Ero Copper Reports Fourth Quarter and Full Year 2023 Operating and Financial Results
Ero Copper Reports Fourth Quarter and Full Year 2023 Operating and
Financial Results
(all amounts in US dollars, unless otherwise noted)
VANCOUVER, British Columbia, March 07, 2024 -- 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, 2023.
Management will host a conference call tomorrow, Friday, March 8, 2024, 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
• Fourth quarter copper production was 11,760 tonnes, bringing full-year copper production to 43,857 tonnes
• Copper C1 cash costs(*) for the quarter and year were $1.75 and $1.80, respectively. Including the benefit of realized
gains on designated foreign exchange hedges, fourth quarter and full-year copper C1 cash costs(*) were $1.59 and
$1.68, respectively
• Fourth quarter gold production was 16,867 ounces, contributing to record full-year gold production of 59,222 ounces
• Gold C1 cash costs (*) for the quarter and year were $413 and $422, respectively. All-in Sustaining Costs ("AISC")(*) for
the same periods were $991 and $957, respectively
• Fourth quarter and full-year financial results reflect the continued execution of the Company's growth initiatives,
including completion of the NX60 initiative, which resulted in record full-year operating margins at the Xavantina
Operations
◦ Net income attributable to the owners of the Company for the quarter and year were $36.5 million and $92.8
million, respectively, or $0.37 and $0.98, respectively, per share on a diluted basis
◦ Adjusted net income attributable to the owners of the Company (*) for the quarter and year were $20.7 million and
$82.8 million, respectively, or $0.21 and $0.87, respectively, per share on a diluted basis
◦ Fourth quarter and full-year adjusted EBITDA(*) were $50.3 million and $183.5 million, 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, 2023 and the Reconciliation of Non-IFRS Measures
section at the end of this press release.
• The Company achieved significant milestones across its organic growth projects
◦ Construction of the Tucumã Project progressed significantly, reaching over 90% physical completion as of
February 2024. With production of copper concentrate on schedule to commence in H2 2024, the Company's
transition from construction to commissioning is underway. The total direct project capital estimate remains
unchanged at approximately $310 million
◦ The Caraíba mill expansion, which is expected to increase mill throughput capacity from 3.2 to 4.2 million
tonnes per annum, was completed in December 2023 with design capacity achieved by year-end
◦ Following the completion of surface infrastructure, the main shaft sinking phase for the Pilar Mine's new external
shaft commenced as planned in December 2023. The new external shaft component of the Pilar 3.0 initiative is
fully contracted, and projected capital expenditures are within budget
• During the quarter, amid an uncertain macroeconomic climate, the Company's management team prudently elected to
fortify its balance sheet with a bought deal equity financing. Net proceeds from the transaction of $104.3 million
contributed to available liquidity at year-end of $261.7 million, including cash and cash equivalents of $111.7 million and
$150.0 million of undrawn availability under the Company's senior secured revolving credit facility
• The Company is reaffirming its 2024 production, operating cost, and capital expenditure guidance
"2023 was a cornerstone year in advancing our growth strategy," stated David Strang, Chief Executive Officer. "Our
investments over the past few years position us well for the future at both the Xavantina Operations, where we successfully
completed the NX60 initiative, and at the Caraíba Operations with the completion of our mill expansion and the excellent
progress made on the new external shaft for the Pilar Mine.”
"However, the most significant transformation in our consolidated production profile and cash flows is projected to begin in the
second half of this year when production is scheduled to commence at the Tucumã Project. With physical completion at over
90% and capital expenditures on the project starting to wind down, we are approaching an exciting inflection point when we
expect to see these investments begin to yield strong shareholder returns."
