Ero Copper (ERO) Q3 2025 earnings summary

Executive summary

• Achieved record consolidated copper production of 16,664 tonnes and gold production of 9,073 ounces in Q3 2025, driven by strong sequential improvements and operational transformation across all sites.

• Cash flow from operations reached $110.3 million, adjusted EBITDA was $77.1 million, and adjusted net income attributable to owners was $27.9 million, or $0.27 per share.

• Declared commercial production at Tucumã, with sequential production growth and improved plant throughput.

• All operations set all-time monthly productivity and production records in October, with expectations for Q4 to be the strongest quarter of the year.

• Focused on deleveraging, operational excellence, and advancing long-term growth initiatives.

Financial highlights

• Q3 2025 revenues were $177.1 million, up $14 million sequentially and from $124.8 million in Q3 2024, driven by higher copper and gold prices and increased copper concentrate sales at Tucumã.

• Adjusted EBITDA was $77.1 million; adjusted net income attributable to owners was $27.9 million, or $0.27 per share.

• Cash flow from operations was $110.3 million, more than double the $52.7 million in Q3 2024.

• Liquidity at quarter end was $111.3 million, including $66.3 million in cash and $45 million undrawn on the credit facility.

• Net debt stood at $545.5 million at quarter-end, with net debt leverage ratio improved to 1.9x from 2.1x in Q2.

Outlook and guidance

• Full-year copper production guidance reaffirmed at 67,500–80,000 tonnes, with Q4 expected to be the strongest quarter across all operations.

• 2025 cost guidance: Caraíba C1 cash cost $2.15–$2.35/lb, Tucumã C1 cash cost $1.35–$1.55/lb, Xavantina gold C1 cash cost $850–$1,000/oz, AISC $1,800–$2,000/oz.

• Capital expenditures for 2025 expected at $165–$180 million, with additional exploration spend; overall capex guidance unchanged at $230–$270 million.

• Expect to sell 10,000–15,000 tons of gold concentrate in Q4 at $300–$500/oz operating cost, with full stockpile sales over 12–18 months.

• Tucumã to reach design capacity in the second half of next year, with ongoing debottlenecking and filtration upgrades.