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.
- 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.”
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-of- mine 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.
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