Ero Copper Reports First Quarter 2025 Operating and Financial Results
TSX: ERO NYSE: ERO
May 5, 2025
Ero Copper Reports First Quarter 2025 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 months ended March 31, 2025. Management will host a conference call tomorrow, Tuesday, May 6, 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 first quarter copper production was 12,424 tonnes, reflecting the continued commissioning and ramp-up of the Tucumã Operation.
- The Tucumã Operation produced 5,067 tonnes of copper in concentrate, with more than half of production occurring in March following the completion of planned maintenance in January and February.
- The Caraíba Operations produced 7,357 tonnes of copper in concentrate at an average C1 cash cost(*) of $2.22 per pound.
- Gold production during the quarter was 6,638 ounces at an average C1 cash cost(*) and All-in Sustaining Cost ("AISC")(*) of $1,100 and $2,228 per ounce, respectively.
- Quarterly financial performance reflected higher metals prices and increased production from the Tucumã Operation, which contributed to quarter-on-quarter improvements in net income and adjusted EBITDA(*)
- Net income attributable to the owners of the Company of $80.2 million ($0.77 per share on a diluted basis).
- Adjusted net income attributable to the owners of the Company(*) of $35.8 million ($0.35 per share on a diluted basis).
- Adjusted EBITDA(*) of $63.2 million.
(*) 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 three months ended March 31, 2025 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
1 Ero Copper Corp
- In March 2025, the Company entered into an agreement with RGLD Gold AG, a wholly-owned subsidiary of Royal Gold Inc., that effectively extends the gold delivery threshold under the June 2021 Precious Metals Purchase Agreement (the "Xavantina Gold Stream") from 93,000 to 160,000 ounces before the stream percentage decreases from 25% to 10% of gold produced over the remaining life of mine. In exchange, the Company received $50 million in upfront cash, bringing total proceeds under the streaming agreements to $160 million. For more information, please see the Company's press release dated March 31, 2025.
- At quarter-end, available liquidity was $115.6 million, including $80.6 million in cash and cash equivalents and $35.0 million of undrawn availability under the Company's senior secured revolving credit facility ("Senior Credit Facility").
- The Company is reaffirming its 2025 production, operating cost and capital expenditure guidance.
- The Tucumã Operation remains on track to achieve commercial production in H1 2025, following the successful completion of repairs to and commissioning of the third tailings filter in April 2025.
- At the Caraíba Operations, the Company achieved targeted mining rates at the Pilar Mine in March 2025 and completed mobilization of a second underground development contractor during the quarter. These milestones are expected to support sequential growth in production volumes through the rest of the year.
- At the Xavantina Operations, ongoing investments in mine modernization and mechanization are anticipated to support sequential increases in mined and processed volumes through the remainder of the year. Gold grades are also expected to improve, supporting higher production levels and lower unit costs.
Makko DeFilippo, President and Chief Executive Officer, commented: "We remain laser- focused on the execution of our 2025 strategy and are encouraged by the positive momentum across our portfolio, evidenced by strong late-quarter performance, particularly at Tucumã.
"At Caraíba, mining rates at the Pilar Mine are now tracking to plan, supported by the successful mobilization of a second development contractor during the quarter - an important step toward improving operational flexibility for the balance of the year. At Xavantina, our capital investments in growth and asset integrity, which we are advancing through our partnership with Royal Gold, are showing early signs of success. In parallel, we continue to advance the step-change growth opportunity we see at Furnas, where drilling is progressing well with eight rigs currently operating on site.
"With a portfolio of high-margin, high-growth assets and exposure to a commodity essential for the future, our fundamentals are strong. We are focused on making 2025 a record year of copper production at Ero, investing in innovation and operational flexibility to improve margins, and advancing long-term value creation at Furnas."
2 Ero Copper Corp
FIRST QUARTER REVIEW The Caraíba Operations
- Copper production totaled 7,357 tonnes, reflecting lower planned mined and processed copper grades during the quarter. This resulted in an average C1 cash cost(*) of $2.22 per pound.
