A Question and Answer session with ECR Minerals PLC

The TMS Team catch up with ECR Minerals Chairman Nick Tulloch and discuss Maddens, Paleogold, Raglan, Blue Mountain, Creswick and what the market is missing…

 

NICK – For its near term production, scalability and exploration upside, Maddens is very much ECR’s key asset.  Work is already underway on the decline which we anticipate will be completed in August with production to start shortly thereafter.  Based on historic production, we believe that Maddens could be a very meaningful contributor to ECR.  The contingent consideration for Paleogold – aggregate revenues of A$5 million in year 1 and A$10 million in year 2 – provides some guide of what we expect could be possible. The first step is the development of the Maddens Underground Mine and we believe this will be the cornerstone of the revenue targets above.  Thereafter we expect to invest some of the production proceeds into the other mines on the wider Maddens exploration licence, specifically Brothers but thereafter Sisters and You-can-tell-us. The wider district opportunity should not be overlooked and results from a recent Lidar survey that we commissioned are expected to provide guidance and further insight into what we see a potentially a very large scale project.

 

Interviewer – The Paleogold acquisition introduced both debt and a significant cash payment due within six months. Should investors interpret this funding structure as a reflection of management’s confidence in the near-term cash-generating potential of Raglan and Maddens?

NICK – Absolutely. The Paleogold acquisition was always designed to bring revenue generating projects into ECR and, as explained with maddens above, be capable of doing that in the short to medium term.  The transaction structure was therefore deliberately constructed to make use of this revenue capability whilst at the same time relieving our shareholders of the burden of funding the acquisition through a new equity issue.

 

Interviewer – Since acquiring Raglan, the message has consistently been that ECR is now focused on production and cash generation. However, shareholders have seen very little operational data since commercial production commenced. Can you understand why some investors might view the lack of updates as concerning? Can shareholders expect a comprehensive production update soon, including tonnes processed, gold recovered, sales achieved and revenues generated to date?

NICK – We understand investors’ impatience on Raglan but it is important not to rush at the project and to plan a mining programme that gives us the best results, whilst complying with all regulations.  Simply arriving on site, trenching ground and processing material would most likely have been a lot of effort for little result so we have taken our time in structuring the project for medium term success. Although it was a turnkey project (meaning mining equipment was on site and a mining lease was in place), that does not necessarily mean that a day 1 start was possible. We took time to assess and service the mining fleet and plant, implement site procedures and analyse the mining locations.  There have been impediments, such as maintenance or weather interruptions, but nothing out of the ordinary for a mining project.  Importantly, our overall view of Raglan, after around three months of operation, is positive.  As expected, the value of the plant and on-site equipment exceed the purchase price.  Also as expected, initial findings on the property support our confidence in Raglan’s ability to deliver meaningful production and revenue to ECR. We can assure investors that production details will be announced but it is important to bear in mind that the nature of mining, and alluvial mining in particular, is that there will be natural variations in results from week to week.  Investors should expect further operational updates from Raglan as we reach key production milestones. Our objective is to provide meaningful production data that reflects sustained operating performance rather than isolated short-term results.

 

Interviewer – Can you provide a clear timeline for Raglan over the next 12 months?

• Current production status
• Number of gold sales completed to date
• Existing offtake arrangements
• Production targets
• Key milestones investors should be monitoring

NICK – As stated above, all of the work done to date at Raglan has endorsed our positive view of the project.  It is important to bear in mind that Raglan was never expected to be a company-maker.  In fact, it may well be our smallest project but it is our first mining project.  It is therefore an opportunity to develop our skills in preparation for what should be much larger, and longer lasting projects – Blue Mountain in particular. But Raglan is also far more than a training ground.  It may not necessarily have the scale or longevity of other ECR projects but it does have the ability to make a meaningful contribution to our P&L.  Our target is covering overheads and we continue to believe this is possible. As for timing and process, Raglan can keep us busy for several years and the offtake arrangements we announced in February remain in place.  As ECR grows and our field demands increase, we will continually assess where to place our resources but, for the time being, Raglan is our primary production operation. The immediate focus remains on optimising mining and processing operations. Investors should monitor future announcements regarding production rates, gold recoveries, gold sales and operational expansion activities at Raglan.

