Ero Copper Reports Fourth Quarter and Full Year 2024 Operating and Financial Results
TSX: ERO NYSE: ERO
March 6, 2025
Ero Copper Reports Fourth Quarter and Full Year 2024 Operating and Financial Results (all amounts in US dollars, unless otherwise noted)
Vancouver, British Columbia – Ero Copper Corp. (TSX: ERO, NYSE: ERO) (“Ero” or the “Company”) is pleased to announce its operating and financial results for the three and twelve months ended December 31, 2024. Management will host a conference call tomorrow, Friday, March 7, 2025, at 11:30 a.m. eastern time to discuss the results. Dial-in details for the call can be found near the end of this press release.
HIGHLIGHTS
- Consolidated fourth quarter copper production was a record 12,883 tonnes, bringing full-year copper production to 40,600 tonnes in concentrate.
- Copper C1 cash costs(*) for the quarter and year at the Caraíba Operations were $1.85 and $1.97, respectively, per pound of copper produced.
- Fourth quarter and full-year gold production were 8,936 ounces and 57,210 ounces, respectively.
- Gold C1 cash costs(*) for the quarter and year were $744 and $493, respectively, per ounce of gold produced. All-in Sustaining Costs ("AISC")(*) for the same periods were $1,691 and $1,006, respectively, per ounce.
- Strong financial results were driven by record copper production during the fourth quarter and improved metal prices and operating margins for the full year.
Cash flow from operations for the quarter and year were $60.8 million and ◦ $145.4 million, respectively.
- Fourth quarter and full-year adjusted EBITDA(*) were $59.1 million and $216.2 million, respectively.
- Net loss attributable to the owners of the Company was $48.9 million ($0.47 per share on a diluted basis) for the quarter and $68.5 million ($0.66 per share on a diluted basis) for the year.
- Adjusted net income attributable to the owners of the Company(*) for the quarter and year were $17.4 million ($0.17 per share on a diluted basis) and $80.4 million ($0.78 per share on a diluted basis), respectively.
(*) These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the year ended December 31, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
1 Ero Copper Corp
- Available liquidity at year-end was $90.4 million, including $50.4 million in cash and cash equivalents, $15.0 million of undrawn availability under the Company's senior secured revolving credit facility ("Credit Facility"), and $25.0 million of undrawn availability under the copper prepayment facility. In January 2025, the Company amended its Credit Facility to enhance financial flexibility and support its larger operational footprint. The amendment, which included an increase in aggregate commitments from $150 million to $200 million, added $50 million of liquidity subsequent to year-end. Other updates to the Credit Facility included:
- An extension of the maturity date from December 2026 to December 2028.
- Improved terms, including a 25-basis point reduction to the applicable margin on drawn funds at certain leverage ratios.
- The Company is reaffirming its 2025 production, operating cost and capital expenditure guidance.
“The strategic investments we made to grow our business in 2023 and 2024 have positioned us for a pivotal year ahead, with the Tucumã Operation set to drive transformational growth in both copper production and cash flow from operations," said Makko DeFilippo, President and Chief Executive Officer. "With important work completed during an extended maintenance shutdown at Tucumã over the past several weeks, we are seeing consistency in plant throughput and copper production and expect to see improved operational performance going forward, as reflected in our 2025 guidance.
"We anticipate a record year by every measure for 2025 as we work diligently to complete the ramp-up to commercial production at Tucumã and restore operational flexibility at Caraíba. With a strong foundation in place, our focus is on delivering safe production, driving innovation to improve margins, and creating long-term value for our stakeholders through the advancement of Furnas over the months ahead."
2 Ero Copper Corp
FOURTH QUARTER AND FULL YEAR 2024 REVIEW The Caraíba Operations
- Quarterly copper production totaled 8,566 tonnes, bringing full-year copper production to 35,444 tonnes in concentrate.
- C1 cash costs(*) and operating margins continued to benefit from improved concentrate treatment and refining charges secured in May 2024, as well as a more favorable USD to BRL exchange rate. As a result, the Caraíba Operations reported C1 cash costs(*) of $1.85 per pound of copper produced for the quarter and $1.97 per pound for the full year.
- During the quarter, the Company engaged an additional development contractor to support accelerated development rates and improved operational flexibility. Mobilization of the additional contractor is expected to be complete by the end of Q1 2025.
The Tucumã Operation
- Ramp-up of the processing operations continued to deliver important progress during the quarter as metallurgical recoveries and concentrate grades remained in line with design targets, while throughput volumes steadily increased month-over-month.
