Ero Copper Reports Fourth Quarter and Full Year 2024 Operating and Financial Results
Ero Copper (TSX: ERO, NYSE: ERO) has reported its Q4 and full-year 2024 financial results, achieving record quarterly copper production of 12,883 tonnes and full-year production of 40,600 tonnes in concentrate. Key financial metrics include Q4 cash flow from operations of $60.8M and full-year of $145.4M, with Q4 adjusted EBITDA of $59.1M and full-year of $216.2M.
The company reported a net loss of $48.9M ($0.47 per diluted share) for Q4 and $68.5M ($0.66 per diluted share) for the full year. Copper C1 cash costs at Caraíba Operations were $1.85/lb for Q4 and $1.97/lb for the year. Gold production reached 8,936 ounces in Q4 and 57,210 ounces for the full year.
The company enhanced its financial flexibility by amending its Credit Facility, increasing commitments from $150M to $200M and extending maturity to December 2028. Year-end available liquidity stood at $90.4M. For 2025, Ero Copper projects consolidated copper production of 75,000-85,000 tonnes, with the Tucumã Operation expected to drive significant growth.
Ero Copper (TSX: ERO, NYSE: ERO) ha riportato i risultati finanziari del Q4 e dell'intero anno 2024, raggiungendo una produzione record di rame di 12.883 tonnellate nel trimestre e una produzione annuale di 40.600 tonnellate in concentrato. Le principali metriche finanziarie includono un flusso di cassa dalle operazioni di $60,8 milioni nel Q4 e un totale annuale di $145,4 milioni, con un EBITDA rettificato di $59,1 milioni per il Q4 e di $216,2 milioni per l'intero anno.
L'azienda ha riportato una perdita netta di $48,9 milioni ($0,47 per azione diluita) per il Q4 e di $68,5 milioni ($0,66 per azione diluita) per l'anno intero. I costi di cassa C1 del rame presso le operazioni di Caraíba sono stati di $1,85/lb per il Q4 e di $1,97/lb per l'anno. La produzione d'oro ha raggiunto 8.936 once nel Q4 e 57.210 once per l'intero anno.
L'azienda ha migliorato la propria flessibilità finanziaria modificando la propria linea di credito, aumentando gli impegni da $150 milioni a $200 milioni e prolungando la scadenza a dicembre 2028. Alla fine dell'anno, la liquidità disponibile era di $90,4 milioni. Per il 2025, Ero Copper prevede una produzione consolidata di rame tra 75.000 e 85.000 tonnellate, con l'operazione Tucumã che si prevede guiderà una crescita significativa.
Ero Copper (TSX: ERO, NYSE: ERO) ha informado sus resultados financieros del Q4 y del año completo 2024, logrando una producción trimestral récord de cobre de 12,883 toneladas y una producción anual de 40,600 toneladas en concentrado. Las métricas financieras clave incluyen un flujo de caja de operaciones de $60.8 millones en el Q4 y un total anual de $145.4 millones, con un EBITDA ajustado de $59.1 millones para el Q4 y de $216.2 millones para el año completo.
La compañía reportó una pérdida neta de $48.9 millones ($0.47 por acción diluida) para el Q4 y de $68.5 millones ($0.66 por acción diluida) para el año completo. Los costos de efectivo C1 de cobre en las operaciones de Caraíba fueron de $1.85/lb para el Q4 y de $1.97/lb para el año. La producción de oro alcanzó 8,936 onzas en el Q4 y 57,210 onzas para el año completo.
La compañía mejoró su flexibilidad financiera al modificar su línea de crédito, aumentando los compromisos de $150 millones a $200 millones y extendiendo el vencimiento a diciembre de 2028. Al final del año, la liquidez disponible era de $90.4 millones. Para 2025, Ero Copper proyecta una producción consolidada de cobre de 75,000 a 85,000 toneladas, con la operación Tucumã que se espera impulse un crecimiento significativo.
Ero Copper (TSX: ERO, NYSE: ERO)는 2024년 4분기 및 연간 재무 결과를 발표하며 분기별 구리 생산량이 12,883톤, 연간 생산량이 40,600톤으로 기록을 세웠습니다. 주요 재무 지표로는 4분기 운영으로 인한 현금 흐름이 6,080만 달러, 연간 1억 4,540만 달러이며, 4분기 조정 EBITDA는 5,910만 달러, 연간 2억 1,620만 달러입니다.
회사는 4분기에 4,890만 달러($0.47의 희석 주당 손실) 및 연간 6,850만 달러($0.66의 희석 주당 손실)를 기록했습니다. Caraíba 운영에서의 구리 C1 현금 비용은 4분기에 파운드당 $1.85, 연간 $1.97이었습니다. 금 생산량은 4분기에 8,936온스, 연간 57,210온스에 달했습니다.
회사는 신용 시설을 수정하여 재무 유연성을 향상시켰으며, 약정 금액을 1억 5천만 달러에서 2억 달러로 늘리고 만기를 2028년 12월로 연장했습니다. 연말 가용 유동성은 9,040만 달러였습니다. 2025년을 위해 Ero Copper는 75,000-85,000톤의 통합 구리 생산을 계획하고 있으며, Tucumã 운영이 상당한 성장을 이끌 것으로 예상됩니다.
