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- **Q3 Production Records**: Copper up 19%, gold up 17% YoY, October throughput at all-time highs.
- **Cost Control Success**: 5% YoY operating expense decline, $10M+ gold concentrate sales in Q4.
- **Mechanization Payoff**: Xavantina fully mechanized, Tucumã filtration capacity expansion.
- **Liquidity Strengthened**: Net debt leverage 1.9x, $111M cash on hand.
- **Gold Sales Momentum**: 3,000 tons concentrate shipped in Q4.

**【Management Opening Remarks】**
- CEO highlighted Q3 production records across operations, with October throughput at all-time highs.
- Emphasis on cost control and mechanization efforts at Xavantina mine.
- Gold concentrate sales progress in Q4, with $10 million invoiced in first week of Q4.

**【CEO Commentary】**
- Q3 copper production up 19% YoY, gold production up 17%.
- Focus on debottlenecking at Tucumã, with mobile filter press installation.
- Gold concentrate sales expected to meet Q4 guidance, with 3,000 tons shipped in Q4.

**【CFO Financial Commentary】**
- Q3 revenue $177M, adjusted EBITDA $77.1M.
- Liquidity improved to $111M, net debt leverage 1.9x.
- Foreign exchange hedges protecting against BRL inflation.

**【Q&A Highlights】**
- Cost pressures in Brazil and inflation mitigation strategies discussed.
- Xavantina mechanization and future production targets outlined.
- Tucumã throughput improvements and filtration capacity additions detailed.
- Gold concentrate sales timing and resource updates provided.
- Streaming agreement terms and concentrate sales subject to 25% stream royalty.

Ero Copper Corp (ERO) Q3 2025 Earnings Call Transcript

- **Record Production Growth**: Q2 copper production up 25% QoQ at Caraíba, gold +17% QoQ at Xavantina. Tucumã at 75% design capacity in June.
- **Cost Control & Liquidity**: C1 cash costs trending lower, net debt/EBITDA 2.1x. Liquidity remains strong at $113M.
- **Long-Term Growth**: Xavantina mechanization on track for H2 ramp-up, Furnas PEA expected H1 2026.
- **Shareholder Returns**: Deleveraging priority, with potential shareholder returns contingent on balance sheet strength.

**【CEO Summary Section】**
- **Operational Turnaround at Caraíba**: Q2 copper production increased 25% QoQ, driven by 50% reduction in unplanned downtime and 10% improvement in fleet availability. Full-year C1 cash costs expected at the lower end of guidance due to higher byproduct prices.
- **Xavantina Mechanization Success**: Q2 gold production up 17% QoQ, with mechanized stopes performing well. Full benefit of mine mechanization expected in H2, targeting sequential production increases.
- **Tucumã Commercial Production**: Achieved 75% of design capacity in June, with Q3 and Q4 expected to surpass this rate. Full-year guidance assumes 80%+ capacity by year-end.
- **Furnas Progress**: Phase 1 drill program completed, Phase 2 (17,000m) ongoing. PEA expected H1 2026.

**【CFO Financial Commentary】**
- **Q2 Financial Highlights**: Adjusted EBITDA $82.7M (vs. $53.3M Q1), net income $48.1M ($0.46/share). Liquidity $113M (cash $68.3M, revolver undrawn $45M).
- **Deleveraging Progress**: Net debt/EBITDA ratio improved to 2.1x (from 2.4x Q1). Target accelerated deleveraging in H2.
- **FX Hedging**: $240M hedge program (BRL 5.53-6.52 collar) supports cash flows through 2026.

**【Q&A Key Highlights】**
- **Tucumã Capacity**: Q3/Q4 expected to exceed June levels, with 80%+ design capacity by year-end. No throughput data disclosed for July.
- **Caraíba Costs**: H2 cash costs may trend higher due to lower grades, but full-year guidance remains at lower end of range.
- **Xavantina Recovery**: Q2 recovery rate dip due to carbonaceous material, but expected to normalize. Mechanization reducing dilution vs. manual mining.
- **Furnas Timeline**: PEA completion in H1 2026, with drill program on track for 2025. No timeline for FID provided.

Ero Copper Corp. (ERO) Q2 2025 Earnings Call Transcript

- **Tucuma Near Commercial Production**: Repaired third filter press in April; throughput set to increase post-May, supporting full-year guidance.
- **Financial Strength**: Q1 EBITDA $65.4M, net income $35.8M, and $116M liquidity. Copper and FX hedges mitigate price volatility.
- **Growth Drivers**: Furnas drill program on track; Xavantina grades improving; Caraiba sequential growth with contractor support.
- **Risk Mitigation**: Copper collars ($4.00 floor, $4.68 ceiling) and FX hedges (BRL5.52-6.49) protect cash flows amid macro uncertainty.