•
| Production for the quarter was | 4,317 | tonnes of copper in concentrate, with plant | |||
| throughput totaling | 223,013 | tonnes and metallurgical recovery rates averaging | 89.1%. |
Full-year production totaled 5,156 tonnes in concentrate.
- Mining operations continued to progress ahead of schedule, contributing to run-ofmine stockpiles available for processing in 2025.
- Scheduled mill downtime during the first quarter to improve consistency of operations and address bottlenecks within the tailings filtration circuit is well underway and expected to be completed by the end of March 2025. This downtime has been reflected in the Company's full-year guidance.
The Xavantina Operations
- Quarterly gold production totaled 8,936 ounces, reflecting lower mined and processed tonnage and grades compared to the prior quarter. Consequently, C1 cash costs(*) and AISC(*) increased quarter-on-quarter to $744 and $1,691, respectively, per ounce of gold produced.
•
| Full-year gold production of | 57,210 | ounces declined compared to 2023, primarily due | |||||||
| to lower planned mined and processed gold grades. As a result, C1 cash costs | and | ||||||||
| AISC | (*) | increased year-on-year to | $493 | and | $1,006 | respectively, per ounce. |
(*) These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the year ended December 31, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
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OPERATING HIGHLIGHTS
| 2024 - Q4 2024 - Q3 2023 - Q4 2024 2023 | |||||||
|---|---|---|---|---|---|---|---|
| Copper (Caraíba Operations) | |||||||
| Ore Mined (tonnes) | 713,980 | 874,937 | 886,271 | 3,274,410 | 3,341,121 | ||
| Ore Processed (tonnes) | 719,942 | 900,289 | 812,202 | 3,431,294 | 3,231,667 | ||
| Grade (% Cu) | 1.30 1.20 1.59 1.14 1.49 | ||||||
| Recovery (%) | 91.8 | 91.9 | 91.0 | 90.6 | 91.4 | ||
| Cu Production (tonnes) 8,566 9,920 11,760 35,444 43,857 | |||||||
| Cu Production (000 lbs) 18,883 21,871 25,926 78,140 96,688 | |||||||
| Cu Sold in Concentrate (tonnes) 8,420 9,970 11,429 36,557 42,595 | |||||||
| Cu Sold in Concentrate (000 lbs) 18,563 21,980 25,197 80,594 93,906 | |||||||
| Cu C1 cash cost(1)(2) $ 1.85 $ 1.63 $ 1.75 $ 1.97 $ 1.80 | |||||||
| Copper (Tucumã Operation) | |||||||
| Ore Mined (tonnes) | 1,065,108 | 867,315 | — | 1,932,423 | — | ||
| Ore Processed (tonnes) | 223,013 | 110,778 | — | 333,791 | — | ||
| Grade (% Cu) | 2.17 | 1.00 | — | 1.78 | — | ||
| Recovery (%) | 89.1 | 75.7 — 86.6 | — | ||||
| Cu Production (tonnes) | 4,317 | 839 | — | 5,156 | — | ||
| Cu Production (000 lbs) | 9,516 | 1,850 | — | 11,366 | — | ||
| Cu Sold in Concentrate (tonnes) | 3,750 | 357 | — | 4,107 | — | ||
| Cu Sold in Concentrate (000 lbs) | 8,268 | 787 | — | 9,055 | — | ||
| Gold (Xavantina Operations) | |||||||
| Ore Mined (tonnes) | 26,119 | 41,761 | 34,417 | 146,160 | 135,982 | ||
| Ore Processed (tonnes) 26,120 41,761 34,416 146,161 136,002 | |||||||
| Grade (g / tonne) 11.18 11.41 17.18 13.37 15.13 | |||||||
| Recovery (%) | 92.8 | 92.5 | 88.7 | 92.0 | 89.5 | ||
| Au Production (oz) 8,936 13,485 16,867 57,210 59,222 | |||||||
| Au Sold (oz) | 11,106 | 14,615 | 18,479 | 60,195 | 57,949 | ||
| Au C1 cash cost(1) $ 744 $ 539 $ 413 $ 493 $ 422 | |||||||
| Au AISC(1) $ 1,691 $ 1,034 $ 991 $ 1,006 $ 957 |
(1) EBITDA, adjusted EBITDA, adjusted net income (loss) attributable to owners of the Company, adjusted net income (loss) per share attributable to owners of the Company, net (cash) debt, working capital, copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, gold C1 cash cost and gold AISC are non-IFRS measures. These measures do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the year ended December 31, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
(2) Copper C1 cash cost including foreign exchange hedges was $2.07 in Q4 2024 (Q4 2023 - $1.59) and $2.05 in Fiscal 2024 (Fiscal 2024 - $1.68).
