• Copper Production at Kariba: Increased by 11.9% to 9,920 tons of copper in concentrate.

• Full Year Production Guidance at Kariba: Adjusted to 35,000 to 37,000 tons of copper in concentrate.

• C1 Cash Costs: Decreased by 24.5% to $1.63 per pound of copper produced.

• Full Year Copper Production Guidance for Tucuman: Revised to 8,000 to 11,000 tons in concentrate.

• Gold Production at JTI: Totaled 13,485 ounces.

• Quarterly Operating Cash Flows: $52.7 million.

• Adjusted EBITDA: $62.2 million.

• Adjusted Net Income: $27.6 million or 27 per share on a fully diluted basis.

• Total Balance Sheet Liquidity: $125.2 million at quarter end.

• Warning! GuruFocus has detected 6 Warning Signs with ERO.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ero Copper Corp (NYSE:ERO) successfully completed the construction of the Tua operation, achieving the first production of saleable copper concentrate without any lost time injuries.

• The company executed a definitive earning agreement on the FNAs copper gold project with Vale Base Metals, advancing the project towards a final investment decision.

• Ero Copper Corp (NYSE:ERO) achieved an 11.9% increase in copper production at the Kariba operation, driven by higher mine grades.

• The company reported a significant decrease in C1 cash costs by 24.5% to $1.63 per pound of copper produced, supported by favorable treatment and refining terms and a favorable exchange rate.

• Ero Copper Corp (NYSE:ERO) maintained strong financial performance with quarterly operating cash flows of $52.7 million and adjusted EBITDA of $62.2 million, alongside a robust liquidity position of $125.2 million.

Negative Points

• The company faced operational challenges at both the Kariba and Tucuman operations, impacting production rates and leading to revised production guidance.

• Underground development rates at Kariba did not advance as anticipated due to underperformance by a third-party contractor, necessitating the engagement of a second contractor.

• Voltage fluctuations on the regional power grid affected the ramp-up of the Tucuman operation, causing intermittent power disruptions and delaying commercial production.

• Ero Copper Corp (NYSE:ERO) had to revise its full-year copper production guidance for Tucuman to a range of 8 to 11,000 tons due to power issues and extended ramp-up timelines.

• The company anticipates that Kariba will initially underperform relative to previous 2025 guidance due to ongoing development challenges, impacting production in the first half of the year.