Ero Copper (TSX: ERO, NYSE: ERO) a publié ses résultats financiers pour le 4ème trimestre et l'année complète 2024, atteignant une production trimestrielle record de 12 883 tonnes de cuivre et une production annuelle de 40 600 tonnes en concentré. Les indicateurs financiers clés comprennent un flux de trésorerie d'exploitation de 60,8 millions de dollars pour le 4ème trimestre et de 145,4 millions de dollars pour l'année complète, avec un EBITDA ajusté de 59,1 millions de dollars pour le 4ème trimestre et de 216,2 millions de dollars pour l'année entière.
La société a enregistré une perte nette de 48,9 millions de dollars (0,47 $ par action diluée) pour le 4ème trimestre et de 68,5 millions de dollars (0,66 $ par action diluée) pour l'année complète. Les coûts de production C1 du cuivre aux opérations de Caraíba étaient de 1,85 $/lb pour le 4ème trimestre et de 1,97 $/lb pour l'année. La production d'or a atteint 8 936 onces au 4ème trimestre et 57 210 onces pour l'année entière.
La société a amélioré sa flexibilité financière en modifiant sa ligne de crédit, augmentant les engagements de 150 millions de dollars à 200 millions de dollars et en prolongeant l'échéance jusqu'en décembre 2028. À la fin de l'année, la liquidité disponible s'élevait à 90,4 millions de dollars. Pour 2025, Ero Copper prévoit une production consolidée de cuivre de 75 000 à 85 000 tonnes, l'exploitation de Tucumã devant entraîner une croissance significative.
Ero Copper (TSX: ERO, NYSE: ERO) hat seine finanziellen Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 veröffentlicht und eine Rekordproduktion von 12.883 Tonnen Kupfer im Quartal sowie eine Jahresproduktion von 40.600 Tonnen im Konzentrate erzielt. Wichtige Finanzkennzahlen umfassen einen Cashflow aus dem operativen Geschäft von 60,8 Millionen USD im 4. Quartal und insgesamt 145,4 Millionen USD im Jahr, mit einem bereinigten EBITDA von 59,1 Millionen USD für das 4. Quartal und 216,2 Millionen USD für das gesamte Jahr.
Das Unternehmen berichtete über einen Nettoverlust von 48,9 Millionen USD (0,47 USD pro verwässerter Aktie) für das 4. Quartal und 68,5 Millionen USD (0,66 USD pro verwässerter Aktie) für das gesamte Jahr. Die C1-Bargeldkosten für Kupfer in den Caraíba-Betrieben lagen im 4. Quartal bei 1,85 USD/lb und im Jahr bei 1,97 USD/lb. Die Goldproduktion erreichte 8.936 Unzen im 4. Quartal und 57.210 Unzen für das gesamte Jahr.
Das Unternehmen hat seine finanzielle Flexibilität erhöht, indem es seine Kreditfazilität geändert hat, die Verpflichtungen von 150 Millionen USD auf 200 Millionen USD erhöht und die Fälligkeit auf Dezember 2028 verlängert hat. Am Jahresende betrug die verfügbare Liquidität 90,4 Millionen USD. Für 2025 plant Ero Copper eine konsolidierte Kupferproduktion von 75.000 bis 85.000 Tonnen, wobei der Betrieb Tucumã voraussichtlich ein erhebliches Wachstum antreiben wird.
- Record Q4 copper production of 12,883 tonnes
- Strong Q4 cash flow from operations of $60.8M
- Credit Facility increased from $150M to $200M
- Tucumã Operation set for significant production growth in 2025
- Available liquidity of $90.4M at year-end
- Q4 net loss of $48.9M ($0.47 per share)
- Full-year net loss of $68.5M ($0.66 per share)
- Increased gold AISC to $1,691/oz in Q4
- Lower gold production and grades compared to 2023
Insights
Ero Copper delivered record copper production in Q4 with 12,883 tonnes, bringing full-year output to 40,600 tonnes. However, financial results show a mixed picture. Despite positive operating cash flow of
The substantial gap between operating results and bottom-line performance reflects the capital-intensive ramp-up phase at the Tucumã Operation, which contributed 4,317 tonnes of copper in Q4 but hasn't yet reached commercial production. Notably, the company reported adjusted EBITDA of
Cost control appears reasonably effective with copper C1 cash costs at
The company has enhanced its financial flexibility by expanding its credit facility from
2025 guidance projects substantial growth with consolidated copper production expected to reach 75,000-85,000 tonnes - representing an
Ero Copper's operational performance reveals several key developments across its mining portfolio. At Caraíba, the engagement of an additional development contractor signals proactive management of underground flexibility challenges, addressing a critical operational bottleneck. This investment in accelerated development should improve mining sequence optionality by Q2-Q3 2025.