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FINANCIAL HIGHLIGHTS
($ in millions, except per share amounts)
| 2024 - Q4 | 2024 - Q3 | 2023 - Q4 | 2024 | 2023 | ||
| Revenues | $ 122.5 | $ 124.8 | $ 116.4 | $ 470.3 | $ 427.5 | |
| Gross profit | 52.4 | 53.7 | 41.9 | 180.6 | 156.8 | |
| EBITDA(1) | (31.4) | 74.5 | 73.7 | 24.8 | 208.7 | |
| Adjusted EBITDA(1) | 59.1 | 62.2 | 50.3 | 216.2 | 183.5 | |
| Cash flow from operations | 60.8 | 52.7 | 49.4 | 145.4 | 163.1 | |
| Net (loss) income | (48.9) | 41.4 | 37.1 | (67.8) | 94.3 | |
| Net (loss) income attributable to owners of the | (48.9) | 40.9 | 36.5 | (68.5) | 92.8 | |
| Per share (basic) | (0.47) | 0.40 | 0.37 | (0.66) | 0.99 | |
| Per share (diluted) | (0.47) | 0.39 | 0.37 | (0.66) | 0.98 | |
| Adjusted net income attributable to owners of the Company(1) | 17.4 | 27.6 | 20.7 | 80.4 | 82.8 | |
| Per share (basic) | 0.17 | 0.27 | 0.21 | 0.78 | 0.88 | |
| Per share (diluted) | 0.17 | 0.27 | 0.21 | 0.78 | 0.87 | |
| Cash, cash equivalents, and short-term | 50.4 | 20.2 | 111.7 | 50.4 | 111.7 | |
| Working (deficit) capital(1) | (69.9) | (60.9) | 25.7 | (69.9) | 25.7 | |
| Net debt(1) | 551.8 | 518.7 | 314.5 | 551.8 | 314.5 |
(1) EBITDA, adjusted EBITDA, adjusted net income (loss) attributable to owners of the Company, adjusted net income (loss) per share attributable to owners of the Company, net (cash) debt, working capital, copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, gold C1 cash cost and gold AISC are non-IFRS measures. These measures do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company’s discussion of Non-IFRS measures in its Management’s Discussion and Analysis for the year ended December 31, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
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2025 PRODUCTION AND COST GUIDANCE(*)
Consolidated copper production for 2025 is expected to range between 75,000 to 85,000 tonnes. The Company remains focused on steadily increasing plant throughput and achieving commercial production at the Tucumã Operation in H1 2025. As a result, copper production is expected to increase sequentially each quarter, with Tucumã expected to contribute significantly to the full-year consolidated copper production.
At the Xavantina Operations, annual gold production is expected to remain steady at 50,000 to 60,000, with mill throughput volumes projected to increase and mined and processed gold grades expected to return to long-term block model averages.
Copper C1 cash cost guidance on a consolidated basis is $1.55 to $1.80 per pound of copper produced. This is based on C1 cash cost guidance ranges of $2.15 to $2.35 per pound for the Caraíba Operations and $1.05 to $1.25 per pound at the Tucumã Operation.
At the Xavantina Operations, the C1 cash cost guidance range of $650 to $800 per ounce of gold produced reflects a planned decrease in mined and processed gold grades. The AISC guidance range for 2025 is $1,400 to $1,600 per ounce of gold produced.
Consolidated Copper Production (tonnes)
Caraíba Operations 37,500 - 42,500 Tucumã Operation 37,500 - 42,500 Total Copper 75,000 - 85,000
Consolidated Copper C1 Cash Cost(1) Guidance
Caraíba Operations $2.15 - $2.35 Tucumã Operation $1.05 - $1.25 Consolidated Copper Operations $1.55 - $1.80
The Xavantina Operations
Au Production (ounces) 50,000 - 60,000 Gold C1 Cash Cost(1) Guidance $650 - $800 Gold AISC(1) Guidance $1,400 - $1,600
Note: Guidance is based on estimates and assumptions including, but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical recovery performance. Please refer to the Company’s SEDAR+ and EDGAR filings, including the most recent Annual Information Form ("AIF"), for a detailed summary of risk factors.
(1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within the MD&A.
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2025 CAPITAL EXPENDITURE GUIDANCE(*)
Capital expenditures are expected to decrease to a range of $230 to $270 million, primarily due to significantly lower capital expenditures at the Tucumã Operation following the completion of construction in 2024.