 

Interviewer – ECR has historically been viewed by some within the small-cap community as a company that continually moves on to the next exciting project before fully delivering on the previous one. Can you confidently say today that this is changing? In six to nine months’ time, do you believe shareholders will be able to clearly see cash generation from operations in black and white, helping to remove that perception once and for all?

NICK – ECR has a varied history of operations in different countries and targeting different resources.  However, our strategy today is firmly focused on Australia and gold.  There may be occasions where secondary resources, such as antimony in Bailieston and silver in Lolworth, merit examination but our primary target will be gold. As for existing projects, there are no plans for further acquisitions or additions to our portfolio.  We have set out our strategy as a gold producer and all of our near term focus will be directed to that.  In order of likely production, that means we are concentrating this year and next on Raglan, Maddens, Blue Mountain and Salt Bush. Our objective is not simply to produce gold, but to demonstrate sustainable production and cash generation. We believe shareholders should expect to see clear evidence of that transition during 2026.

 

Interviewer – We are now well into the year and the Blue Mountain mining licence is still outstanding. Given the time required following approval to mobilise and commence operations, is first production during 2026 still realistically achievable? What are the key milestones shareholders should expect between now and first gold production?

NICK -We have started the application process for a mining lease at Blue Mountain.  Needless to say, we are in the hands of the Queensland authorities on timing but there is some reason to be optimistic that the application can be concluded faster that typical mining lease applications – the scale of the project, the limited invasiveness of the mining plans, fewer environmental challenges to overcome and no native title requirements.  These are only our assessments of course and, for the time being, we will be responsive to any questions or additional information requested by the authorities. Most importantly, we aim to be ready to commence production once all permissions are in place.  The team and equipment (particularly the second mobile washplant) at nearby Raglan place us in a strong position in this regard.

 

Interviewer – Has there been any meaningful progress with the Creswick Joint Venture? What is the current status and what should investors realistically expect from that project?

NICK – The proposed Creswick JV is progressing and we have recently commenced the negotiation of the JV contracts.  We hope this will conclude shortly. Although it has taken longer than originally expected, it remains an important opportunity for ECR – enabling us to participate in future development of the project for no cost whilst focusing our staff and resources on projects that are nearer to production.

 

Interviewer – Are you confident ECR can fund its plans through the remainder of this year without returning to shareholders for additional equity funding? What are the key assumptions behind that confidence?

NICK – Our strategy is to transition from gold exploration to gold production.  As a consequence, we expect to be revenue generating in the current financial year.  The opportunities we are seeing at Raglan and Maddens, both of which are described above, underpin these plans. Furthermore there are no plans for further acquisitions or new projects although we will continue to invest in our current portfolio where we see a good risk/reward balance. In time, our objective is to make ECR self-sustaining where gold revenues cover both operating costs and future development. Pending that, we will structure the financing of the company and its operations in the most capital-effective manner. As referenced in the question above, the acquisition of Paleogold brought debt into ECR.  This is not a structure suitable for pure exploration but, as our production capabilities grow, the opportunity to expand funding beyond traditional equity raises will also grow.

 

Interviewer – Can you provide an indication of:

• Historical monthly corporate cash burn before Paleogold
• Current monthly cash burn including the enlarged group
• Expected monthly cash burn by Q4 2026 once projects are fully operational

NICK – We can’t disclose financial information outside of the RNS system or our annual report but, in the past two financial years, ECR’s monthly expenditure has averaged £81,000 per month.  This includes staff overheads, listing costs and project work.  We estimate this will increase for the remainder of this year by around 25% taking into account work at Raglan and Maddens, as well as the additions to the team from the Paleogold acquisition. Thereafter in Q4 2026 we are forecasting a further increase as we continue to expand Maddens.  However, we expect that this will be offset in time by gold production. We expect expenditure to increase as production activities expand, particularly at Raglan and Maddens, although our objective is for these investments to be increasingly offset by operating revenues.

