalties to the portfolio.

Link to strategy

Linktoprincipalrisks

Link to strategy

Linktoprincipalrisks

9Ecora Resources PLC Annual Report and Accounts 2023

Strategic report Governance report Financial statements

OUR MARKETS CONTINUED

Nickel

Growth of large capacity projects in Indonesia was

responsible for a 45% fall in the price of LME nickel

in2023.

Market tightness at the end of 2022 evaporated as

Chinese producers took advantage of high prices to

convert intermediate nickel products from Indonesia

into class 1 nickel suitable for trading on the LME.

Thisled to a rapid restocking of inventories during the

second half of 2023, increasing by approximately 75%.

The pace of electric vehicle adoption has slowed

compared to expectations which has led Western

manufacturers (who typically favour energy-dense,

nickel based battery chemistries) to push back sales

targets. Asian manufacturers have also tended to opt

for battery chemistries absent nickel and cobalt which

has dampened near-term demand for the metal.

Growth in stainless steel production and nickel use in

electric vehicle batteries both increased year on year,

but it was not enough to offset the rapid increase in

supply. Prices have subsequently weakened further

inearly 2024, causing higher cost producers to cease

operations. Prices will likely continue to trade into the

cost curve until such time that enough supply has

been curtailed, or demand catches up.

The nickel price finished 2023 at $7.43/lb,

andaveraged $9.75/lb.

Ecora impact:

n Continue to focus on nickel projects such as

WestMusgrave and Piauí which are low on the

costcurve.

n West Musgrave project will potentially see the

operator review phasing of capital expenditure.

n Bottom of cycle prices could represent an

interesting point of entry for new royalties.

Link to strategy

Linktoprincipalrisks

Steel-making coal

Steel-making coal, or metallurgical coal, was one of

the top performing commodities of 2023, closing

above $320/t, up 12% over the course of the year.

The record high prices of 2022 following Russia’s

invasion of Ukraine tempered somewhat,

butremained elevated throughout the year.

Pricesbottomed in Q2 and Q3 as optimism faded

from an expected rise in demand linked to China’s

reopening, but still remained well above the rolling

five year average. Robust demand from China and

India, as well as supply concerns from Australian

producers (linked to technical issues and turbulent

weather patterns), then led to a price rally towards

the end of 2023.

Indian imports have offset weakness from European

markets where the steel industry has struggled in

thelight of elevated energy costs, lower demand

anda shift towards less carbon intensive forms of

steelmaking. China’s steel output has remained

robust despite the continued domestic property

slowdown, with high blast-furnace utilisation as scrap

metal became harder to find.

Near-term conditions appear supportive of current

prices, but supply is forecast to pick up as technical

issues are resolved and weather disruptions in

Australia subside. The steel-making coal price

averaged $291/t throughout 2023.

Ecora impact:

n The current price environment for steelmaking

coalis driving material portfolio contribution

fromthe Kestrel royalty.

n There are no plans to invest additional capital into

steelmaking coal.

Link to strategy

Linktoprincipalrisks

10 Ecora Resources PLC Annual Report and Accounts 2023

Other

Iron ore shrugged off concerns of a faltering Chinese

economy and continued weakness in the property

market to rise 18% during 2023.

Low margins at Chinese steel mills ensured iron ore

required in blast furnaces was preferred to the

difficult-to-source scrap metal used in electric-arc

furnaces. Blast furnace utilisation throughout the

year was approximately 80%, near 2020 peak levels.

62% iron ore averaged $114/t during 2023, and

finished the year at $132/t.

Vanadium is a key material in steel-making,

specifically used to increase strength and durability.

Ithas a rising end-market use in vanadium redox

batteries, which is a growing battery type for

stationary storage. The price of vanadium peaked at

$10.80/lb in February, before falling to $6.53/lb at the

end of the year. The average vanadium price over the

period was $8.34/lb.

Ecora impact:

n Continue to look at opportunities in commodities

such as rare earths, graphite, lithium, zinc, tin and

high purity manganese that would round out the

commodity basket.

Uranium

Uranium continues to benefit from improving global

sentiment towards nuclear energy and security of

power supply.

Uranium prices went from strength to strength

during2023 as governments backed nuclear energy

as a source of low-carbon and reliable power.

Utilitieswere focused on security of uranium

supplyas question marks remained over the future

accessibility of Russian material, as well as production

shortfalls in Kazakhstan and a coup in Niger.

Supplyisnotoriously difficult to bring on line,

andwith historically low investments in greenfield

and brownfield deposits since the Fukushima

disasterin 2011, utilities looked to shore up their

inventories throughout the year.