FOURTH QUARTER AND FULL YEAR 2023 REVIEW
• Mining & Milling Operations
◦ The Caraíba Operations processed 3.2 million tonnes of ore grading 1.49% copper, producing 43,857 tonnes of
copper in concentrate for the year after metallurgical recoveries of 91.4%
◾ Higher mill throughput volumes and processed copper grades during the fourth quarter resulted in copper
production of 11,760 tonnes in concentrate, representing an increase of 9.2% compared to the third
quarter
◾ Full-year mill throughput volumes increased 12.8%, partially offsetting the impact of a planned decrease
in mined and processed copper grades compared to 2022
◦ The Xavantina Operations processed 136,002 tonnes of ore grading 15.13 grams per tonne, producing a record
59,222 ounces of gold in 2023 after metallurgical recoveries of 89.5%
◾ Fourth quarter processed gold grades continued to exceed expectations, averaging 17.18 grams per
tonne and resulting in production of 16,867 ounces for the quarter
◾ The successful completion of the NX60 initiative contributed to increases in processed gold grades and
gold production of 98.8% and 38.8%, respectively, compared to 2022
• Organic Growth Projects
◦ The Company continued to make significant construction progress at its Tucumã Project, achieving over 90%
physical completion as of February 2024. With production of copper concentrate on schedule to commence in
H2 2024, the Company's transition from construction to commissioning is underway. Key milestones include:
◾ Site fully energized in January 2024 following commissioning of the main substation and completion of the
16-kilometer power line tie-in with the national grid
◾ Pre-stripping activities continue to track ahead of schedule with approximately 25,000 tonnes of sulphide
ore stockpiled for process plant commissioning as at the end of February 2024
◾ Mechanical completion and sub-component commissioning (lubrication, hydraulic, electrical,
instrumentation and automation systems) continues to progress on schedule
◾ Dry commissioning of the crushing circuit, encompassing the primary and secondary crushers as well as
screening and conveyance systems, was completed in February 2024, approximately one month ahead
of schedule
◾ The total direct project capital estimate remains approximately $310 million
◾ To date, the Tucumã Project has recorded no lost-time injuries with over three million hours of work
completed since 2022
◦ At the Caraíba Operations, the Company made important advancements on its Pilar 3.0 initiative during the
quarter. This initiative aims to transform the Pilar Mine into a two-mine system capable of sustaining annual ore
production levels of approximately 3.0 million tonnes
◾ The Caraíba mill expansion, which is expected to increase mill throughput capacity from 3.2 to 4.2 million
tonnes per annum, was successfully completed in December 2023 with design capacity achieved by year
-end
◾ Following the completion of the head-frame, winders and supporting surface infrastructure, the main shaft
sinking phase for the Pilar Mine's new external shaft commenced as planned in December 2023. The new
external shaft component of the Pilar 3.0 initiative is fully contracted, and projected capital expenditures
are within budget
◦ The Xavantina Operations' NX60 initiative was successfully completed in 2023. As a result, the Company
achieved record gold production for the year and expects to sustain annual gold production levels of 55,000 to
60,000 ounces moving forward
OPERATING AND FINANCIAL HIGHLIGHTS
2023 - Q4 2023 - Q3 2022 - Q4 2023 2022
Operating Information
Copper (Caraíba Operations)
Ore Processed (tonnes) 812,202 806,096 745,850 3,231,667 2,864,230
Grade (% Cu) 1.59 1.46 1.84 1.49 1.76
Cu Production (tonnes) 11,760 10,766 12,664 43,857 46,371
Cu Production (000 lbs) 25,926 23,734 27,918 96,688 102,230
Cu Sold in Concentrate (tonnes) 11,429 10,090 13,301 42,595 46,816
Cu Sold in Concentrate (000 lbs) 25,197 22,244 29,323 93,906 103,211
Cu C1 cash cost (1)(2) $ 1.75 $ 1.92 $ 1.59 $ 1.80 $ 1.55
Gold (Xavantina Operations)
Ore Processed (tonnes) 34,416 31,446 39,715 136,002 189,743
Grade (g / tonne) 17.18 18.72 10.17 15.13 7.61
Au Production (oz) 16,867 17,579 11,786 59,222 42,669
Au C1 cash cost (1) $ 413 $ 371 $ 445 $ 422 $ 560
Au AISC(1) $ 991 $ 844 $ 1,096 $ 957 $ 1,124
Financial Highlights ($ in millions, except per share amounts)
Revenues $ 116.4 $ 105.2 $ 116.7 $ 427.5 $ 426.4
Gross profit 41.9 35.5 52.7 156.8 187.2
EBITDA(1) 73.7 28.3 53.6 208.7 208.3
Adjusted EBITDA(1) 50.3 42.9 53.2 183.5 198.3
Cash flow from operations 49.4 41.9 34.0 163.1 143.4
Net income 37.1 2.8 22.5 94.3 103.1
Net income attributable to owners of the
Company 36.5 2.5 22.2 92.8 101.8
Per share (basic) 0.37 0.03 0.24 0.99 1.12
Per share (diluted) 0.37 0.03 0.24 0.98 1.10
Adjusted net income attributable to owners
of the Company(1) 20.7 17.3 22.2 82.8 83.5
Per share (basic) 0.21 0.19 0.24 0.88 0.92
Per share (diluted) 0.21 0.18 0.24 0.87 0.91
Cash, cash equivalents, and short-term
investments 111.7 87.6 317.4 111.7 317.4
Working capital(1) 25.7 32.8 263.3 25.7 263.3
Net (cash) debt(1) 314.5 331.8 100.7 314.5 100.7
(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, 2023 and the Reconciliation of Non-
IFRS Measures section at the end of this press release.
