Ecora Royalties PLC

Hello everybody, my name is Geoff Callow, Head of Investor Relations at Ikora Royalties. I'd like to welcome you today to our half-year 2026 results call. I'm joined by our Chief Executive, Mark Bishop-LeFleche, and our Chief Financial Officer, Kevin Flynn. They'll take you through a short presentation and there'll be plenty of time for questions at the end. I'll just draw your attention to slide two, where there's a disclaimer, and then with that I'll hand over to Mark, who'll take you through the presentation.

Thank you for joining us today. It was a strong first half to 2026 with the Critical Minerals portfolio continuing to build on the momentum established during 2025. During the period, total portfolio contribution increased 75% to just over $31 million, certainly benefiting from both volumes growth as well as a strong commodity price environment. The 75% growth in portfolio contribution translated to a 509% increase in adjusted earnings, certainly a part of the scalability of the royalty model, and that benefit is certainly highlighted in these results. The period also represents continued delivery in a number of areas. First, the Critical Minerals portfolio continues to demonstrate its cash generation potential. In particular, the base metals portfolio contribution increased just under 160% on the first half 2025 and was very much the key driver of top-line revenue growth. The second key point to raise is the reduction in net debt, now down to 75 million as of 30 June from 125 million this time last year. Strong cash generation is expected to continue to drive debt reduction in the second half of the year and beyond, with the potential for an additional benefit from commodity price tailwinds should the price of copper and other key commodity exposures remain at or above current levels. The third area of delivery is in the area of the contribution and make up therein of our key sources of revenue, whereby we have increasingly transitioned our revenue from short dated assets to very much assets with mine lives measured in decades. And fourth, the performance in this period provides a partial indication of the increase in free cash flow conversion that's expected to occur in the future from the critical minerals portfolio and streams as the Kestrel royalty generates proportionally less revenue and time. And Kevin will pick up on this point later in the presentation. Last but certainly not least, The portfolio is now positioned for a number of near and medium-term potential milestones and de-risking events, which individually and in aggregate are expected to underpin this portfolio's organic revenue and free cash flow growth over the next five years and beyond. So with that, I'll hand it over to Kevin to take us through the financials.