Uranium is usually traded in the form of long term

contracts; however, the scramble for supply has

required market participants to be more active in

thespot market – pushing spot prices above $100/lb

in early 2024. The average price for spot material in

2023 was $62.50/lb, 25% higher than the average

price in 2022.

Ecora impact:

n Elevated prices should, over time, translate into

increased revenue from the Four Mile royalty.

n Higher prices could accelerate development of

previously idle deposits.

Link to strategy

Linktoprincipalrisks

Link to strategy

Linktoprincipalrisks

11Ecora Resources PLC Annual Report and Accounts 2023

Strategic report Governance report Financial statements

2023 was a year of mixed fortunes for the markets in which

we operate. Having enjoyed relatively buoyant conditions

in the wake of the pandemic, the economic outlook has

beenaffectedbythefightagainstinflationandthe

resultant higher interest rates. At the same time China’s

economy has been less robust than we have seen in recent

years which has dampened demand for some key raw

materials,andcontinuedgeopoliticaltensionsandconflicts

give cause for concern.

Having benefitted from record prices in our commodity mix in

2022, we saw some easing during 2023. This has led to lower

prices for some commodities such as cobalt, while steelmaking

coal has fallen even though it continues to trade at historically

high levels. In turn, this has led to lower earnings at a more

sustainable level than in 2022.

We remain committed to the transition we have undertaken in

our portfolio towards those commodities which are critical for

decarbonisation and are very excited at the quality and future

potential that our current portfolio offers. We are seeing a

slower rate of the growth in demand for some areas such as

electric vehicles but the pace is still extremely strong and the

medium- and long-term direction of travel is clearly set as the

imperative of tackling climate change intensifies.

We will continue to build the portfolio with strong value-accretive

transactions and are hopeful that the current economic and

market pressures experienced by the mining sector will offer

useven better opportunities to deploy capital.

I am writing to you for the final time as Chairman of Ecora

Resources and it is perhaps worth reflecting that back in 2015,

the Company was really a play on a single royalty, over the

Kestrel steel making coal mine, that had around ten years of

income contribution left. The two major strategic challenges

toaddress were the overdependence on one asset and the

need to diversify the commodity base whilst orientating

towards future facing commodities.

“The Company is in a

strong position and has

an exciting future ahead”

Patrick Meier

Chairman

CHAIRMAN’S STATEMENT

Under the management of Marc Bishop Lafleche, the team

hascompleted several transactions that are expected to

replace the Kestrel income and developed the royalty sector

leading copper exposure. The portfolio now offers material

income growth over the coming years.

To put this into context, in 2015 our royalty income was $13.6m,

73% of our NAV was in coal, net assets totalled $240m and we

had a $30m borrowing facility. Compare this to 2023, with

royalty income of $61.9m, 85% of our NAV now in future facing

commodities, net assets totaling $482m and a borrowing

capacity of $225m. Whilst this transformation has not been

reflected in the share price, I have every confidence that this

value will be realised in the coming years as the development

projects hit production and start to deliver income for

theCompany.

Beyond the asset portfolio, there has also been considerable

change within the Company over the last few years. The Board

has completely transitioned, and we have built a team of highly

experienced, capable individuals. We have strengthened the

wider team in key functions within the business such as legal,

finance and investor relations, reflecting the increased maturity

of the Company. I am also pleased to say that we have

developed a Governance framework that is fit for our business,

and despite not being a premium listed company, have upheld

the corporate governance standards of such a company. Finally,

we responded in 2020 to the increased focus on sustainability

by establishing a Sustainability Committee that has driven

improvements in our processes and disclosures in this area.

Board and governance

Following a thorough recruitment process, we were delighted to

announce the appointment of Andrew Webb as non-executive

director and Chair designate in January. Andrew has a wealth of

experience as an advisor to the mining sector from his role as a

Managing Director of Rothschild & Sons. He is already proving

that he will be a valuable addition to the Board. I wish him all

the very best in the role and I am sure he will work well with

theBoard, Marc and the rest of the team to drive the

Companyforward.

12 Ecora Resources PLC Annual Report and Accounts 2023

Chair Designate

In January 2024 the Board appointed Andrew Webb

as an independent Non-Executive Director and Chair

designate. Andrew will succeed Patrick Meier as

Chair at the Annual General Meeting in May 2024.

“As Chair Designate, I would like to say how excited I

am to be joining the Board of Ecora Resources. In my

career at Rothschild as an adviser to the mining

sector, I have followed the Company for many years.

