Ecora royalty partner Rainbow produces from Phalaborwa
Ecora pivots successfully from coal to critical minerals as debt declines and development assets reach pilot stage.
The most recent news (February 9, 2026) confirms that Ecora’s royalty partner, Rainbow Rare Earths, has successfully produced high-grade mixed rare earth hydroxide from its large-scale pilot plant at the Phalaborwa project in South Africa. The product achieved a grade of 55% Total Rare Earth Oxide (TREO), which is suitable for standard separation circuits. Ecora holds a 0.85% Gross Revenue Royalty (GRR) on this project. This follows a January 28, 2026, trading update where Ecora reported FY 2025 portfolio contributions of $57 million and a significant shift in revenue mix, where critical minerals contributions exceeded steelmaking coal for the first time in company history.
- Financial Impact: The Phalaborwa pilot plant success is technically significant but financially non-material in the immediate term. The project is in the feasibility/pilot stage with first production targeted for 2027. Immediate cash flow from this asset is zero.
- Strategic Pivot: The FY 2025 trading update is highly material. It confirms that the company’s dependency on the Kestrel coal royalty is finally diminishing. Base metals now drive the portfolio, up 150% year-on-year, primarily due to the Mimbula copper stream acquisition and the Voisey’s Bay cobalt ramp-up.
- Deleveraging: The company has reduced net debt from $124.6 million in mid-2025 to $85.5 million by year-end 2025. This was aided by the sale of the non-core Dugbe gold royalty for $16.5 million upfront. This improves the balance sheet flexibility for future acquisitions.
Ecora is a royalty and streaming company focused on "future-facing" commodities required for the energy transition. - Flagship Assets: - Voisey’s Bay (Cobalt Stream): 22.82% stream on cobalt. Ramping to 2,600 tonnes per annum. - Mantos Blancos (Copper Royalty): 1.525% NSR. Record performance in 2025. - Mimbula (Copper Stream): Acquired for $50M in 2025. Tiered entitlement (4.7% down to 1.0%). - Kestrel (Coal Royalty): Historically the largest producer; now declining in relative importance.