 

Interviewer – Could you provide an update on some of ECR’s legacy interests and any royalty potential attached to them? Specifically:

• Sierra de las Minas (Argentina) – current status and royalty potential
• Fosterville South – current status and royalty potential
• Danglay (Philippines) – where did ECR ultimately end up and does any residual value remain?

NICK – The assets in Argentina and the Philippines are fully written down.  They remain owned by ECR but, with no activity on site and no reasonable likelihood of revenue, we have prudently assumed that they have no value to our company. Should anything change then we will reassess in the future. The Fosterville South royalties are also still in existence but there is potentially more visibility there following a recent change of ownership and, we believe, renewed activity on one of the project areas.  As we announced on 16 March 2026, Leviathan Metals Corp. entered into an agreement to sell its Timor Gold project in Victoria, Australia to Au Gold Corp. (TSX: AUGC).  As part of this sale, ECR consented to an assignment of its royalty interest in the Timor Gold project.  ECR is entitled to receive the following in respect of the Avoca and Timor projects:

1. A$1 per ounce of gold or gold equivalent defined within a measured, indicated or inferred mineral resource estimate within the licences, capped at A$1,000,000; and

2. A$1 per ounce of gold or gold equivalent produced from the licences, capped at A$1,000,000.

 ECR’s Avoca project royalty interest remains with Leviathan Metals Corp.

 

Interviewer – Does ECR Digital still exist as an active initiative? Have you spent any time recently exploring opportunities within the digital asset sector? Do you still maintain a relationship with Perry Hothi, who was brought in as a specialist adviser, and is there any ongoing strategic involvement?

NICK – ECR Digital remains dormant and there are currently no plans to reactivate the initiative. The Board’s focus is firmly on developing ECR as an Australian gold producer and allocating management time and capital accordingly.  Mr Hothi consulted briefly with ECR but is no longer involved and we have no expectation of retaining any consultants in this area for the foreseeable future.

 

Interviewer – You currently hold leadership and board positions across multiple companies. Are you finding it challenging balancing these commitments alongside running ECR during what is arguably its most important operational period? Do you believe this structure remains sustainable long term, or could there come a point where a transition in responsibilities becomes appropriate?

NICK – ECR and Mendell Helium together take up almost all of my time.  The other roles that I have do not come with big time commitments.  However, we recognise the importance of developing a multi-skilled team both to share the workload and also to complement each other.  The appointments of Mike Parker and Chris Gibbs to the board are a case in point and the Paleogold acquisition has introduced further Australian mining expertise to our team.  In small companies it is not unusual for senior staff members to have external roles – it enables companies like ECR to attract talent without incurring the full time cost.  We acknowledge this and take advantage of it, subject always to an expectation that the person is available for all time contracted with ECR. As ECR grows then this model will naturally evolve.  Our own commitments will grow such that more full time staff are required and our budget will be able to support this.

 

Interviewer – If we were conducting this interview again in 12 months’ time, what three achievements would you most like shareholders to be able to point to as evidence that ECR has successfully transformed from an explorer into a genuine gold producer?

NICK – Looking out over the next 12 months, and noting our objectives to be a gold producer, our three primary objectives are:

1. Commercial production at Raglan
2. Commercial production at Maddens
3. A clear timeline for ECR’s cashflows to be self-sustaining

 

Interviewer – What do you believe the market is currently missing about ECR?

NICK – We believe the market continues to value ECR primarily as an exploration company. Our focus today is on building a production base through Raglan, Blue Mountain and Maddens while retaining substantial exploration upside across the broader portfolio. As production and revenue become more visible, we believe investors will increasingly assess ECR on a different basis.

Interviewer – Nick , thank you for your time on these questions. I appreciate you are in a very busy period at the moment and it really does look an exciting time to be a shareholder.

 

ECR Minerals featureded in our 20 Mining Companies to follow in 2026