The management team has successfully created a

diversified royalty company with a strong

foundation for growth over the coming years. As the

world continues the energy transition, there will

need to be a substantial increase in the quantity of

base metals andother future facing commodities

that are being mined, and this will create further

opportunities for Ecora to build on its sector

leading, non-precious

metals royalty portfolio.

Finally, I would like to thank

Patrick Meier for his

leadership over the past

few years and say how

much I am looking forward

to working with the team

tocontinue to deliver long

term shareholder value.”

(1) Free cash flow is calculated as net cash generated from operating

activities, plus proceeds from the disposal of non-core assets

andrepayments received under commodity related financing

arrangements, less finance costs and lease payments.

Stakeholder engagement

During the year we continued to engage with our key

stakeholders and more information can be found on page 47 in

our Section 172 Statement. In terms of shareholders, we have

run proactive engagement programmes with both institutional

and retail investors in the UK, Europe, Australia and North

America. We have further expanded the sell side research

coverage in the UK, and this will continue to be an area of focus

in 2024. We have continued to build closer relationships with

our operators and communities and were pleased to co-invest

with Vale in our first community initiative at Voisey’s Bay. On

behalf of the Board, I would like to thank all our stakeholders

foryour continued support.

Thanks

Finally, I would like to sign off by thanking the Ecora team for all

of its support over the past nine years, and its ongoing hard

work and dedication. The Company has changed beyond

recognition since I first joined – as a team, we have overcome

hurdles and achieved our key strategic objectives. I am

confident that the foundations are now in place and the

Company has an exciting future ahead.

Patrick Meier

Chairman

26 March 2024

The Board continues to execute its role in both challenging and

supporting the management team in pursuit of the Company’s

strategy. An integral part of the Board’s focus is to ensure we

operate with integrity and to the highest ethical standards; our

commitment to sustainability forms an important part of this.

The Board is constantly seeking to improve its effectiveness and

during 2023 completed an independent Board effectiveness

evaluation. More detail on the process can befound on pages

87 to 90, but to summarisetheBoard was found to function

well, with some areas for improvement highlighted which we will

address. Moreinformation on the operation and activities of

the Board can be found on pages 83 to 93.

Capital allocation

The Group moved to paying fixed dividends in US dollars in

2023 with a quarterly dividend of 2.125c per share, resulting

inan annual dividend of 8.5c per share.

The Board has reviewed the company’s approach to capital

allocation and has approved an updated framework which

aimsto maintain balance sheet strength, provide an attractive

dividend yield relative to the wider royalty sector, and retain the

flexibility to allocate capital to enhance the Company’s royalty

portfolio via accretive royalty acquisitions. The approach will

also align dividend payout to free cash flow which is expected

togrow as near-term development royalties come online.

Ecora’s updated capital allocation framework has four pillars:

n Acquire high-quality royalties to further diversify and grow

our portfolio.

n Focus on post-transaction balance sheet deleveraging.

n Distribute semi-annual cash dividends based on a range

of25-35% of free cash flow

(1)

n Consider share buybacks in the context of market price and

net asset value

Based on research analyst consensus commodity price

forecasts and operator production volume guidance from

Ecora’s operating partners, the mid-point of the new dividend

payout ratio would see total FY 2024 dividend of approximately

4.0c per share.

The updated dividend arrangements will take effect for the 2024

financial year, starting with the H1 2024 dividend which will be

declared in September 2024 and will be payable in January 2025.

The Board has decided that at the current market valuation a

share buyback represents a compelling investment opportunity

and has therefore approved a $10m share buyback programme

to commence immediately. This majority of this will be funded

from the proceeds of the partial sale of our stake in Labrador

Iron Ore Royalty Corporation in Q4 2023.

13Ecora Resources PLC Annual Report and Accounts 2023

Strategic report Governance report Financial statements

Attractive

growth profile

Our portfolio of royalties in future

facing commodities has the

potential to grow from generating

$27m of portfolio contribution in

2023 to generating over $100m

ofannual portfolio contribution

inthe medium term.

Portfolio contribution ($m)

Future facing contribution

Other

Compelling

commodity mix

We provide investors with access

to a commodity mix that contains

minerals and metals such as

copper, cobalt and nickel that will

be needed in increased quantity

ifthesupply is to meet expected

demand growth driven bythe

energytransition.

High quality

partners

We invest the majority of capital

into low cost mines primarily

located in OECD jurisdictions

thatare operated by companies

including Vale, Capstone Copper,

BHP and Rio Tinto.

Operators

* Based on consensus forecasts of covering sell side analysts

Copper

Cobalt

Nickel

Vanadium

Uranium

INVESTMENT CASE

Positioned to deliver

sustainable income

growth

We offer investors exposure to a basket ofcommodities

that are integral to the energytransition.