The Tucumã Operation's ramp-up continues with encouraging metallurgical indicators - 89.1% recovery rates align with design specifications, validating the processing flowsheet. However, the scheduled downtime in Q1 2025 for the tailings filtration circuit indicates typical commissioning challenges requiring resolution before full-scale production. The proactive approach to addressing these bottlenecks during ramp-up is operationally sound rather than forcing throughput at the expense of system stability.
Mining operations at Tucumã running ahead of schedule has created valuable ore stockpiles, providing operational flexibility during the commissioning phase. This buffer will help maintain consistent mill feed during the transition to commercial production expected in H1 2025.
At Xavantina, the gold operation faces grade challenges with both quarterly and annual production decreases reflecting lower processed gold grades. The projected 2025 gold C1 cash cost range of
The 2025 capital expenditure reduction to
(all amounts in US dollars, unless otherwise noted)
VANCOUVER, British Columbia, March 06, 2025 (GLOBE NEWSWIRE) -- 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.
- Cash flow from operations for the quarter and year were
(*) 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.
(*) 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.
| OPERATING HIGHLIGHTS | 2024 - Q4 | 2024 - Q3 | 2023 - Q4 | 2024 | 2023 | |||||
| Copper (Caraíba Operations) | ||||||||||
| Ore Mined (tonnes) | 713,980 | 874,937 | 886,271 | 3,274,410 | 3,341,121 | |||||
| Ore Processed (tonnes) | 719,942 | 900,289 | 812,202 | 3,431,294 | 3,231,667 | |||||
| Grade (% Cu) | 1.30 | 1.20 | 1.59 | 1.14 | 1.49 | |||||
| Recovery (%) | 91.8 | 91.9 | 91.0 | 90.6 | 91.4 | |||||
| Cu Production (tonnes) | 8,566 | 9,920 | 11,760 | 35,444 | 43,857 | |||||
| Cu Production (000 lbs) | 18,883 | 21,871 | 25,926 | 78,140 | 96,688 | |||||
| Cu Sold in Concentrate (tonnes) | 8,420 | 9,970 | 11,429 | 36,557 | 42,595 | |||||
| Cu Sold in Concentrate (000 lbs) | 18,563 | 21,980 | 25,197 | 80,594 | 93,906 | |||||
| Cu C1 cash cost(1)(2) | $ | 1.85 | $ | 1.63 | $ | 1.75 | $ | 1.97 | $ | 1.80 |
| Copper (Tucumã Operation) | ||||||||||
| Ore Mined (tonnes) | 1,065,108 | 867,315 | — | 1,932,423 | — | |||||
| Ore Processed (tonnes) | 223,013 | 110,778 | — | 333,791 | — | |||||
| Grade (% Cu) | 2.17 | 1.00 | — | 1.78 | — | |||||
| Recovery (%) | 89.1 | 75.7 | — | 86.6 | — | |||||
| Cu Production (tonnes) | 4,317 | 839 | — | 5,156 | — | |||||
| Cu Production (000 lbs) | 9,516 | 1,850 | — | 11,366 | — | |||||
| Cu Sold in Concentrate (tonnes) | 3,750 | 357 | — | 4,107 | — | |||||
| Cu Sold in Concentrate (000 lbs) | 8,268 | 787 | — | 9,055 | — | |||||
| Gold (Xavantina Operations) | ||||||||||
| Ore Mined (tonnes) | 26,119 | 41,761 | 34,417 | 146,160 | 135,982 | |||||
| Ore Processed (tonnes) | 26,120 | 41,761 | 34,416 | 146,161 | 136,002 | |||||
| Grade (g / tonne) | 11.18 | 11.41 | 17.18 | 13.37 | 15.13 | |||||
| Recovery (%) | 92.8 | 92.5 | 88.7 | 92.0 | 89.5 | |||||
| Au Production (oz) | 8,936 | 13,485 | 16,867 | 57,210 | 59,222 | |||||
| Au Sold (oz) | 11,106 | 14,615 | 18,479 | 60,195 | 57,949 | |||||
| Au C1 cash cost(1) | $ | 744 | $ | 539 | $ | 413 | $ | 493 | $ | 422 |
| Au AISC(1) | $ | 1,691 | $ | 1,034 | $ | 991 | $ | 1,006 | $ | 957 |
(1) EBITDA, adjusted EBITDA, adjusted net income (loss) attributable to owners of the Company, adjusted net income (loss) per share attributable to owners of the Company, net (cash) debt, working capital, copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, gold C1 cash cost and gold AISC are non-IFRS measures. These measures 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.