Figures presented in the table below are in USD millions.
Caraíba Operations $165 - $180 Tucumã Operation(1) $30 - $40 Xavantina Operations $25 - $35 Furnas Copper-Gold Project and Other Exploration $10 - $15 Total $230 - $270
Note: Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company’s most recent Annual Information Form and Management of Risks and Uncertainties in the MD&A for complete risk factors.
(1) Excludes capitalized ramp-up costs prior to the declaration of commercial.
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CONFERENCE CALL DETAILS
The Company will hold a conference call on Friday, March 7, 2025 at 11:30 am Eastern time (8:30 am Pacific time) to discuss these results. A results presentation will be available for download via the webcast link and in the Presentations section of the Company's website on the day of the conference call.
Date: Friday, March 7, 2025 Time: 11:30 am Eastern time (8:30 am Pacific time)
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(https://dpregister.com/sreg/10196217/fe5a12f75d)
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Webcast:
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webcastid=mvwyHhWr)
Canada/USA: 1-855-669-9658, International: +1-412-317-0088 For country-specific dial-in numbers, click here.
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Replay Passcode: 2945658
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Reconciliation of Non-IFRS Measures
Financial results of the Company are presented in accordance with IFRS. The Company utilizes certain alternative performance (non-IFRS) measures to monitor its performance, including copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, gold C1 cash cost, gold AISC, EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share, net (cash) debt, working capital and available liquidity. These performance measures have no standardized meaning prescribed within generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar measures presented by other mining companies. These non-IFRS measures are intended to provide supplemental information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
For additional details please refer to the Company’s discussion of non-IFRS and other performance measures in its Management’s Discussion and Analysis for the year ended December 31, 2024 which is available on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov.
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Copper C1 cash cost and copper C1 cash cost including foreign exchange hedges
The following table provides a reconciliation of copper C1 cash cost to cost of production, its most directly comparable IFRS measure.
| Reconciliation: 2024 - Q4 2024 - Q3 2023 - Q4 2024 2023 | |||||
|---|---|---|---|---|---|
| Cost of production $ 33,685 $ 40,149 $ 39,790 $ 158,006 $ 153,187 | |||||
| Add (less): | |||||
| Transportation costs & other | 1,149 1,283 1,853 4,967 6,539 | ||||
| Treatment, refining, and other | 2,934 3,170 7,332 15,332 28,323 | ||||
| By-product credits | (5,163) (6,584) (3,394) (17,618) (12,930) | ||||
| Incentive payments | 1,127 (1,138) (1,693) (2,384) (5,668) | ||||
| Net change in inventory | 927 (1,220) 1,434 (4,654) 4,407 | ||||
| Foreign exchange translation and other | 168 3 20 185 (149) | ||||
| C1 cash costs(1) | 34,827 | 35,663 | 45,342 | 153,834 | 173,709 |
| (Gain) loss on foreign exchange hedges | 4,166 | 1,965 | (4,185) | 5,901 | (11,417) |
| C1 cash costs including foreign exchange hedges | $ 38,993 $ 37,628 $ 41,157 $ 159,735 $ 162,292 |
| Mining $ 24,906 $ 26,529 $ 26,646 $ 104,572 $ 102,908 | |||||
|---|---|---|---|---|---|
| Processing 6,580 7,069 8,177 28,753 30,736 | |||||
| Indirect 5,570 5,479 6,581 22,795 24,672 | |||||
| Production costs 37,056 39,077 41,404 156,120 158,316 | |||||
| By-product credits | (5,163) (6,584) (3,394) (17,618) (12,930) | ||||
| Treatment, refining and other | 2,934 3,170 7,332 15,332 28,323 | ||||
| C1 cash costs(1) | 34,827 | 35,663 | 45,342 | 153,834 | 173,709 |
| (Gain) loss on foreign exchange hedges | 4,166 | 1,965 | (4,185) | 5,901 | (11,417) |
| C1 cash costs including foreign exchange | $ 38,993 | $ 37,628 | $ 41,157 | $ 159,735 | $ 162,292 |
| h d |
(1) Copper C1 cash costs for 2024 do not include Tucumã Operation's results, as commercial production has not been achieved as of December 31, 2024.