- The Company completed the mobilization of a second underground development contractor and achieved targeted mining rates at the Pilar Mine in March 2025, which are expected to be maintained through the rest of the year.
The Tucumã Operation
- Commissioning and ramp-up of the Tucumã Operation progressed during Q1 2025, with a 32% quarter-on-quarter increase in ore tonnes processed. More than half of the quarter's total throughput and production was achieved in March, following the completion of maintenance activities aimed at addressing bottlenecks identified in Q4 2024.
- The plant processed 294,314 tonnes during the quarter. Copper head grades and metallurgical recovery rates averaged 2.18% and 89.4%, respectively, resulting in production of 5,067 tonnes of copper in concentrate, after accounting for a build in work-in-progress inventory.
- In April 2025, the Company successfully completed repairs to and commissioning of the third tailings filter, with commercial production on track to be achieved in H1 2025.
- C1 cash costs for the Tucumã Operation will be reported following the achievement of commercial production.
The Xavantina Operations
- Quarterly gold production totaled 6,638 ounces, reflecting lower mined and processed grades despite an increase of 27.2% in tonnes mined and processed. As a result, C1 cash costs(*) and AISC(*) averaged $1,100 and $2,228 per ounce, respectively.
- While decreased production levels were anticipated, grades encountered within planned operational levels were slightly lower than expected. Additional ground support was also required in several newly developed higher-grade levels of the Santo Antônio vein, delaying mining activities within these areas and further impacting quarterly production.
(*) 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 three months ended March 31, 2025 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
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OPERATING HIGHLIGHTS
| 2025 - Q1 2024 - Q4 2024 - Q1 | ||||
|---|---|---|---|---|
| Copper (Caraíba Operations) | ||||
| Ore Mined (tonnes) | 696,239 | 713,980 | 788,332 | |
| Ore Processed (tonnes) | 692,901 | 719,942 | 853,371 | |
| Grade (% Cu) | 1.18 1.30 1.08 | |||
| Recovery (%) | 90.2 | 91.8 | 88.1 | |
| Cu Production (tonnes) 7,357 8,566 8,091 | ||||
| Cu Production (000 lbs) 16,219 18,883 17,838 | ||||
| Cu Sold in Concentrate (tonnes) 6,949 8,420 9,461 | ||||
| Cu Sold in Concentrate (000 lbs) 15,318 18,563 20,859 | ||||
| Cu C1 cash cost(1)(2) $ 2.22 $ 1.85 $ 2.30 | ||||
| Copper (Tucumã Operation) | ||||
| Ore Mined (tonnes) | 328,291 | 1,065,108 | — | |
| Ore Processed (tonnes) | 294,314 | 223,013 | — | |
| Grade (% Cu) | 2.18 | 2.17 | — | |
| Recovery (%) | 89.4 | 89.1 — | ||
| Cu Production (tonnes) | 5,067 | 4,317 | — | |
| Cu Production (000 lbs) | 11,171 | 9,516 | — | |
| Cu Sold in Concentrate (tonnes) | 5,168 | 3,750 | — | |
| Cu Sold in Concentrate (000 lbs) | 11,393 | 8,268 | — | |
| Gold (Xavantina Operations) | ||||
| Ore Mined (tonnes) | 33,228 | 26,119 | 37,834 | |
| Ore Processed (tonnes) 33,228 26,120 37,834 | ||||
| Grade (g / tonne) 6.87 11.18 16.38 | ||||
| Recovery (%) | 90.8 | 92.8 | 91.5 | |
| Au Production (oz) 6,638 8,936 18,234 | ||||
| Au Sold (oz) | 5,834 | 11,106 | 16,853 | |
| Au C1 cash cost(1) $ 1,100 $ 744 $ 395 | ||||
| Au AISC(1) $ 2,228 $ 1,691 $ 797 |
(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 three months ended March 31, 2025 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 $2.36 in Q1 2025 (Q1 2024 - $2.28).