120

100

23 24 25 Medium

term

Read more on p26

14 Ecora Resources PLC Annual Report and Accounts 2023

Balance sheet

flexibility

We refinanced our debt facility in

early 2024, increasing the potential

borrowing capacity to $225m.

Furthermore, we have announced

a capital allocation framework

thatappropriately balances

deleveraging, growth and

shareholder returns.

Strong

sustainability

framework

All potential investments are

screened against our extensive

sustainability criteria before

wecommit to the transaction.

Weconduct ongoing monitoring

ofall of our portfolio investments

to make sure the operations

continue to meet our ESG

standards. Where operators

don’tmake public disclosure

ofESG datathen we engage

withthem and encourage them

toadopt bestpractice.

Proven track record

The current management team has

worked together since 2014 and

consistently proven its ability to

deliver high quality transactions

and grow the Company.

Over $400m invested in growth

focused future facing commodity

assets over past four years.

$225m

Size of Revolving Credit

Facility ($150m) and

Accordion ($75m)

$75m

Net debt at end of 2023

>$400m

deployed over past

fouryears

Read more on p42 Read more on p50 Read more on p22

12.3

Sustainalytics score

15Ecora Resources PLC Annual Report and Accounts 2023

Strategic report Governance report Financial statements

CHIEF EXECUTIVE OFFICER’S STATEMENT

Challenging global macroeconomic conditions persisted

throughout 2023. Contractionary monetary policies appear

tobesuccessfullycontaininginflationarypressures,

however fears of a hard economic landing persist.

As is always the case for the natural resource sector, demand

iskey. In this respect a slowdown in the Chinese economy

coupled with two serious international conflicts created a lot

ofuncertainty for domestic policies such as those around

adoption of electric vehicles and transition timelines and

commitments to net zero. This saw a reduction in demand

forelectric vehicles in certain markets which coincided with

increased supply of key battery commodities such as nickel.

However, lower commodity prices are likely to make certain

battery chemistries more economical with the potential of

lowering the cost of adoption – which in its own right could

trigger renewed demand in future periods.

These challenges were exacerbated by a noticeable stagnation

in the UK’s small-cap equity markets. This sector experienced

widespread redemptions across small-cap equity funds,

coupled with a notable shift of capital away from the UK.

The cumulative impact of these top-down factors have made

for a difficult year, particularly for UK listed small cap equities

and contributed to a 33% decline in our share price.

We look forward with confidence and in 2024 we anticipate

year-on-year production volume growth from the key assets

underlying our royalty portfolio, and in the medium term

onwards, our royalty portfolio is aligned to strong multi-decade

structural demand growth trends driven by the energy

transition. The investment in Ecora shares by the Ecora

Executive team, and along with several Board members

throughout 2023 and into 2024 demonstrates our belief in

Ecora’s solid foundation and promising future.

Growth opportunity

The mining sector at large has been facing the same challenging

market conditions that have impacted the Ecora share price.

The availability of capital from equity markets is primarily

limited to the largest producers. Furthermore, equity valuations

are compressed. In these conditions, however, royalty funding

is a highly attractive source of funding. Should these conditions

persist, we anticipate a favourable window to deploy capital

andfurther diversify and grow our royalty portfolio.

In 2023, Ecora made two development stage investments.

Wewere delighted to add a royalty over the Vizcachitas project,

one of the largest undeveloped copper projects that is not in

the hands of one of the large mining companies. As such, it was

a rare opportunity and adding it to our portfolio extends our

royalty sector leading copper growth pipeline out into the

nextdecade.

We were also pleased to make a further $7.5m investment into

Brazilian Nickel’s Piauí project. The proceeds will primarily be

used to finance detailed engineering studies and flow sheet

optimisation that will further de-risk the project prior to the

start of construction. Once built, the operation is expected to

be amongst the lowest cost global producers of nickel and

generate strong cash flows throughout the commodity

pricecycle.

During the year, we also reviewed and progressed a number of

opportunities across a variety of commodities and jurisdictions,

some of which we ultimately decided not to pursue. Asimportant

as the investments we make are the ones which we do not. Our

due diligence process is rigorous and looking back with hindsight

at these opportunities, the decisions taken were the correct

ones and have enabled us to preserve capital which can be

deployed in 2024. Our disciplined approach to investments

hasserved us well, and we will continue this diligent approach

to deliver on our strategy.