Thanks Mark and thanks to everyone for joining the call. Turning to our financial highlights, another very strong period of portfolio contribution growth as Mark mentioned. We saw a 75% increase in total contribution from 17.9 million to 31.3 million in the period. base metals have once again driven this growth with strong operational performance across key assets combining with a very favorable commodity price backdrop and we'll look at the drivers of some of this growth on the next slide Earnings grew at a much higher pace than contribution in the period and this is really the point I want to focus on. We have been saying for some time now that as Kestrel reduces, the efficiency of our portfolio becomes much more noticeable. And the reason for this is that Kestrel has a very high tax rate associated with it, which has impacted on our earnings in the past. The rest of our portfolio and group structure is much more efficient. So as we can see here, our earnings grew by 75%, but our adjusted earnings grew by five times. So this half year is the first time we're really seeing this trend for what the future complexion of our business is going to be starting to play out. This is also positively impacting on free cash flow conversion, which has enabled meaningful deleveraging in the period. And with our dividend formula now well established, we've declared a dividend for the first half of the year of 1.9 cent, which is more than three times that of the comparable period in 2025, and actually almost the same as what we paid out for 2025 as a whole. Turning to slide six and looking at our portfolio, I'm going to focus primarily on the top three assets as these account for the majority of our income and the growth catalysts that we expect to come through in the second half of the year. Our base metals portfolio grew by 159% compared to the same period last year, very much building on the momentum which started to come through in the second half of last year. Importantly, that's not just driven by price, but strong underlying ramp-up in operational performance. And this is particularly evident at Voices Bay, where we saw a near doubling of volumes as the operation nears its steady-state capacity. Cobalt pricing was also strong in the period, with the average realized price of $28.50 per pound, comfortably in excess of the $16.50 we had in the same period last year. Our guidance at Voices for full year volumes remains unchanged, and based on consensus pricing in the second half, this should result in meaningful growth year on year. We are also pleased to see Valet-based metals exploring the potential to increase mill capacity by around 35% in and around 2030. So we hope to see plenty more to come from Voices Bay over the coming years. Our copper portfolio was also a particular highlight in the period, performing strongly. Although, as expected, volumes at Mantis Blenkos were lower in the period, the copper prices remained at record levels, leading to a 26% increase in revenue from the royalty to 4.8 million, which, again, similar to the second half of last year, is almost a 20% cash yield on an annualized basis. Capstone have indicated that a PFS in relation to a Phase 2 expansion will be published in due course, and this could see volumes increase significantly from 2030 onwards. So similar to Voices Bay, plenty more to come from this royalty, along with a very favourable copper price environment. The increase in Mimbula is partially explained by the fact that the first half of 2026 reflects a full six months of income compared to three months in 2025. The stream also benefited from strong copper prices in the period, which were about 37% higher compared to H1-25. The underlying operation continues to ramp up, and the commissioning of the SX capacity should drive near-term growth in volumes here. Just by way of reminder, we have structured this stream to provide some protections for a ramp-up operation, such that we receive a higher portion of metal for the first 15,000 tons of production. Just to pick out a few others, income from 4 Mile is not quite like for like as the first quarter of 2025 saw the operator continue to stockpile rather than sell, whereas this year we've seen a normalized sales profile. It's also worth noting that we have some exposure to gold prices with EVBC, very much benefiting from very strong gold prices and this comes through with an 80% increase in contribution in the period. And finally, Kestrel. We saw around 100,000 tons of sales in the second quarter, which generated 1.3 million of income. This represented less than 5% of our overall contribution. We expect to see most of the 2026 volume in the third quarter, which is currently benefiting from a much higher coking coal price environment. At Kestrel, our overall guidance remains unchanged in the period as well. Overall, a very good first six months from the portfolio, with much more to come in the second half. Turning to the next slide and how this contribution converts to earnings. I mentioned this in the first slide, but the conversion to earnings post-Kestrel was really demonstrated in the first half of this year. This is particularly evident in the tax line. In 2025, we had 1.9 million of tax on 31.3 million of contribution, which led to 3.2 million of adjusted earnings. This represented an effective tax rate on pre-tax adjusted earnings of 37%. The equivalent number for the first half of 2026, where Kestrel contributed only 5%, is less than 5% itself. And this is due to the tax losses that we've inherited at Voices Bay, which should ensure no cash tax payable for the foreseeable future. and tax losses in our wider group are getting reactivated as income from Mantos and Mamboula start to ramp up also. The other virtue of the royalty model is scalability, and this is evident as overheads remain broadly flat despite FX movements, whilst contribution increased by 75%. And we hope that this will get even more meaningful as we continue to add to our income portfolio. So all of this combined to realize adjusted earnings per share of 7.8 cent in the first half. This was five times that of H1 last year and actually close to the 8.8 cent for the entirety of 2025. My next slide is a summary of our balance sheet. And I make this point every time, but I think it's always worth highlighting. 87% of our royalties are held on our balance sheet at the lower of fair value or amortized cost. And so they're never revalued upwards. As I mentioned earlier, there's potential for expansion at both Voices Bay and Mantos Blancos. So we won't see this incremental value reflected on our balance sheet. And so the balance sheet value is not reflective of commercial value. It's also worth highlighting as well that 85% of our royalty assets as of the end of June were in base metals, royalties and streams. And turning to my final slide, this slide highlights the continued deleveraging in the period with closing net debt of 75 million down from a peak of 125 million only 15 months previously. As we can see in the bottom right, based on consensus pricing, we'd expect this to continue reducing in the second half towards 50 million by the end of the year. Our leverage number at the end of June was 1.35 times, which is very comfortable in the context of our permitted leverage of 3.5 times. Our headline facility is $180 million with a further $45 million accordion, bringing total borrowing capacity to $225 million, providing significant access to capital to fund further growth. So I just summarized the results for the first half. We saw significant portfolio contribution growth, which had a much more meaningful impact on earnings. We saw continued deleveraging, ending the period with a strong balance sheet. We're benefiting from good pricing momentum, and we expect several portfolio updates in the coming months to de-risk the next wave of our organic growth. And with that, I'll hand back to Mark.