Ero Copper Achieves First Saleable Copper Concentrate Production and Initiates Ramp-up at the Tucumã Project

Rhea-AI Summary

Ero Copper Corp. (TSX: ERO, NYSE: ERO) has achieved a significant milestone at its Tucumã Project with the production of saleable copper concentrate, exceeding process design concentrate grade targets. This follows the successful commissioning of milling and flotation operations in Q2 2024. Key achievements include:

- Completion of crushers, screening, and conveyance systems in March 2024
- Commencement of full mine operations in April 2024
- First ore through milling and flotation circuits in mid-June 2024
- First saleable copper concentrate production on July 18, 2024

The company expects to reach commercial production levels by the end of Q3 2024. CEO David Strang highlighted the project's completion on time, without injury or environmental incident, and within budget. Approximately 85% of capital expenditures were made within Brazil, showcasing the country's mining and project development capabilities.

Positive

• Production of saleable copper concentrate exceeding process design grade targets
• Successful commissioning of milling and flotation operations ahead of schedule
• Project completed on time and within budget
• No injuries or environmental incidents during construction
• Expected to reach commercial production by end of Q3 2024
• 85% of capital expenditures made within Brazil, supporting local economy

Negative

• None.

Insights

Financial Analyst

The initiation of saleable copper concentrate production at Ero Copper's Tucumã Project marks a significant milestone. Achieving this ahead of schedule and meeting design targets suggest efficient project execution. Investors should view this as a positive signal towards future revenue generation and cash flows. The company is on track to meet commercial production by the end of Q3 2024, which aligns well with the currently strong copper pricing environment. Successful ramp-up to 80% of design capacity and recovery rates will be critical for sustained financial performance. Importantly, the completion within budget and without major incidents demonstrates sound project management and cost control, which are important for maintaining investor confidence and potentially enhancing the company's valuation.

Market Research Analyst

The timing of Ero Copper's milestones at the Tucumã Project is particularly strategic, given the robust performance of copper prices year-to-date. As global demand for copper, driven by sectors like renewable energy and electric vehicles, remains strong, entering the market with saleable copper concentrate positions Ero Copper advantageously. This milestone not only enhances Ero Copper's production capabilities but also strengthens its competitive stance in the market. The company's methodological approach to reaching commercial production could result in a stable increase in market share. Additionally, the involvement of Brazilian engineering teams and local capital expenditures underscores the operational and economic benefits of leveraging local resources, potentially leading to cost efficiencies and fostering strong community relations.

Tech Expert

From a technological perspective, the successful commissioning of the milling and flotation operations at the Tucumã Project is notable. The fact that the produced copper concentrate exceeded the process design grade targets speaks to the effectiveness and precision of the processing technology deployed. This indicates robust technological implementations and operational efficiency. Achieving the first 24-hour continuous shift without setbacks highlights the reliability of the systems in place. For a tech-focused evaluation, this milestone suggests that the technologies used not only meet but potentially exceed industry standards, which could lead to lower operational costs and higher-grade yield over time. This technological competence will be a key differentiator for Ero Copper in terms of operational excellence and scalability potential.

VANCOUVER, British Columbia, July 23, 2024 (GLOBE NEWSWIRE) -- Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero" or the “Company”) is pleased to announce a significant commissioning milestone at the Tucumã Project (the "Project") with the production of saleable copper concentrate, which exceeded process design concentrate grade targets. This milestone was achieved following the successful commissioning of the milling and flotation operations prior to the end of Q2 2024. Remaining work on site is focused on concluding non-critical path surface installations and ramping up to commercial production.