**【CEO Summary Section】**
- **Tucuma Commercial Production Progress**: Near completion of punch list items, with third tailings filter repaired in April. Management expects steady throughput increases post-May, targeting full-year guidance.
- **Caraiba Operations**: Q1 copper production decline due to lower grades, but achieved target mining rates at Pilar Mine in March. Sequential growth expected with additional contractor mobilization.
- **Xavantina Performance**: Q1 gold production down 27% YoY due to lower grades, but April grades improving. Low-profile equipment investments to support higher volumes and lower unit costs.
- **Furnas Expansion**: 8 drill rigs operational, Phase 1 drill program on track for Q3 completion. Preliminary economic assessment expected in H1 2026.

**【CFO Financial Commentary】**
- **Q1 Financial Highlights**: Adjusted EBITDA of $65.4M, net income of $35.8M, and liquidity of $116M. Credit facility increased to $200M, and $50M upfront proceeds from extended stream agreement.
- **Risk Management**: Copper collars covering 3,000 tons/month (April-Sept) with $4.00 floor and $4.68 ceiling. FX hedges (BRL5.52-6.49) mitigate currency risk through 2026.
- **Liquidity Actions**: $25M drawn from copper prepayment facility for Tucuma ramp-up. Stream agreement proceeds to fund Xavantina asset integrity program.

**【Q&A Key Takeaways】**
- **Tucuma Power Stability**: Oscillations reduced with late 2024 solution, no major disruptions. Long-term power normalization plan in design phase.
- **Grade Trends**: Tucuma high-grade upper benches expected to decline, but throughput improvements extend high-grade timeline. Xavantina grades improving in April, aligning with normalized full-year expectations.
- **Cost Management**: Capitalized development costs at Caraiba limit operating cost impact. FX hedging and metal price tailwinds support margins.
- **Furnas Exploration**: Encouraging early results, with updates expected in coming months. Focus on extending mine life and regional exploration.


Ero Copper Corp. (ERO) Q1 2025 Earnings Call Transcript

- **Tucuma Ramp-Up On Track**: Q1 2025 production constrained by minor equipment fixes, but final tailings filter repair due by end-March. Full-year guidance assumes stable production post-Q2.
- **Balance Sheet Strengthening**: $200M credit facility expansion supports deleveraging to 1.5x net debt ratio. Foreign exchange hedges limit BRL volatility impact.
- **Furnas Project Momentum**: 45,000m drill program progressing; preliminary economic assessment expected Q2 2026. Strategic partnership with Vale Base Metals maintains project discipline.
- **Xavantina Transition Costs**: Q1 2025 C1 costs elevated due to mechanization transition. Long-term cost reduction potential (15-20%) offsets near-term capex (~$20M).
- **Scenario Flexibility**: 40,000m Furnas drill program adjustable; Xavantina capex curtailment optionality if copper price <$3.00/lb.


**【CEO Strategic Overview】**
- **Tucuma Commercialization Progress**: Achieved on-time commissioning with no safety incidents; plant recoveries exceed design targets (89%+ copper recovery). Q1 2025 production ramp-up hampered by minor equipment issues, but final tailings filter repair on track for Q1 completion. Full-year guidance assumes stable production cadence post-Q2.
- **Balance Sheet Deleveraging**: Targeting normalized net debt leverage ratio of 1.5x by mid-2025. Recent credit facility expansion to $200M (extended maturity to 2028) enhances liquidity flexibility.
- **Long-Term Growth Initiatives**: Furnas project advancing with 45,000m drill program (Phase 1: 28,000m by mid-2025; Phase 2: 17,000m by year-end). Preliminary economic assessment expected Q2 2026.
- **Shareholder Returns**: Capital allocation prioritized for deleveraging before pursuing buybacks or dividends.

**【CFO Financial Highlights】**
- **Q4 2024 Results**: Record copper production driven by Tucuma ramp-up. Adjusted EBITDA $59.1M (Q4) / $216.2M (FY). Foreign exchange losses ($5.9M Q4 / $8.2M FY) due to BRL hedging contracts. Pro forma liquidity $140.4M post-credit facility expansion.
- **2025 Guidance**: All-in sustaining costs elevated due to Xavantina mechanization ($10M+ capex) and Furnas exploration. FX sensitivity remains key risk (BRL5.43-6.49 collar coverage through 2025).

**【Key Q&A Takeaways】**
- **Tucuma Power Stability**: Long-term off-site power quality solution nearing completion. Q1 power-related interruptions reduced from 15-20 daily trips to <1/month. No operational impact since Q4 fixes.
- **Xavantina Transition**: Q1 2025 lower grades (1.8% vs. 2.2% Q4) due to pillar recovery timing. Mechanized mining to reduce costs 15-20% by 2026. Near-term capex (~$20M) for asset integrity upgrades.
- **C1 Cost Drivers**: Brazilian real depreciation (BRL6.49 collar), deeper mine profiles, and lower grades at Surubim/Vermelhos. 2025 C1 guidance reflects 10%+ FX conservatism.
- **Scenario Planning**: 40,000m Furnas drill program flexible; 28,000m mandatory work could be deferred if copper price <$3.00/lb. Xavantina capex could be curtailed if macro volatility persists.


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