(2) Copper C1 cash cost including foreign exchange hedges was
FINANCIAL HIGHLIGHTS
($ in millions, except per share amounts)
| 2024 - Q4 | 2024 - Q3 | 2023 - Q4 | 2024 | 2023 | |||||||||
| Revenues | $ | 122.5 | $ | 124.8 | $ | 116.4 | $ | 470.3 | $ | 427.5 | |||
| Gross profit | 52.4 | 53.7 | 41.9 | 180.6 | 156.8 | ||||||||
| EBITDA(1) | (31.4 | ) | 74.5 | 73.7 | 24.8 | 208.7 | |||||||
| Adjusted EBITDA(1) | 59.1 | 62.2 | 50.3 | 216.2 | 183.5 | ||||||||
| Cash flow from operations | 60.8 | 52.7 | 49.4 | 145.4 | 163.1 | ||||||||
| Net (loss) income | (48.9 | ) | 41.4 | 37.1 | (67.8 | ) | 94.3 | ||||||
| Net (loss) income attributable to owners of the | (48.9 | ) | 40.9 | 36.5 | (68.5 | ) | 92.8 | ||||||
| Per share (basic) | (0.47 | ) | 0.40 | 0.37 | (0.66 | ) | 0.99 | ||||||
| Per share (diluted) | (0.47 | ) | 0.39 | 0.37 | (0.66 | ) | 0.98 | ||||||
| Adjusted net income attributable to owners of the Company(1) | 17.4 | 27.6 | 20.7 | 80.4 | 82.8 | ||||||||
| Per share (basic) | 0.17 | 0.27 | 0.21 | 0.78 | 0.88 | ||||||||
| Per share (diluted) | 0.17 | 0.27 | 0.21 | 0.78 | 0.87 | ||||||||
| Cash, cash equivalents, and short-term | 50.4 | 20.2 | 111.7 | 50.4 | 111.7 | ||||||||
| Working (deficit) capital(1) | (69.9 | ) | (60.9 | ) | 25.7 | (69.9 | ) | 25.7 | |||||
| Net debt(1) | 551.8 | 518.7 | 314.5 | 551.8 | 314.5 | ||||||||
(1) EBITDA, adjusted EBITDA, adjusted net income (loss) attributable to owners of the Company, adjusted net income (loss) per share attributable to owners of the Company, net (cash) debt, working capital, copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, gold C1 cash cost and gold AISC are non-IFRS measures. These measures 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.
2025 PRODUCTION AND COST GUIDANCE(*)
Consolidated copper production for 2025 is expected to range between 75,000 to 85,000 tonnes. The Company remains focused on steadily increasing plant throughput and achieving commercial production at the Tucumã Operation in H1 2025. As a result, copper production is expected to increase sequentially each quarter, with Tucumã expected to contribute significantly to the full-year consolidated copper production.
At the Xavantina Operations, annual gold production is expected to remain steady at 50,000 to 60,000, with mill throughput volumes projected to increase and mined and processed gold grades expected to return to long-term block model averages.
Copper C1 cash cost guidance on a consolidated basis is
At the Xavantina Operations, the C1 cash cost guidance range of
| Consolidated Copper Production (tonnes) | |
| Caraíba Operations | 37,500 - 42,500 |
| Tucumã Operation | 37,500 - 42,500 |
| Total Copper | 75,000 - 85,000 |
| Consolidated Copper C1 Cash Cost(1) Guidance | |
| Caraíba Operations | |
| Tucumã Operation | |
| Consolidated Copper Operations | |
| The Xavantina Operations | |
| Au Production (ounces) | 50,000 - 60,000 |
| Gold C1 Cash Cost(1) Guidance | |
| Gold AISC(1) Guidance |
Note: Guidance is based on estimates and assumptions including, but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical recovery performance. Please refer to the Company’s SEDAR+ and EDGAR filings, including the most recent Annual Information Form ("AIF"), for a detailed summary of risk factors.
(1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within the MD&A.
2025 CAPITAL EXPENDITURE GUIDANCE(*)
Capital expenditures are expected to decrease to a range of
Figures presented in the table below are in USD millions.
| Caraíba Operations | |
| Tucumã Operation(1) | |
| Xavantina Operations | |
| Furnas Copper-Gold Project and Other Exploration | |
| Total |
Note: Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company’s most recent Annual Information Form and Management of Risks and Uncertainties in the MD&A for complete risk factors.
(1) Excludes capitalized ramp-up costs prior to the declaration of commercial.
CONFERENCE CALL DETAILS
The Company will hold a conference call on Friday, March 7, 2025 at 11:30 am Eastern time (8:30 am Pacific time) to discuss these results. A results presentation will be available for download via the webcast link and in the Presentations section of the Company's website on the day of the conference call.
| Date: | Friday, March 7, 2025 | |
| Time: | 11:30 am Eastern time (8:30 am Pacific time) | |
| Dial in: | Canada/USA Toll Free: 1-844-763-8274 International: +1-647-484-8814 Please dial in 5-10 minutes prior to the start of the call or pre-register using this link to bypass the live operator queue. (https://dpregister.com/sreg/10196217/fe5a12f75d) | |
| Webcast: | To access the webcast, click here. (https://event.choruscall.com/mediaframe/webcast.html?webcastid=mvwyHhWr) | |
| Replay: | Canada/USA: 1-855-669-9658, International: +1-412-317-0088 For country-specific dial-in numbers, click here. (https://services.choruscall.com/ccforms/replay.html) | |
| Replay Passcode: | 2945658 | |
Reconciliation of Non-IFRS Measures
Financial results of the Company are presented in accordance with IFRS. The Company utilizes certain alternative performance (non-IFRS) measures to monitor its performance, including copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, gold C1 cash cost, gold AISC, EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share, net (cash) debt, working capital and available liquidity. These performance measures have no standardized meaning prescribed within generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar measures presented by other mining companies. These non-IFRS measures are intended to provide supplemental information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
For additional details please refer to the Company’s discussion of non-IFRS and other performance measures in its Management’s Discussion and Analysis for the year ended December 31, 2024 which is available on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov.