2024 commissioning milestones:

• Completion and commissioning of primary, secondary, tertiary crushers, screening and conveyance systems - March 2024
• Completion of mine pre-strip and commencement of full mine operations - April 2024
• First ore through the milling and flotation circuits - mid-June 2024
• First batch of copper concentrate production - June 24, 2024
• Completion of first 24-hour shift of continuous mill operations - July 7, 2024
• First saleable copper concentrate production, which exceeded process design concentrate grade targets - July 18, 2024
• Expect to reach commercial production levels, defined as 80% of design mill capacity and 80% of design recovery rates, by the end of Q3 2024

"Producing our first saleable copper concentrate at the Tucumã Project and successfully completing the first 24-hour shift of continuous mining and milling operations are important milestones as we begin our ramp-up towards commercial production," said David Strang, Chief Executive Officer. "We are rapidly progressing towards an important inflection point for our consolidated copper production and cash flows. It is an exciting time for the Company and with copper prices performing well year-to-date, the timing of the completion and ramp-up of Tucumã could not be better.

"I would like to extend my congratulations to our entire team, from senior leadership to our construction and commissioning teams, as well as our contracting, engineering, and supply chain partners. Their outstanding work on the construction of Tucumã – completed on time, without injury or environmental incident, and within line of sight of the original Project budget – is commendable. Notably, Tucumã was designed, built, and managed by Ero's Brazilian Engineering, Procurement, Construction Management team, with approximately 85% of the capital expenditures made within Brazil. This achievement is a testament to the depth and technical strength of mining and project development talent and resources available in Brazil."

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 SEDAR+ at www.sedarplus.ca/landingpage/ 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
info@erocopper.com

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 expected achievement and timing of future commissioning milestones and commercial production at the Tucumã Project, 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 not a guarantee of future performance. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve statements about the future and are inherently uncertain, and the Company’s actual results, achievements or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to herein and in the AIF under the heading “Risk Factors”.

The Company’s forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management on the date the statements are made, many of which may be difficult to predict and beyond the Company’s control. In connection with the forward-looking statements contained in this press release and in the AIF, the Company has made certain assumptions about, among other things: favourable equity and debt capital markets; the ability to raise any necessary additional capital on reasonable terms to advance the production, development and exploration of the Company’s properties and assets; future prices of copper, gold and other metal prices; the timing and results of exploration and drilling programs; the accuracy of any mineral reserve and mineral resource estimates; the geology of the Caraíba Operations, the Xavantina Operations and the Tucumã Project being as described in the respective technical report for each property; production costs; the accuracy of budgeted exploration, development and construction costs and expenditures; the price of other commodities such as fuel; future currency exchange rates and interest rates; operating conditions being favourable such that the Company is able to operate in a safe, efficient and effective manner; work force continuing to remain healthy in the face of prevailing epidemics, pandemics or other health risks, political and regulatory stability; the receipt of governmental, regulatory and third party approvals, licenses and permits on favourable terms; obtaining required renewals for existing approvals, licenses and permits on favourable terms; requirements under applicable laws; sustained labour stability; stability in financial and capital goods markets; availability of equipment; positive relations with local groups and the Company’s ability to meet its obligations under its agreements with such groups; and satisfying the terms and conditions of the Company’s current loan arrangements. Although the Company believes that the assumptions inherent in forward-looking statements are reasonable as of the date of this press release, these assumptions are subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking statements. The Company cautions that the foregoing list of assumptions is not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking statements contained in this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.

FAQ

When did Ero Copper (ERO) achieve first saleable copper concentrate production at the Tucumã Project?

Ero Copper achieved first saleable copper concentrate production at the Tucumã Project on July 18, 2024, exceeding process design concentrate grade targets.

What is the timeline for Ero Copper (ERO) to reach commercial production at the Tucumã Project?

Ero Copper expects to reach commercial production levels at the Tucumã Project, defined as 80% of design mill capacity and 80% of design recovery rates, by the end of Q3 2024.

What major milestones did Ero Copper (ERO) achieve during the Tucumã Project commissioning in 2024?

Key milestones in 2024 included completing crushers and conveyance systems in March, starting full mine operations in April, first ore through milling circuits in June, and first saleable copper concentrate production in July.

How much of the Tucumã Project's capital expenditures were made within Brazil for Ero Copper (ERO)?

Approximately 85% of the capital expenditures for Ero Copper's Tucumã Project were made within Brazil, showcasing the country's mining and project development capabilities.