A firm financial footing Alongside its operational progress, ECR has continued to strengthen financially over the past two years. As of endMarch, the company held £871,756 in cash, fully funding its immediate work programmes. This follows a £950,000 fundraise completed in November 2024. But it is also reflective of the cost discipline instilled by ECR’s current leadership team. Since taking over, chairman Nick Tulloch and managing director Mike Whitlow have implemented a more focused operating model. This has included reducing ECR’s reliance on consultants, selling non-core assets, and closing the London office to focus efforts on the field. Directors have also demonstrated personal commitment. A board salary sacrifice scheme has seen £383,000 in unpaid salary either waived or converted into equity (correct as of end-March 2025), aligning interests fully with shareholders. Perhaps ECR’s most important asset is the A$75 million in accumulated tax losses it holds through its subsidiary ECR Australia. These can be used by the company to offset future profits at Blue Mountain – potentially saving up to A$18.75 million in tax if fully applied. But they could also be sold to a third party. The losses have already attracted interest from external buyers. And while one deal fell through in early 2025, ECR remains open to the further interest it is continuing to receive from thirdparties. The company has restructured its corporate setup to allow for flexibility, enabling either an internal use of the losses or a clean sale if the right price is offered. Whatever happens, the tax losses give ECR another lever to reduce dilution and enhance value. 9
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