RBC Capital Markets has reiterated its ‘outperform’ rating and 185p price target on Ecora Royalties PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF, FRA:HGR) after a site visit to the Voisey’s Bay cobalt and copper mine in Newfoundland and Labrador left the bank with materially greater…
nfidence in the asset’s operational delivery and growth potential. The note, from analysts Ben Davis, Laura Chan and Marina Calero, describes a step-change in execution at Voisey’s Bay, where the transition to underground mining is now largely complete with throughput running at nameplate capacity
The mine has also added 63 operating days at the Long Harbour processing facility following debottlenecking work, improving reliability and output consistency. Voisey’s Bay has grown rapidly in importance to Ecora’s investment case, with its contribution to group revenue rising from 10% in 2024 to 45% in 2026, while representing 30% of net asset value (NAV). RBC says structural improvements at the site give it greater confidence that guided cobalt deliveries of 500 to 560 tonnes this year are on track, with the bank’s own estimate sitting at 550 tonnes.
The medium-term growth opportunity centres on a planned 35% expansion of mill capacity to 3.8 million tonnes per annum (mtpa) from 2.8mtpa by 2030, with a pre-feasibility study underway and a final investment decision expected in 2028. RBC estimates the expansion could generate an additional $10 million of revenue per year for Ecora at long-term cobalt prices of $23.50 per pound, alongside a 7% uplift to NAV. The site visit also highlighted significant exploration optionality, with mineral reserves of 28.5 million tonnes supporting underground mining through at least 2039 and an 8.5-kilometre mineralised trend offering further upside near existing infrastructure, extending the bank’s current life-of-mine model to 2044.