(2) Copper C1 cash cost including foreign exchange hedges (per lb) in Q4 2023 and Fiscal 2023 were $1.59 and $1.68, respectively, compared to $1.59 in Q4 2022 and $1.67
in Fiscal 2022.
2024 PRODUCTION AND COST GUIDANCE(*)
The Company's 2024 production guidance reflects the ongoing execution of its organic growth strategy, including the
successful completion of the Xavantina Operations' NX60 initiative as well as the anticipated completion of the Tucumã Project,
which remains on track to commence production in H2 2024. As a result, the Company expects to deliver consolidated copper
production of 59,000 to 72,000 tonnes in concentrate and gold production of 55,000 to 60,000 ounces.
The Company's 2024 copper C1 cash cost guidance on a consolidated basis is $1.50 to $1.75. This range incorporates
several key updates relative to previous 2024 C1 cash cost projections, including a revised copper C1 cash cost calculation
methodology, as detailed in the Company's press release dated February 21, 2024.
At the Xavantina Operations, the gold C1 cash cost guidance range of $550 to $650 reflects improved fixed cost efficiencies
driven by higher expected gold production, partially offsetting the impact of planned decreases to mined and processed gold
grades. The gold AISC guidance range for 2024 is $1,050 to $1,150.
The Company's updated cost guidance for 2024 assumes a foreign exchange rate of 5.00 BRL per USD, a gold price of $1,900
per ounce and a silver price of $23.00 per ounce.
Consolidated Copper Production (tonnes)
Caraíba Operations 42,000 - 47,000
Tucumã Operations 17,000 - 25,000
Total 59,000 - 72,000
Consolidated Copper C1 Cash Costs(1) Guidance
Caraíba Operations $1.80 - $2.00
Tucumã Operations $0.90 - $1.10
Total $1.50 - $1.75
The Xavantina Operations
Au Production (ounces) 55,000 - 60,000
Gold C1 Cash Cost(1) Guidance $550 - $650
Gold AISC(1) Guidance $1,050 - $1,150
* 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) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within the MD&A.
2024 CAPITAL EXPENDITURE GUIDANCE(*)
2024 capital expenditures are expected to decrease to a range of $299 to $349 million due to the anticipated completion of the
Tucumã Project, which is on track to commence production in the H2 2024. As a result, capital spend is expected to be
weighted towards H1 2024.
The Company's capital expenditure guidance includes an estimated $30 to $40 million allocated to consolidated exploration
programs. This allocation includes approximately $20 million designated for drilling activities at the Caraíba Operations,
including expenditures related to the Curaçá Valley nickel exploration program. Additionally, the Company has budgeted
approximately $6 million for the first phase of work at the Furnas Project.
Capital expenditure guidance assumes an exchange rate of 5.10 USD:BRL for the Tucumã Project based on designated
foreign exchange hedges with a weighted average ceiling and floor of 5.10 and 5.23 USD:BRL, respectively. All other capital
expenditures assume an exchange rate of 5.00 USD:BRL. Figures presented below are in USD millions.
Caraíba Operations
Growth $80 - $90
Sustaining $100 - $110
Total, Caraíba Operations $180 - $200
Tucumã Project
Growth $65 - $75
Capitalized Ramp-Up Costs $4 - $6
Sustaining $2 - $5
Total, Tucumã Project $71 - $86
Xavantina Operations
Growth $3 - $5
Sustaining $15 - $18
Total, Xavantina Operations $18 - $23
Consolidated Exploration Programs $30 - $40
Company Total
Growth $148 - $170
Capitalized Ramp-Up Costs $4 - $6
Sustaining $117 - $133
Exploration $30 - $40
Total, Company $299 - $349
(*) 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.