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FINANCIAL HIGHLIGHTS
($ in millions, except per share amounts)
| 2025 - Q1 | 2024 - Q4 | 2024 - Q1 | ||
|---|---|---|---|---|
| Revenues | $ 125.1 | $ 122.5 | $ 105.8 | |
| Gross profit | 55.5 | 52.4 | 31.2 | |
| EBITDA(1) | 117.9 | (31.4) | 17.8 | |
| Adjusted EBITDA(1) | 63.2 | 59.1 | 43.3 | |
| Cash flow from operations | 65.4 | 60.8 | 17.2 | |
| Net income (loss) | 80.6 | (48.9) | (6.8) | |
| Net income (loss) attributable to owners of the Company | 80.2 | (48.9) | (7.1) | |
| Per share (basic) | 0.77 | (0.47) | (0.07) | |
| Per share (diluted) | 0.77 | (0.47) | (0.07) | |
| Adjusted net income attributable to owners of the Company(1) | 35.8 | 17.4 | 16.8 | |
| Per share (basic) | 0.35 | 0.17 | 0.16 | |
| Per share (diluted) | 0.35 | 0.17 | 0.16 | |
| Cash, cash equivalents, and short-term investments | 80.6 | 50.4 | 51.7 | |
| Working capital (deficit)(1) | 10.2 | (69.9) | (28.6) | |
| Net debt(1) | 561.8 | 551.8 | 415.1 |
(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 three months ended March 31, 2025 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 increase sequentially each quarter, with full-year production projected to range between 75,000 and 85,000 tonnes. At the Tucumã Operation, production is anticipated to increase sequentially throughout the year, with higher mill throughput volumes expected to offset a gradual decline in processed copper grades. At the Caraíba Operations, the Company achieved targeted mining rates at the Pilar Mine in March 2025 and completed the mobilization of a second underground development contractor during the quarter. As a result, higher mined and processed tonnage is expected to be sustained for the remainder of the year.
At the Xavantina Operations, the Company is also reaffirming production guidance of 50,000 to 60,000 ounces with higher processed tonnage and improved gold grades projected to support increased gold production and lower unit operating costs through the balance of the year.
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 expenditure guidance remains unchanged at a range of $230 to $270 million, excluding capitalized ramp-up costs prior to the declaration of commercial production at the Tucumã Operation.
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 production at the Tucumã Operation.
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CONFERENCE CALL DETAILS
The Company will hold a conference call on Tuesday, May 6, 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: Tuesday, May 6, 2025 Time: 11:30 am Eastern time (8:30 am Pacific time)
Canada/USA Toll Free: 1-833-752-3380 International: +1-647-846-2821 Dial in: Please dial in 5-10 minutes prior to the start of the call or pre-register using this link to bypass the live operator queue.
(https://dpregister.com/sreg/10197761/feb2f3e007)
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Webcast:
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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 three months ended March 31, 2025 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: 2025 - Q1 2024 - Q4 2024 - Q1 | |||
|---|---|---|---|
| Cost of production $ 35,719 $ 33,685 $ 42,227 | |||
| Add (less): | |||
| Transportation costs & other | 1,322 1,149 1,252 | ||
| Treatment, refining, and other | 2,410 2,934 5,170 | ||
| By-product credits | (4,699) (5,163) (2,440) | ||
| Incentive payments | (1,289) 1,127 (1,199) | ||
| Net change in inventory | 2,659 927 (3,893) | ||
| Foreign exchange translation and other | (147) 168 (7) | ||
| C1 cash costs(1) | 35,975 | 34,827 | 41,110 |
| (Gain) loss on foreign exchange hedges | 2,216 | 4,166 | (276) |
| C1 cash costs including foreign exchange hedges | $ 38,191 $ 38,993 $ 40,834 |
| Mining $ 25,796 $ 24,906 $ 25,256 | |||
|---|---|---|---|
| Processing 6,352 6,580 7,177 | |||
| Indirect 6,116 5,570 5,947 | |||
| Production costs 38,264 37,056 38,380 | |||
| By-product credits | (4,699) (5,163) (2,440) | ||
| Treatment, refining and other | 2,410 2,934 5,170 | ||
| C1 cash costs(1) | 35,975 | 34,827 | 41,110 |
| (Gain) loss on foreign exchange hedges | 2,216 | 4,166 | (276) |
| C1 cash costs including foreign exchange hedges | $ 38,191 | $ 38,993 | $ 40,834 |
(1) Copper C1 cash costs for 2025 and 2024 do not include Tucumã Operation's results, as commercial production has not been achieved as of March 31, 2025.