Copper C1 cash cost and copper C1 cash cost including foreign exchange hedges
The following table provides a reconciliation of copper C1 cash cost to cost of production, its most directly comparable IFRS measure.
| Reconciliation: | 2024 - Q4 | 2024 - Q3 | 2023 - Q4 | 2024 | 2023 | |||||||||||||||
| Cost of production | $ | 33,685 | $ | 40,149 | $ | 39,790 | $ | 158,006 | $ | 153,187 | ||||||||||
| Add (less): | ||||||||||||||||||||
| Transportation costs & other | 1,149 | 1,283 | 1,853 | 4,967 | 6,539 | |||||||||||||||
| Treatment, refining, and other | 2,934 | 3,170 | 7,332 | 15,332 | 28,323 | |||||||||||||||
| By-product credits | (5,163 | ) | (6,584 | ) | (3,394 | ) | (17,618 | ) | (12,930 | ) | ||||||||||
| Incentive payments | 1,127 | (1,138 | ) | (1,693 | ) | (2,384 | ) | (5,668 | ) | |||||||||||
| Net change in inventory | 927 | (1,220 | ) | 1,434 | (4,654 | ) | 4,407 | |||||||||||||
| Foreign exchange translation and other | 168 | 3 | 20 | 185 | (149 | ) | ||||||||||||||
| C1 cash costs(1) | 34,827 | 35,663 | 45,342 | 153,834 | 173,709 | |||||||||||||||
| (Gain) loss on foreign exchange hedges | 4,166 | 1,965 | (4,185 | ) | 5,901 | (11,417 | ) | |||||||||||||
| C1 cash costs including foreign exchange hedges | $ | 38,993 | $ | 37,628 | $ | 41,157 | $ | 159,735 | $ | 162,292 | ||||||||||
| Mining | $ | 24,906 | $ | 26,529 | $ | 26,646 | $ | 104,572 | $ | 102,908 | ||||||||||
| Processing | 6,580 | 7,069 | 8,177 | 28,753 | 30,736 | |||||||||||||||
| Indirect | 5,570 | 5,479 | 6,581 | 22,795 | 24,672 | |||||||||||||||
| Production costs | 37,056 | 39,077 | 41,404 | 156,120 | 158,316 | |||||||||||||||
| By-product credits | (5,163 | ) | (6,584 | ) | (3,394 | ) | (17,618 | ) | (12,930 | ) | ||||||||||
| Treatment, refining and other | 2,934 | 3,170 | 7,332 | 15,332 | 28,323 | |||||||||||||||
| C1 cash costs(1) | 34,827 | 35,663 | 45,342 | 153,834 | 173,709 | |||||||||||||||
| (Gain) loss on foreign exchange hedges | 4,166 | 1,965 | (4,185 | ) | 5,901 | (11,417 | ) | |||||||||||||
| C1 cash costs including foreign exchange | $ | 38,993 | $ | 37,628 | $ | 41,157 | $ | 159,735 | $ | 162,292 | ||||||||||
(1) Copper C1 cash costs for 2024 do not include Tucumã Operation's results, as commercial production has not been achieved as of December 31, 2024.
| 2024 - Q4 | 2024 - Q3 | 2023 - Q4 | 2024 | 2023 | ||||||||||||||||
| Costs per pound | ||||||||||||||||||||
| Total copper produced (lbs, 000) | 18,883 | 21,871 | 25,926 | 78,140 | 96,688 | |||||||||||||||
| Mining | $ | 1.32 | $ | 1.22 | $ | 1.03 | $ | 1.34 | $ | 1.06 | ||||||||||
| Processing | $ | 0.35 | $ | 0.32 | $ | 0.32 | $ | 0.37 | $ | 0.32 | ||||||||||
| Indirect | $ | 0.29 | $ | 0.25 | $ | 0.25 | $ | 0.29 | $ | 0.26 | ||||||||||
| By-product credits | $ | (0.27 | ) | $ | (0.30 | ) | $ | (0.13 | ) | $ | (0.23 | ) | $ | (0.13 | ) | |||||
| Treatment, refining and other | $ | 0.16 | $ | 0.14 | $ | 0.28 | $ | 0.20 | $ | 0.29 | ||||||||||
| Copper C1 cash costs(1) | $ | 1.85 | $ | 1.63 | $ | 1.75 | $ | 1.97 | $ | 1.80 | ||||||||||
| (Gain) loss on foreign exchange hedges | $ | 0.22 | $ | 0.09 | $ | (0.16 | ) | $ | 0.08 | $ | (0.12 | ) | ||||||||
| Copper C1 cash costs including foreign exchange hedges | $ | 2.07 | $ | 1.72 | $ | 1.59 | $ | 2.05 | $ | 1.68 | ||||||||||
(1) Copper C1 cash costs for 2024 do not include Tucumã Operation's results, as commercial production has not been achieved as of December 31, 2024.