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| 2024 - Q4 | 2024 - Q3 | 2023 - Q4 | 2024 | 2023 | ||
| Costs per pound | ||||||
| Total copper produced (lbs, 000) | 18,883 21,871 25,926 78,140 96,688 | |||||
| Mining $ 1.32 $ 1.22 $ 1.03 $ 1.34 | $ 1.06 | |||||
| Processing $ 0.35 $ 0.32 $ 0.32 $ 0.37 $ 0.32 | ||||||
| Indirect $ 0.29 $ 0.25 $ 0.25 $ 0.29 $ 0.26 | ||||||
| By-product credits $ (0.27) $ (0.30) $ (0.13) $ (0.23) $ (0.13) | ||||||
| Treatment, refining and other $ 0.16 $ 0.14 $ 0.28 $ 0.20 $ 0.29 | ||||||
| Copper C1 cash costs(1) | $ 1.85 $ 1.63 $ 1.75 $ 1.97 $ 1.80 | |||||
| (Gain) loss on foreign exchange hedges | $ 0.22 $ 0.09 $ (0.16) $ 0.08 $ (0.12) | |||||
| Copper C1 cash costs including foreign exchange hedges | $ 2.07 $ 1.72 $ 1.59 $ 2.05 $ 1.68 |
(1) Copper C1 cash costs for 2024 do not include Tucumã Operation's results, as commercial production has not been achieved as of December 31, 2024.
Gold C1 cash cost and gold AISC
The following table provides a reconciliation of gold C1 cash cost and gold AISC to cost of production, its most directly comparable IFRS measure.
| Reconciliation: 2024 - Q4 2024 - Q3 2023 - Q4 | 2024 2023 | |
| Cost of production $ 9,000 $ 6,220 $ 7,122 | $ 30,055 $ 25,209 | |
| Add (less): | ||
| Incentive payments (434) (378) (386) | (1,481) (1,424) | |
| Net change in inventory (1,914) 1,378 65 | (594) 862 | |
| By-product credits (189) (232) (248) | (869) (827) | |
| Smelting and refining 62 79 113 | 328 353 | |
| Foreign exchange translation and other 125 203 296 | 775 806 | |
| C1 cash costs $ 6,650 $ 7,270 $ 6,962 | $ 28,214 $ 24,979 | |
| Site general and administrative 1,576 1,321 1,492 | 5,600 5,366 | |
| Accretion of mine closure and rehabilitation 78 82 111 | 340 439 | |
| i i Sustaining capital expenditure 4,597 2,784 5,499 | 13,288 16,300 | |
| Sustaining lease payments 1,681 1,801 1,861 | 7,512 7,093 | |
| Royalties and production taxes 526 686 785 | 2,584 2,487 | |
| AISC | $ 15,108 $ 13,944 $ 16,710 | $ 57,538 $ 56,664 |
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| 2024 - Q4 | 2024 - Q3 | 2023 - Q4 | 2024 | 2023 | |
| Costs | |||||
| Mining $ 3,325 $ 3,852 $ 3,430 $ 14,702 $ 12,154 | |||||
| Processing 2,162 2,419 2,315 9,117 8,433 | |||||
| Indirect 1,290 1,152 1,352 4,936 4,866 | |||||
| Production costs 6,777 7,423 7,097 28,755 25,453 | |||||
| Smelting and refining costs 62 79 113 328 353 | |||||
| By-product credits (189) (232) (248) (869) (827) | |||||
| C1 cash costs $ 6,650 $ 7,270 $ 6,962 $ 28,214 $ 24,979 | |||||
| Site general and administrative 1,576 1,321 1,492 5,600 5,366 | |||||
| Accretion of mine closure and rehabilitation 78 82 111 340 439 | |||||
| i i Sustaining capital expenditure 4,597 2,784 5,499 13,288 16,300 | |||||
| Sustaining leases 1,681 1,801 1,861 7,512 7,093 | |||||
| Royalties and production taxes 526 686 785 2,584 2,487 | |||||
| AISC $ 15,108 $ 13,944 $ 16,710 $ 57,538 $ 56,664 | |||||
| Costs per ounce | |||||
| Total gold produced (ounces) 8,936 13,485 16,867 57,210 59,222 | |||||
| Mining $ 372 $ 286 $ 203 $ 257 $ 205 | |||||
| Processing $ 242 $ 179 $ 137 $ 159 $ 142 | |||||
| Indirect $ 144 $ 85 $ 80 $ 86 $ 82 | |||||
| Smelting and refining $ 7 $ 6 $ 7 $ 6 $ 6 | |||||
| By-product credits $ (21) $ (17) $ (14) $ (15) $ (13) | |||||
| Gold C1 cash cost $ 744 $ 539 $ 413 $ 493 $ 422 | |||||
| Gold AISC | $ 1,691 $ 1,034 $ 991 $ 1,006 $ 957 |
12 Ero Copper Corp