Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF) CEO Marc Bishop Lafleche talked with Proactive's Stephen Gunnion about the company's latest acquisition of a copper stream from Moxico Resources’ Mimbula copper mine in Zambia. This $50 million transaction aligns with Ecora's strategy of focusing on royalties and streams over producing mines, contributing to immediate earnings and cash flow growth.
Lafleche emphasised that the deal "cements copper at the core of our portfolio," with the stream structured to front-load entitlements for the first seven to eight years of the mine's life. This approach ensures maximum contributions to Ecora’s earnings profile, delivering both short- and medium-term growth.
The Mimbula mine, located in the mineral-rich Zambian copper belt, offers high margins and low costs, contributing strong cash flows through varying commodity price cycles. The mine’s expansion is expected to quadruple copper production from 14,000 tonnes in 2024 to 56,000 tonnes by 2026.
The transaction was funded through a mix of cash on hand and an upsized revolving credit facility, providing Ecora with flexibility for future acquisitions. Lafleche noted that this acquisition not only strengthens Ecora’s copper exposure but also supports a material deleveraging profile over the next 12 to 24 months.
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