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| 2024 - Q4 | 2024 - Q3 | 2023 - Q4 | ||
| Costs per pound | ||||
| Total copper produced (lbs, 000) | 16,219 18,883 17,838 | |||
| Mining $ 1.59 $ 1.32 $ 1.42 | ||||
| Processing $ 0.39 $ 0.35 $ 0.40 | ||||
| Indirect $ 0.38 $ 0.29 $ 0.33 | ||||
| By-product credits $ (0.29) $ (0.27) $ (0.14) | ||||
| Treatment, refining and other $ 0.15 $ 0.16 $ 0.29 | ||||
| Copper C1 cash costs(1) | $ 2.22 $ 1.85 $ 2.30 | |||
| (Gain) loss on foreign exchange hedges | $ 0.14 $ 0.22 $ (0.02) | |||
| Copper C1 cash costs including foreign exchange hedges | $ 2.36 $ 2.07 $ 2.28 |
(1)Copper C1 cash costs for 2025 and 2024 do not include Tucumã Operation's results, as commercial production has not been achieved as of March 31, 2025.
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: 2025 - Q1 2024 - Q4 2024 - Q1 | |
| Cost of production $ 6,225 $ 9,000 $ 7,255 | |
| Add (less): | |
| Incentive payments (269) (434) (443) | |
| Net change in inventory 1,339 (1,914) 264 | |
| By-product credits (111) (189) (189) | |
| Smelting and refining 35 62 90 | |
| Foreign exchange translation and other 82 125 232 | |
| C1 cash costs $ 7,301 $ 6,650 $ 7,209 | |
| Site general and administrative 1,077 1,576 1,353 | |
| Accretion of mine closure and rehabilitation provision 141 78 92 | |
| Sustaining capital expenditure 3,909 4,597 3,254 | |
| Sustaining lease payments 2,021 1,681 2,122 | |
| Royalties and production taxes 338 526 510 | |
| AISC | $ 14,787 $ 15,108 $ 14,540 |
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| 2025 - Q1 | 2024 - Q4 | 2024 - Q1 | |
| Costs | |||
| Mining $ 3,760 $ 3,325 $ 3,820 | |||
| Processing 2,206 2,162 2,259 | |||
| Indirect 1,411 1,290 1,229 | |||
| Production costs 7,377 6,777 7,308 | |||
| Smelting and refining costs 35 62 90 | |||
| By-product credits (111) (189) (189) | |||
| C1 cash costs $ 7,301 $ 6,650 $ 7,209 | |||
| Site general and administrative 1,077 1,576 1,353 | |||
| Accretion of mine closure and rehabilitation provision 141 78 92 | |||
| Sustaining capital expenditure 3,909 4,597 3,254 | |||
| Sustaining leases 2,021 1,681 2,122 | |||
| Royalties and production taxes 338 526 510 | |||
| AISC $ 14,787 $ 15,108 $ 14,540 | |||
| Costs per ounce | |||
| Total gold produced (ounces) 6,638 8,936 18,234 | |||
| Mining $ 566 $ 372 $ 209 | |||
| Processing $ 332 $ 242 $ 124 | |||
| Indirect $ 213 $ 144 $ 67 | |||
| Smelting and refining $ 5 $ 7 $ 5 | |||
| By-product credits $ (16) $ (21) $ (10) | |||
| Gold C1 cash cost $ 1,100 $ 744 $ 395 | |||
| Gold AISC | $ 2,228 $ 1,691 $ 797 |
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