“We look out to 2024

with a great deal

ofoptimism”

Marc Bishop Lafleche

Chief Executive Officer

16 Ecora Resources PLC Annual Report and Accounts 2023

Capital allocation

In light of current market conditions driving strong

mining sector demand for royalty financing, I believe it is

the right time to rebalance our capital allocation policy

towards growth while currently maintaining an attractive

dividend yield in the context of the wider royalty sector.

By adopting this framework, we are prioritising

accelerated diversification and scale, both crucial

prerequisites for a royalty company to achieve a

premium equity rating. In Q4 2023, we sold

approximately 60% of our stake in Labrador Iron Ore

Royalty Corporation (LIORC) realising C$18.9m, a total

pre-tax return on investment of c. 110%. these funds will

primarily fund the buyback programme we announced

today and the $7.5m we invested into Piauí in December

2023 With Ecora shares trading at approximately at 0.5x

estimated net asset value (based on research analyst

consensus estimates), increased exposure to our

high-quality royalty portfolio is a highly attractive

investment which will drive earnings and NAV per

shareaccretion.

The completion of our revolving credit facility refinancing

in January 2024 maintains our strong financial position,

enabling us to further grow the company through

acquisitions of attractive royalties. In particular, we were

pleased to upsize the acquisition accordion feature to

$75m, in addition to the $150m headline availability.

Updated capital allocation framework

Pillars Philosophy

Growth

Acquire high quality royalties

tofurther diversify and grow

theportfolio

Deleveraging

Focus on post-transaction balance

sheet deleveraging

Cash dividends

Distribute semi-annual cash

dividends based on range of 25-35%

of free cash flow

Strategic share

buybacks

Consider strategic share buybacks

incontext of market price and NAV

Results

Portfolio contribution of $63.6m was, as expected, lower than

the prior year (2022: $143.2m) primarily as a result of lower

production out of the Group’s private royalty area at Kestrel.

Adjusted earnings per share was $11.82c (2022: 37.55c).

Net debt increased to $75m (2022: $36m) as payments of $37m

were made to South32 as deferred consideration for the royalty

acquisition made in July 2022 and the Group made $27.5m of

royalty acquisitions.

Outlook

Looking ahead, we have a great deal of optimism. Production

volumes from Kestrel, Voisey’s Bay and Mantos Blancos are all

expected to be higher than in 2023 which, at year-to-date

commodity price levels, could result in year-on-year portfolio

contribution growth in 2024.

The ramp-up of production from the underground mine at

Voisey’s Bay is expected to commence in the second half of 2024

and should lead to year-on-year growth in the number of cobalt

deliveries going forward, as it reaches steady state production.

Whilst there has already been plenty of turbulence in the nickel

markets in early 2024, both West Musgrave and Piauí sit at the

lower end of the cost curve, were they in production, would be

expected to generate robust cashflows even at current nickel

price levels. BHP has stated that construction of West Musgrave

is 21 per cent complete and that it is reviewing the phasing of

capital expenditure around the project. Brazilian Nickel

continues to progress construction financing workstreams

tofund the full-scale production plant at Piauí and we expect

more news on this during the course of 2024.

In our copper portfolio, Capstone Copper plans to release

anupdated Feasibility Study on Santo Domingo by mid-year.

Commentary from Capstone suggests there are material

efficiency gains and volume upside from the integrated

development plan compared to the initial Feasibility Study

completed in 2018.

The core portfolio is well positioned to deliver income growth

inthe year ahead. Our new capital allocation policy and upsized

debt facility position us at the forefront of the favourable

market conditions to deploy capital and further diversify and

grow the portfolio.

Finally, I would like to extend our deepest gratitude to our

outgoing Chairman, Patrick Meier, for his leadership and

commitment to building a world class royalty company

throughout his tenure. During the time Patrick has been Chair,

Ecora has transformed, and has emerged in a stronger and

more resilient position than ever before.

Marc Bishop Lafleche

Chief Executive Officer

26 March 2024

17Ecora Resources PLC Annual Report and Accounts 2023

Strategic report Governance report Financial statements

Applying a proven

business model

Our business model is proven and offers low risk exposure

toanincreasingly important basket of commodities.

Investing in royalties

What is a royalty?

A form of financing. In its simplest form

the royalty company provides the mine

operator with an upfront payment and

inreturn receives a percentage of

revenue generated from production

atthe mine. A stream is similar but

instead of percentage of revenue,

theroyalty company has the right

tobuya percentage of production

atanagreed, discounted price.

Primary and secondary

Primary royalties are a direct investment

in the mine and require the royalty

company tonegotiate the royalty

agreement with the mine operator.

Asecondary royalty is an existing royalty

that the royalty company acquires

fromthe holder of the royalty rights.

Royalty

Ecora

Resources