Gold C1 cash cost and gold AISC
The following table provides a reconciliation of gold C1 cash cost and gold AISC to cost of production, its most directly comparable IFRS measure.
| Reconciliation: | 2024 - Q4 | 2024 - Q3 | 2023 - Q4 | 2024 | 2023 | ||||||||||||||
| Cost of production | $ | 9,000 | $ | 6,220 | $ | 7,122 | $ | 30,055 | $ | 25,209 | |||||||||
| Add (less): | |||||||||||||||||||
| Incentive payments | (434 | ) | (378 | ) | (386 | ) | (1,481 | ) | (1,424 | ) | |||||||||
| Net change in inventory | (1,914 | ) | 1,378 | 65 | (594 | ) | 862 | ||||||||||||
| By-product credits | (189 | ) | (232 | ) | (248 | ) | (869 | ) | (827 | ) | |||||||||
| Smelting and refining | 62 | 79 | 113 | 328 | 353 | ||||||||||||||
| Foreign exchange translation and other | 125 | 203 | 296 | 775 | 806 | ||||||||||||||
| C1 cash costs | $ | 6,650 | $ | 7,270 | $ | 6,962 | $ | 28,214 | $ | 24,979 | |||||||||
| Site general and administrative | 1,576 | 1,321 | 1,492 | 5,600 | 5,366 | ||||||||||||||
| Accretion of mine closure and rehabilitation | 78 | 82 | 111 | 340 | 439 | ||||||||||||||
| Sustaining capital expenditure | 4,597 | 2,784 | 5,499 | 13,288 | 16,300 | ||||||||||||||
| Sustaining lease payments | 1,681 | 1,801 | 1,861 | 7,512 | 7,093 | ||||||||||||||
| Royalties and production taxes | 526 | 686 | 785 | 2,584 | 2,487 | ||||||||||||||
| AISC | $ | 15,108 | $ | 13,944 | $ | 16,710 | $ | 57,538 | $ | 56,664 | |||||||||
| 2024 - Q4 | 2024 - Q3 | 2023 - Q4 | 2024 | 2023 | |||||||||||
| Costs | |||||||||||||||
| Mining | $ | 3,325 | $ | 3,852 | $ | 3,430 | $ | 14,702 | $ | 12,154 | |||||
| Processing | 2,162 | 2,419 | 2,315 | 9,117 | 8,433 | ||||||||||
| Indirect | 1,290 | 1,152 | 1,352 | 4,936 | 4,866 | ||||||||||
| Production costs | 6,777 | 7,423 | 7,097 | 28,755 | 25,453 | ||||||||||
| Smelting and refining costs | 62 | 79 | 113 | 328 | 353 | ||||||||||
| By-product credits | (189 | ) | (232 | ) | (248 | ) | (869 | ) | (827 | ) | |||||
| C1 cash costs | $ | 6,650 | $ | 7,270 | $ | 6,962 | $ | 28,214 | $ | 24,979 | |||||
| Site general and administrative | 1,576 | 1,321 | 1,492 | 5,600 | 5,366 | ||||||||||
| Accretion of mine closure and rehabilitation | 78 | 82 | 111 | 340 | 439 | ||||||||||
| Sustaining capital expenditure | 4,597 | 2,784 | 5,499 | 13,288 | 16,300 | ||||||||||
| Sustaining leases | 1,681 | 1,801 | 1,861 | 7,512 | 7,093 | ||||||||||
| Royalties and production taxes | 526 | 686 | 785 | 2,584 | 2,487 | ||||||||||
| AISC | $ | 15,108 | $ | 13,944 | $ | 16,710 | $ | 57,538 | $ | 56,664 | |||||
| Costs per ounce | |||||||||||||||
| Total gold produced (ounces) | 8,936 | 13,485 | 16,867 | 57,210 | 59,222 | ||||||||||
| Mining | $ | 372 | $ | 286 | $ | 203 | $ | 257 | $ | 205 | |||||
| Processing | $ | 242 | $ | 179 | $ | 137 | $ | 159 | $ | 142 | |||||
| Indirect | $ | 144 | $ | 85 | $ | 80 | $ | 86 | $ | 82 | |||||
| Smelting and refining | $ | 7 | $ | 6 | $ | 7 | $ | 6 | $ | 6 | |||||
| By-product credits | $ | (21 | ) | $ | (17 | ) | $ | (14 | ) | $ | (15 | ) | $ | (13 | ) |
| Gold C1 cash cost | $ | 744 | $ | 539 | $ | 413 | $ | 493 | $ | 422 | |||||
| Gold AISC | $ | 1,691 | $ | 1,034 | $ | 991 | $ | 1,006 | $ | 957 | |||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA
The following table provides a reconciliation of EBITDA and Adjusted EBITDA to net income, its most directly comparable IFRS measure.