CONFERENCE CALL DETAILS
The Company will hold a conference call on Friday, March 8, 2024 at 11:30 am Eastern time (8:30 am Pacific time) to discuss
these results.
Date: Friday, March 8, 2024
Time: 11:30 am Eastern time (8:30 am Pacific time)
Dial in: North America: 1-800-319-4610, International: +1-604-638-5340
please dial in 5-10 minutes prior and ask to join the call
Pre-Register: Registration link (pre-register to bypass the live operator queue)
Replay: North America: 1-800-319-6413, International: +1-604-638-9010
Replay Passcode: 0675
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, 2023 which is available on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
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: 2023 - Q4 2023 - Q3 2022 - Q4 2023 2022
Cost of production $ 39,790 $ 39,345 $ 40,067 $ 153,187 $ 146,292
Add (less):
Transportation costs & other 1,853 1,614 2,362 6,539 9,019
Treatment, refining, and other 7,332 6,574 9,989 28,323 36,156
By-product credits (3,394) (3,022) (6,103) (12,930) (22,282)
Incentive payments (1,693) (1,609) (1,092) (5,668) (3,914)
Net change in inventory 1,434 2,835 (861) 4,407 (6,040)
Foreign exchange translation and
other 20 (171) (47) (149) 373
C1 cash costs 45,342 45,566 44,315 173,709 159,604
(Gain) loss on foreign exchange
hedges (4,185) (3,458) (78) (11,417) 12,498
C1 cash costs including foreign
exchange hedges $ 41,157 $ 42,108 $ 44,237 $ 162,292 $ 172,102
Mining $ 26,646 $ 27,258 $ 26,433 $ 102,908 $ 94,086
Processing 8,177 8,362 8,033 30,736 30,155
Indirect 6,581 6,394 5,963 24,672 21,489
Production costs 41,404 42,014 40,429 158,316 145,730
By-product credits (3,394) (3,022) (6,103) (12,930) (22,282)
Treatment, refining and other 7,332 6,574 9,989 28,323 36,156
C1 cash costs 45,342 45,566 44,315 173,709 159,604
(Gain) loss on foreign exchange
hedges (4,185) (3,458) (78) (11,417) 12,498
C1 cash costs including foreign
exchange hedges $ 41,157 $ 42,108 $ 44,237 $ 162,292 $ 172,102
Costs per pound
Payable copper produced (lb, 000) 25,926 23,734 27,918 96,688 102,230
Mining $ 1.03 $ 1.15 $ 0.95 $ 1.06 $ 0.92
Processing $ 0.32 $ 0.35 $ 0.29 $ 0.32 $ 0.29
Indirect $ 0.25 $ 0.27 $ 0.21 $ 0.26 $ 0.21
By-product credits $ (0.13) $ (0.13) $ (0.22) $ (0.13) $ (0.22)
Treatment, refining and other $ 0.28 $ 0.28 $ 0.36 $ 0.29 $ 0.35
Copper C1 cash cost $ 1.75 $ 1.92 $ 1.59 $ 1.80 $ 1.55
(Gain) loss on foreign exchange
hedges $ (0.16) $ (0.15) $ — $ (0.12) $ 0.12
Copper C1 cash costs including
foreign exchange hedges $ 1.59 $ 1.77 $ 1.59 $ 1.68 $ 1.67
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: 2023 - Q4 2023 - Q3 2022 - Q4 2023 2022
Cost of production $ 7,122 $ 6,323 $ 4,834 $ 25,209 $ 24,768
Add (less):
Incentive payments (386) (320) (167) (1,424) (1,117)
Net change in inventory 65 213 258 862 (119)
By-product credits (248) (240) (199) (827) (613)
Smelting and refining costs 113 101 61 353 234
Foreign exchange translation
and other 296 453 462 806 742
C1 cash costs $ 6,962 $ 6,530 $ 5,249 $ 24,979 $ 23,895
Site general and administrative 1,492 1,304 1,196 5,366 3,648
Accretion of mine closure and
rehabilitation provision 111 112 106 439 436
Sustaining capital expenditure 5,499 4,258 4,547 16,300 14,638
Sustaining leases 1,861 1,832 1,559 7,093 4,311
Royalties and production taxes 785 808 262 2,487 1,041
AISC $ 16,710 $ 14,844 $ 12,919 $ 56,664 $ 47,969
Costs
Mining $ 3,430 $ 3,140 $ 2,311 $ 12,154 $ 12,529
Processing 2,315 2,165 2,067 8,433 7,917
Indirect 1,352 1,364 1,009 4,866 3,828
Production costs 7,097 6,669 5,387 25,453 24,274
