Ero Copper (ERO) Q2 2025 earnings summary

Executive summary

• Achieved record consolidated copper production of 15,513 tonnes and gold production of 7,743 ounces in Q2 2025, driven by ramp-up at Tucumã and higher grades at Caraíba, with strong operational improvements and cost control initiatives across all sites.

• Commercial production at Tucumã was declared effective July 1, 2025, after sustained throughput exceeded 75% of design capacity.

• Cash flow from operations was $90.3 million, adjusted EBITDA was $82.7 million, and adjusted net income per share was $0.46.

• Net debt leverage ratio improved to 2.1x from 2.4x sequentially, with available liquidity at $113.3 million.

• Initiatives to return capital to shareholders have been initiated, with continued deleveraging and operational improvements.

Financial highlights

• Q2 2025 revenue was $163.5 million, up from $125.1 million in Q1 2025.

• Adjusted EBITDA reached $82.7 million, and adjusted net income attributable to owners was $48.1 million ($0.46/share diluted).

• Cash flow from operations was $90.3 million, with available liquidity of $113.3 million at quarter-end.

• Net debt stood at $552–559.1 million, with net debt to EBITDA ratio at 2.1x.

• Realized a modest $0.2 million gain from FX hedging activities.

Outlook and guidance

• Consolidated 2025 copper production guidance updated to 67,500–80,000 tonnes due to slower ramp-up at Tucumã.

• Caraíba full-year guidance reaffirmed at 37,500–42,500 tonnes, with C1 cash costs in the lower half of $2.15–$2.35/lb.

• Tucumã guidance revised to 30,000–37,500 tonnes at $1.10–$1.30/lb C1 cash cost.

• Xavantina gold production guidance lowered to 40,000–50,000 oz, with C1 cash cost $850–$1,000/oz and AISC $1,800–$2,000/oz.

• Capital expenditures for 2025 guided at $165–$180 million for core assets, with total capex guidance unchanged at $230–$270 million.