| Reconciliation: | 2024 - Q4 | 2024 - Q3 | 2023 - Q4 | 2024 | 2023 | ||||||||||||||
| Net (Loss) Income | $ | (48,928 | ) | $ | 41,367 | $ | 37,052 | $ | (67,790 | ) | $ | 94,304 | |||||||
| Adjustments: | |||||||||||||||||||
| Finance expense | 3,851 | 4,039 | 5,284 | 17,089 | 25,822 | ||||||||||||||
| Finance income | (690 | ) | (781 | ) | (1,989 | ) | (4,300 | ) | (12,465 | ) | |||||||||
| Income tax (recovery) expense | (5,862 | ) | 8,331 | 8,415 | (7,651 | ) | 18,047 | ||||||||||||
| Amortization and depreciation | 20,265 | 21,555 | 24,980 | 87,410 | 83,024 | ||||||||||||||
| EBITDA | $ | (31,364 | ) | $ | 74,511 | $ | 73,742 | $ | 24,758 | $ | 208,732 | ||||||||
| Foreign exchange loss (gain) | 92,804 | (17,246 | ) | (24,871 | ) | 165,008 | (34,612 | ) | |||||||||||
| Share based compensation | (7,496 | ) | 4,859 | 477 | 9,983 | 9,218 | |||||||||||||
| Change in rehabilitation and closure provision(1) | 4,609 | — | — | 4,609 | — | ||||||||||||||
| Write-down of exploration and evaluation asset | 839 | 467 | — | 12,051 | — | ||||||||||||||
| Unrealized (gain) loss on commodity derivatives | (250 | ) | (360 | ) | 955 | (238 | ) | 115 | |||||||||||
| Adjusted EBITDA | $ | 59,142 | $ | 62,231 | $ | 50,303 | $ | 216,171 | $ | 183,453 | |||||||||
(1) Change in rehabilitation and closure provision relates to revisions to rehabilitation and closure plans and cost estimates at the Company’s historic mining operations that have entered the closure phase, and for which there are no substantive future economic value. Such costs are reflected within other expenses on the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income.
Adjusted net income attributable to owners of the Company and Adjusted net income per share attributable to owners of the Company
The following table provides a reconciliation of Adjusted net income attributable to owners of the Company and Adjusted EPS to net income attributable to the owners of the Company, its most directly comparable IFRS measure.
| Reconciliation: | 2024 - Q4 | 2024 - Q3 | 2023 - Q4 | 2024 | 2023 | ||||||||||
| Net (loss) income as reported attributable to the owners of the Company | $ | (48,944 | ) | $ | 40,857 | $ | 36,549 | $ | (68,475 | ) | $ | 92,804 | |||
| Adjustments: | |||||||||||||||
| Share based compensation | (7,496 | ) | 4,859 | 477 | 9,983 | 9,218 | |||||||||
| Unrealized foreign exchange loss (gain) on USD denominated balances in MCSA | 66,971 | (11,860 | ) | (10,308 | ) | 114,885 | (15,296 | ) | |||||||
| Unrealized foreign exchange loss (gain) on foreign exchange derivative contracts | 15,182 | (9,807 | ) | (9,852 | ) | 30,685 | (7,552 | ) | |||||||
| Change in rehabilitation and closure provision(1) | 4,591 | — | — | 4,591 | — | ||||||||||
| Write-down of exploration and evaluation asset | 836 | 465 | — | 12,046 | — | ||||||||||
| Unrealized (gain) loss on commodity derivatives | (243 | ) | (367 | ) | 951 | (240 | ) | 115 | |||||||
| Tax effect on the above adjustments | (13,459 | ) | 3,431 | 2,932 | (23,060 | ) | 3,472 | ||||||||
| Adjusted net income attributable to owners of the Company | $ | 17,438 | $ | 27,578 | $ | 20,749 | $ | 80,415 | $ | 82,761 | |||||
| Weighted average number of common shares | |||||||||||||||
| Basic | 103,345,064 | 103,239,881 | 98,099,791 | 103,106,305 | 94,111,548 | ||||||||||
| Diluted | 103,877,690 | 103,973,827 | 98,482,755 | 103,713,563 | 94,896,334 | ||||||||||
| Adjusted EPS | |||||||||||||||
| Basic | $ | 0.17 | $ | 0.27 | $ | 0.21 | $ | 0.78 | $ | 0.88 | |||||
| Diluted | $ | 0.17 | $ | 0.27 | $ | 0.21 | $ | 0.78 | $ | 0.87 | |||||
(1) Change in rehabilitation and closure provision relates to revisions to rehabilitation and closure plans and cost estimates at the Company’s historic mining operations that have entered the closure phase, and for which there are no substantive future economic value. Such costs are reflected within other expenses on the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income.