Smelting and refining costs 113 101 61 353 234
By-product credits (248) (240) (199) (827) (613)
C1 cash costs $ 6,962 $ 6,530 $ 5,249 $ 24,979 $ 23,895
Site general and administrative 1,492 1,304 1,196 5,366 3,648
Accretion of mine closure and
rehabilitation provision 111 112 106 439 436
Sustaining capital expenditure 5,499 4,258 4,547 16,300 14,638
Sustaining leases 1,861 1,832 1,559 7,093 4,311
Royalties and production taxes 785 808 262 2,487 1,041
AISC $ 16,710 $ 14,844 $ 12,919 $ 56,664 $ 47,969
Costs per ounce
Payable gold produced (ounces) 16,867 17,579 11,786 59,222 42,669
Mining $ 203 $ 179 $ 196 $ 205 $ 294
Processing $ 137 $ 123 $ 175 $ 142 $ 186
Indirect $ 80 $ 78 $ 86 $ 82 $ 90
Smelting and refining $ 7 $ 6 $ 5 $ 6 $ 5
By-product credits $ (14) $ (15) $ (17) $ (13) $ (15)
Gold C1 cash cost $ 413 $ 371 $ 445 $ 422 $ 560
Gold AISC $ 991 $ 844 $ 1,096 $ 957 $ 1,124
Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA
The following table provides a reconciliation of EBITDA and Adjusted EBITDA to net income, its most directly comparable
IFRS measure.
Reconciliation: 2023 - Q4 2023 - Q3 2022 - Q4 2023 2022
Net Income $ 37,052 $ 2,811 $ 22,472 $ 94,304 $ 103,067
Adjustments:
Finance expense 5,284 8,017 12,290 25,822 33,223
Finance income (1,989) (2,976) (5,041) (12,465) (10,295)
Income tax expense (recovery) 8,415 (807) 7,540 18,047 23,316
Amortization and depreciation 24,980 21,299 16,361 83,024 58,969
EBITDA $ 73,742 $ 28,344 $ 53,622 $ 208,732 $ 208,280
Foreign exchange (gain) loss (24,871) 13,937 (4,569) (34,612) (19,910)
Share based compensation 477 (1,185) 4,123 9,218 7,931
Unrealized loss (gain) on copper
derivative contracts 955 1,814 — 115 —
Incremental COVID-19 costs — — — — 1,956
Adjusted EBITDA $ 50,303 $ 42,910 $ 53,176 $ 183,453 $ 198,257
Note: In 2023 Q3, EBITDA has been updated to incorporate the adjustment of finance income. EBITDA and Adjusted EBITDA for comparative periods have been updated
accordingly.
Adjusted net income attributable to owners of the Company and Adjusted net income per share attributable to
owners of the Company
The following table provides a reconciliation of Adjusted net income attributable to owners of the Company and Adjusted EPS
to net income attributable to the owners of the Company, its most directly comparable IFRS measure.
Reconciliation: 2023 - Q4 2023 - Q3 2022 - Q4 2023 2022
Net income as reported attributable
to the owners of the Company $ 36,549 $ 2,525 $ 22,159 $ 92,804 $ 101,831
Adjustments:
Share based compensation 477 (1,185) 4,123 9,218 7,931
Unrealized foreign exchange (gain)
loss on USD denominated balances
in MCSA (10,308) 9,481 (1,782) (15,296) 25
Unrealized foreign exchange (gain)
loss on foreign exchange derivative
contracts (9,852) 7,530 (3,017) (7,552) (32,960)
Unrealized loss on interest rate
derivative contracts 951 1,808 — 115 —
Incremental COVID-19 costs — — — — 1,944
Tax effect on the above adjustments 2,932 (2,873) 731 3,472 4,726
Adjusted net income attributable to
owners of the Company $ 20,749 $ 17,286 $ 22,214 $ 82,761 $ 83,497
Weighted average number of
common shares
Basic 98,099,791 93,311,434 91,522,358 94,111,548 90,789,925
Diluted 98,482,755 94,009,268 92,551,916 94,896,334 92,170,656
Adjusted EPS
Basic $ 0.21 $ 0.19 $ 0.24 $ 0.88 $ 0.92
Diluted $ 0.21 $ 0.18 $ 0.24 $ 0.87 $ 0.91
Net (Cash) Debt
The following table provides a calculation of net (cash) debt based on amounts presented in the Company’s consolidated
financial statements as at the periods presented.
