Ero Copper Q2 2025 Earnings Call Transcript Analysis: Earnings Presentation, Financial Results, and CEO Commentary

Ero Copper Corp. (ERO) reported Q2 2025 earnings, with results available on their website. The company's operating and financial results were released yesterday afternoon, and a corresponding earnings presentation can be downloaded from the webcast and the company's website. Ero Copper's management team, including Makko DeFilippo, Wayne Drier, and Gelson Batista, will discuss the results on the earnings call.

Ero Copper Corp. (ERO) has reported its second-quarter (Q2) 2025 operating and financial results, highlighting significant advancements in copper and gold production. The company's performance was driven by record copper production and increased gold output, coupled with higher metal prices compared to the first quarter of 2025.

Key Highlights:

1. Copper Production: The company achieved a record copper production of 15,513 tonnes during Q2 2025, reflecting the continued ramp-up of the Tucumã Operation and higher grades and mining rates at the Caraíba Operations. The Caraíba Operations produced 9,162 tonnes of copper in concentrate at an average C1 cash cost of $2.07 per pound, representing approximately 25% quarter-on-quarter production growth. The Tucumã Operation produced 6,351 tonnes of copper in concentrate, an increase of 25% from Q1 2025.

2. Gold Production: Gold production during the quarter was 7,743 ounces at an average C1 cash cost and All-in Sustaining Cost (AISC) of $1,115 and $2,234 per ounce, respectively, representing approximately 17% higher production at similar cash costs and AISC quarter-on-quarter.

3. Financial Performance: Quarterly financial performance benefited from record consolidated copper production, increased gold production, and higher metal prices compared to Q1 2025. Net income attributable to the owners of the Company was $70.5 million ($0.68 per share on a diluted basis), while adjusted net income was $48.1 million ($0.46 per share on a diluted basis). Adjusted EBITDA was $82.7 million. At quarter-end, available liquidity was $113.3 million, including $68.3 million in cash and cash equivalents and $45.0 million of undrawn availability under the Company's senior secured revolving credit facility.

4. Guidance Updates: The company has reaffirmed full-year guidance at Caraíba and updated guidance ranges at Tucumã and Xavantina to reflect H1 2025 performance. Full-year copper production guidance has been updated to 30,000 to 37,500 tonnes at C1 cash costs of $1.10 to $1.30 per pound of copper produced. At the Xavantina Operations, full-year production guidance has been updated to 40,000 to 50,000 ounces with C1 cash costs of $850 to $1,000 per ounce of gold produced and AISC of $1,800 to $2,000 per ounce.

5. Operational Initiatives: The company is implementing several operational excellence initiatives at Caraíba, including focusing the mining fleet to the upper levels of the Pilar Mine to reduce haul distances, implementing new technologies to enhance productivity and safety, and improving fleet and mine infrastructure maintenance to increase mobile equipment availability and reduce unplanned downtime.

Management Comments:

Makko DeFilippo, President and Chief Executive Officer, commented, "We made meaningful progress towards the achievement of our 2025 strategy during the second quarter. Highlights included the continued ramp-up and declaration of commercial production at Tucumã, the initiation of debt repayment, and the early completion of Phase 1 drilling at Furnas ahead of schedule. Operational performance across all of our assets improved in Q2 with record consolidated copper production, and we are encouraged by the momentum we are carrying into the second half of the year, driven by optimization and technology initiatives we executed in H1 2025."

Conclusion:

Ero Copper Corp.'s Q2 2025 results demonstrate strong operational performance and financial resilience, with significant advancements in copper and gold production. The company's strategic initiatives and operational excellence programs are expected to drive continued growth and efficiency in the second half of the year. Investors and financial professionals should closely monitor the earnings call and subsequent updates to assess the company's progress and future outlook.

References:

[1] https://www.globenewswire.com/news-release/2025/07/31/3125515/0/en/Ero-Copper-Reports-Second-Quarter-2025-Operating-and-Financial-Results.html