Net Debt (Cash)
The following table provides a calculation of net debt (cash) based on amounts presented in the Company’s consolidated financial statements as at the periods presented.
| December 31, 2024 | September 30, 2024 | December 31, 2023 | |||||||||
| Current portion of loans and borrowings | $ | 45,893 | $ | 39,383 | $ | 20,381 | |||||
| Long-term portion of loans and borrowings | 556,296 | 499,527 | 405,852 | ||||||||
| Less: | |||||||||||
| Cash and cash equivalents | (50,402 | ) | (20,229 | ) | (111,738 | ) | |||||
| Short-term investments | — | — | — | ||||||||
| Net debt (cash) | $ | 551,787 | $ | 518,681 | $ | 314,495 | |||||
Working Capital and Available Liquidity
The following table provides a calculation for these based on amounts presented in the Company’s consolidated financial statements as at the periods presented.
| December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||
| Current assets | $ | 141,790 | $ | 126,808 | $ | 199,487 | ||||||
| Less: Current liabilities | (211,706 | ) | (187,708 | ) | (173,800 | ) | ||||||
| Working (deficit) capital | $ | (69,916 | ) | $ | (60,900 | ) | $ | 25,687 | ||||
| Cash and cash equivalents | 50,402 | 20,229 | 111,738 | |||||||||
| Short-term investments | — | — | — | |||||||||
| Available undrawn revolving credit facilities | 15,000 | 80,000 | 150,000 | |||||||||
| Available undrawn prepayment facilities(2) | $ | 25,000 | $ | 25,000 | $ | — | ||||||
| Available liquidity | $ | 90,402 | $ | 125,229 | $ | 261,738 | ||||||
(1) In January 2025, the Company amended its Senior Credit Facility to increase the limit from
(2) In May 2024, the Company entered into a
ABOUT ERO COPPER CORP
Ero Copper is a high-margin, high-growth copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C. The Company's primary asset is a
FOR MORE INFORMATION, PLEASE CONTACT
Courtney Lynn, Executive Vice President, External Affairs and Strategy
(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 Company's expected production, operating costs and capital expenditures at the Caraíba Operations, the Tucumã Operation and the Xavantina Operations; estimated timing for certain milestones, including completion of scheduled maintenance activities at the Tucumã Operation by the end of March 2025 and ramp-up of production levels and achievement of commercial production at the Tucumã Operation in H1 2025; mobilization of an additional underground development contractor by the end of Q1 2025 and accelerate development rates at the Pilar Mine; expectations related to exploration activities at the Furnas Project; expectations related to foreign exchange rates as well as copper concentrate treatment and refining charges; 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 subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual results, actions, events, conditions, performance or achievements to materially differ from those expressed or implied by the forward-looking statements, including, without limitation, risks discussed in this press release and in the Company’s Annual Information Form for the year ended December 31, 2023 (“AIF”) under the heading “Risk Factors”. The risks discussed in this press release and in the AIF are not exhaustive of the factors that may affect any of the Company’s forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results, actions, events, conditions, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, actions, events, conditions, performance or achievements to differ from those anticipated, estimated or intended.
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, the Tucumã Operation and the Furnas Copper-Gold 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, interest rates and tariff 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.
CAUTIONARY NOTES REGARDING MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
Unless otherwise indicated, all reserve and resource estimates included in this press release and the documents incorporated by reference herein have been prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) — CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Standards”). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”), and reserve and resource information included herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, this press release and the documents incorporated by reference herein use the terms “measured resources,” “indicated resources” and “inferred resources” as defined in accordance with NI 43-101 and the CIM Standards.
Further to recent amendments, mineral property disclosure requirements in the United States (the “U.S. Rules”) are governed by subpart 1300 of Regulation S-K of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) which differ from the CIM Standards. As a foreign private issuer that is eligible to file reports with the SEC pursuant to the multi-jurisdictional disclosure system (the “MJDS”), Ero is not required to provide disclosure on its mineral properties under the U.S. Rules and will continue to provide disclosure under NI 43-101 and the CIM Standards. If Ero ceases to be a foreign private issuer or loses its eligibility to file its annual report on Form 40-F pursuant to the MJDS, then Ero will be subject to the U.S. Rules, which differ from the requirements of NI 43-101 and the CIM Standards.
Pursuant to the new U.S. Rules, the SEC recognizes estimates of “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”. In addition, the definitions of “proven mineral reserves” and “probable mineral reserves” under the U.S. Rules are now “substantially similar” to the corresponding standards under NI 43-101. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, U.S. investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that Ero reports are or will be economically or legally mineable. Further, “inferred mineral resources” have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies, except in rare cases. While the above terms under the U.S. Rules are “substantially similar” to the standards under NI 43-101 and CIM Standards, there are differences in the definitions under the U.S. Rules and CIM Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that Ero may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had Ero prepared the reserve or resource estimates under the standards adopted under the U.S. Rules.
FAQ
What were Ero Copper's (ERO) Q4 2024 production and financial highlights?
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What were Ero Copper's (ERO) operating costs for copper and gold in Q4 2024?