December 31,
2023
September 30,
2023
December 31,
2022
Current portion of loans and borrowings $ 20,381 $ 11,764 $ 15,703
Long-term portion of loans and borrowings 405,852 407,656 402,354
Less:
Cash and cash equivalents (111,738) (44,757) (177,702)
Short-term investments — (42,843) (139,700)
Net (cash) debt $ 314,495 $ 331,820 $ 100,655
Working Capital and Available Liquidity
The following table provides a calculation for these based on amounts presented in the Company’s consolidated financial
statements as at the periods presented.
December 31,
2023
September 30,
2023
December 31,
2022
Current assets $ 199,487 $ 174,113 $ 392,427
Less: Current liabilities (173,800) (141,284) (129,121)
Working capital $ 25,687 $ 32,829 $ 263,306
Cash and cash equivalents 111,738 44,757 177,702
Short-term investments — 42,843 139,700
Available undrawn revolving credit facilities 150,000 150,000 75,000
Available liquidity $ 261,738 $ 237,600 $ 392,402
ABOUT ERO COPPER CORP
Ero is a high-margin, high-growth, low carbon-intensity copper producer with operations in Brazil and corporate headquarters in
Vancouver, B.C. The Company's primary asset is a 99.6% interest in the Brazilian copper mining company, Mineração
Caraíba S.A. ("MCSA"), 100% owner of the Company's Caraíba Operations (formerly known as the MCSA Mining Complex),
which are located in the Curaçá Valley, Bahia State, Brazil and include the Pilar and Vermelhos underground mines and the
Surubim open pit mine, and the Tucumã Project (formerly known as Boa Esperança), an IOCG-type copper project located in
Pará, Brazil. The Company also owns 97.6% of NX Gold S.A. ("NX Gold") which owns the Xavantina Operations (formerly
known as the NX Gold Mine), comprised of an operating gold and silver mine located in Mato Grosso, Brazil. Additional
information on the Company and its operations, including technical reports on the Caraíba Operations, Xavantina Operations
and Tucumã Project, can be found on the Company's website (www.erocopper.com), on SEDAR+ (www.sedarplus.ca), and on
EDGAR (www.sec.gov). The Company’s shares are publicly traded on the Toronto Stock Exchange and the New York Stock
Exchange under the symbol “ERO”.
FOR MORE INFORMATION, PLEASE CONTACT
Courtney Lynn, SVP, Corporate Development, Investor Relations & Sustainability
(604) 335-7504
CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS
This press release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation
(collectively, “forward-looking statements”). Forward-looking statements include statements that use forward-looking
terminology such as “may”, “could”, “would”, “will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”, “estimate”, “forecast”,
“schedule”, “anticipate”, “believe”, “continue”, “potential”, “view” or the negative or grammatical variation thereof or other
variations thereof or comparable terminology. Forward-looking statements may include, but are not limited to, statements with
respect to the Company's expected production, operating costs and capital expenditures at the Caraíba Operations, the
Tucumã Project and the Xavantina Operations; estimated completion dates for certain milestones, including initial production
at the Tucumã Project; the ability of the Company to achieve copper production levels as currently projected at the Tucumã
Project; the commencement of, and budget for, the first phase of work pursuant to the Furnas Project earn-in agreement and
execution of the definitive earn-in agreement with Vale Base Metals in accordance with the terms of the binding letter of intent;
and any other statement that may predict, forecast, indicate or imply future plans, intentions, levels of activity, results,
performance or achievements.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could
cause actual results, actions, events, conditions, performance or achievements to materially differ from those expressed or
implied by the forward-looking statements, including, without limitation, risks discussed in this press release and in the
Company’s Annual Information Form for the year ended December 31, 2023 (“AIF”) under the heading “Risk Factors”. The risks
discussed in this press release and in the AIF are not exhaustive of the factors that may affect any of the Company’s forward-
looking statements. Although the Company has attempted to identify important factors that could cause actual results,
actions, events, conditions, performance or achievements to differ materially from those contained in forward-looking
statements, there may be other factors that cause results, actions, events, conditions, performance or achievements to differ
from those anticipated, estimated or intended.